Make Your Offer HEFTY HEFTY HEFTY, NOT Wimpy Wimpy Wimpy!

By
Commercial Real Estate Agent with Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker AZ BR 528507000

I was in the grocery store yesterday and heard the checker talking to a stocker:

 

"Hey Joe, did you get your house yet?"

 

"Just lost the third bid!"

 

 

Hah! You couldn't PAY ME ENOUGH to get in on THAT conversation, but I knew exactly what was going on.

I don't do much residential, but our market here is flowing just like the Mighty Colorado that runs through it . . .

 

I thought to myself, "His agent is letting him make stupid offers! He'll NEVER get a house till he gets REAL!" LOLZ

 

Why would I think this, being a Mohave County AZ commercial real estate broker?

 

Because after selling hundreds of residential units in my earlier years, and handling a few residential units annually for valued clients, I know exactly what it looks like.

 

Agents do their buyer-clients NO FAVORS making wimpy wimpy wimpy offers! 

 

And it's not ALWAYS about 'sticker price'.

 

Wimpy wimpy wimpy:

 

Low deposit, low return. Too-small earnest deposit is a terrible idea! You might as well say 'I can't scrape up enough skin to even BE in this game!' In almost all instances, the deposit is 'soft' until contingencies are cleared. So what's the problem? Make your deposit 'on the high side of customary for your area' . . . there's a reason it's called 'earnest money' - to demonstrate you're for real.

 

Dirty laundry. Contingency contracts may or may not be doable in your area, but too many 'subject tos' will decrease the buyer's desirability. 

 

Moon and stars. If needing help with CCs, why further bend over the seller with a lowball if the house is priced right to begin with?

 

 

HEFTY HEFTY HEFTY:

 

Give to get. Think like a seller. What can you concede on that won't kill you, but might make the seller perk up? Shortened due diligence period or escrow? Buy your own home warranty? 

 

Quality qualifying. A reputable lender in the local area can help you make inroads. MAKE SURE the lender is willing to engage with the listing broker. A lender who is unreachable or not forthcoming with basic information is a confidence-buster. They should be able to answer the question, "Is there any reason the borrower would have any problem closing this deal?" with a resounding "NO". They should also be able to state that proper and current application documentation is in. 

 

Prove it. If paying cash, a funds letter from your bank stating that you have available funds to make this purchase will be necessary. Don't make us guess whether you have the dough!

 

Spic and span. A clear contract in plain language with no contradictions or ambiguities will reduce the need for analgesics and help your cause.

 

So . . . make your offer too sexy for Milan, New York and Japan! 

 

 

And too HEFTY for a 'no'!

 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Nick Vandekar, 610-203-4543 11/21/2019 08:17 AM
Topic:
Real Estate Best Practices
Groups:
Bartender, Make it a Double

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Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Well done, Candice and I do have a few songs swimming around in my head. Buyers need to understand that this isn't a game they're playing. You want the house, then bid like you want it. 

Nov 21, 2019 06:19 PM #11
Ambassador
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Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I admire your restraint. I would have asked just out of curiosity. I believe they are the same people who price shop when looking for a Realtor. 

Nov 21, 2019 06:36 PM #12
Rainmaker
329,458
Gordon Crawford
Gordon Crawford Home Selling Team - Morristown, NJ
Your Morris County Specialist!

Couldn’t agree with you more, Candice!  If you want the house, show the seller the money!  Sometimes it takes a buyer losing a couple houses before they understand what it takes to get the house

Nov 22, 2019 05:17 AM #13
Rainmaker
641,679
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Yes, you're right. I had a listing once with multiple offers. One of the agents whose clients lost the bid called me to ask what they could have done differently. She was afraid her clients were about to dump her. Without disclosing anything confidential, I told her how to win an offer on the next property her clients bid on. Of course, this included a high due diligence fee which in our state is non refundable. When I told her this, she said "I could never advise my clients to put down that much money non refundable" (it was $1000). My response was "it is your job to advise your clients what it will take to win a bid, not to decide how much money is too much for them". Agents can take these things personal which isn't doing their clients a good service. I don't know if she helped them buy or if they went on to another agent.

Nov 22, 2019 05:17 AM #14
Ambassador
2,239,285
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Fantastic post Candice! Offering $250K on a $300K home will not get a buyer keys to the castle! It is a matter of educating them -before- proceeding on killing any chance of getting an acceptance.

Nov 22, 2019 06:05 AM #15
Rainmaker
207,647
Debbie Holmes
John L. Scott - Boise, ID
Gets the job done!

I loved the title!  What you said is so true.   I have had buyers that cannot scrape a lot of earnest money together.  We deal with it with a strong long letter.   It so important to educate  the buyer in the market that exists today.  

 

Nov 22, 2019 06:38 AM #16
Rainmaker
2,484,008
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Every piece of Real Estate that I wanted was bought. The real work was whether me my wife or associates wanted it. The word want is the key. Want leads to get and get to action with results awaiting. Why drag it out? If all cash purchase perhaps a creative offer. If financed, we are talking pennies on the payment when dickering on purchase price. Real focus?: Condition, costs & repairs. Interesting to note that when asking price (or close to it) is paid everything else is so flexible/doable. 

