Why Your Limp Offer Won't Fly High In A Viagra Market

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

It's all negotiation, right?

Come in low, they'll counter, back and forth till you get a better deal than you might have putting your best offer forward.

Unless they don't. Unless you don't.

We got one of those this week. 40 cents on the dollar on a scarce property in a desirable area. 

Seller instructs me in writing to reject outright. Waste of his time.

I forward the rejection. Buyer's agent demands a counter.
(yeah, I know.)

Fine. I ask. 

Seller says to me: "Sure, counter at full price. When they come in that low to begin with, they are NOT SERIOUS BUYERS. This will be a headache for me all the way through. I know this type." (he does, he's an attorney and a CA contractor) 

He is right. 

And if you know me, you know my favorite saying:

The way someone does something is the way they will do everything. 

So if you want the property and you know other offers are or are coming in (they knew or should know)

Take your best shot outta the gate. ALWAYS.

You are not entitled to a counter, or a response AT ALL. There's a reason for the 'drop dead time for response' provision in the Contract.

Your agent should be analyzing and recommending a strategy to make a sensible deal.

Time is more valuable than money.

Even here. Even now.

 

Comments (32)

Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Some people just don't get it and probably never will, haha.  I like having fun with those types of people, haha.

Apr 09, 2021 05:37 AM
Candice A. Donofrio

🧠! That is just mean and cruel and I do it too. LOL

Apr 09, 2021 07:57 AM
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

I often wonder .... is it the agent not doing their job? OR the buyer just wants to be a bonehead since he knows the market is brisk?

It's like going into Macy's & saying you only want to pay for 40% of that sweater. Is that going to work? Nope. 

Apr 09, 2021 06:09 AM
Candice A. Donofrio

Answer is YES. Combo of buyer wanting to be a bonehead and agent being a hero. 'Hold my beer, I can get it for you half price because I am da best!'

Apr 09, 2021 07:58 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

There is little room for negotiation right now. As you mention, read the market. Highest and best. 

Apr 09, 2021 06:20 AM
Candice A. Donofrio

Right. Negotiate by presenting something solid and hard to resist!

Apr 09, 2021 07:58 