Nov 22, 2019 07:21 AM #17
Rainmaker
456,217
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Candice, I once told two buyers (on our third offer) you can't' try to steal everything! Wife got mad and stormed out of the office! The husband thanked me for my candor. They got the message and we got the third one under contract, and closed on the home!

Nov 22, 2019 03:40 PM #18
Rainmaker
2,790,114
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I remember that slogan from back in my childhood days. Totally fits the metaphor and it made me chuckle! :)

Nov 22, 2019 08:40 PM #19
Rainmaker
2,790,114
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Tom Bailey I have a feeling that nothing gets past you and that’s a good thing in real estate!

Nov 22, 2019 08:41 PM #20
Rainmaker
478,736
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Especially when we are in a seller's market ... a buyer has to get rid of the stinkin' thinkin' that they can low-ball or try to steal  the property.  If you are a serious buyer -- let the seller know by a good offer, a solid Escrow, Approval Letter and the least amount of contingencies as possible.  If they think they need to sleep on it overnight ... they will never sleep in it. I tell my buyers like it is ... and most of the offers I write get accepted.  I don't like losing, and I don't like seeing my buyers lose either.  It's gotta be a win/win!!!

Nov 24, 2019 05:53 PM #21
Rainmaker
2,826,031
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I just spent two days with a newbie agent representing a buyer on one of my listings. Good heavens.  Her clients - very well qualified - nearly lost the opportunity because she could not get the contract right even after I told her what she needed to do.  That is more a matter of lack of training.  

Nov 24, 2019 06:58 PM #22
Rainmaker
383,170
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Another amusing and totally on point post!     Love your subheaders 

Dirty Laundry and Moon and Stars.    Buyers need to get educated if they're serious...

Nov 25, 2019 08:21 AM #23
Rainmaker
711,839
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I once worked with a couple who made offer after offer without success. At one point, they said to me, “You know, John, if we would have taken your advice re: offering price months ago, we would be in our own home now.” They finally got it and we were soon in escrow.

Nov 25, 2019 02:44 PM #24
Rainer
536,324
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Low or no earnest money combined with a lowball offer is a kiss of death to an offer. Please talk to listing agent before you do such a silly thing to waste everybody's time

Nov 26, 2019 04:25 AM #25
Rainmaker
1,717,942
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Totally right about the earnest money - put your money where your mouth is! and talking to the listing agent to see what matters is a great idea too 

Nov 26, 2019 04:53 AM #26
Rainmaker
330,070
Sharon Miller
RE/MAX Platinum - Crane Hill, AL

Fantastic post,

It's unfortunate that many buyer's wouldn't even recognize themselves from the description you presented. I think many potential buyers today, continue to fantasize......lingering "after effects" remain from our most recent recession, consequently, they perceive "low balling" their offering price is quite "doable", and it will actually entice a "desperate" seller to react with much enthusiasm. These type buyers are the same individuals who firmly perceive, the asking price associated with any listed property, was probably drawn from a bag which was filled with folded pieces of paper having numbers written on them. Using CC's as validation to support an asking price for these people, is like asking them to comprehend the instructions for filing their Federal Tax Return. 

When a realtor reaches a point where the property is not in question but there is a hesitation regarding the listed asking price, I always ask the prospective buyer, "since you have identified this property as one that meets your criteria, in the event we can't reach an agreement on price, do you have another property listing you are willing to consider?" Almost one-hundred percent of the time, it's not the property, it's not the asking price.......it's the fact the buyer(s) want to see themselves as "winning" the price battle. It's much more exciting to share your "conquest" with family, friends and co-workers than to be "emotionally" drained because you had to bid, negotiate or pay the seller's asking price! For many today, it's all about winning or losing the pricing battle. The fact that they may or may not have acquired their "dream home" is of secondary concern!

Stay the course and use the "take away" strategy with every "low ball" buyer, as on occasion, the light bulb turns on in the minds of a few! 

Nov 26, 2019 07:13 AM #27
Rainmaker
214,812
L. Scott Ferguson
Ask4Ferguson - Your House-SOLD Name in Real Estate - West Palm Beach, FL
Sunny Florida Real Estate Professional

Awesome post, with story and good points!  Passing onto my new buyers agent to review!  

 

Blessings!

Nov 26, 2019 09:54 AM #28
Rainmaker
240,804
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Unfortunately we still have way too many buyers looking for a bargain. When the inventory is low, the good ones go fast.

Nov 26, 2019 04:45 PM #29
Rainmaker
537,007
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Like you I would not have contributed to that conversation but would be interested in hearing more!  Could be this buyer can only qualify for FHA, or lowballs, or -as you know--so many other factors.  Have to educate buyers on the market and what to expect before making an offer! I've had buyers lose three times in a row as well

Nov 29, 2019 07:39 AM #30
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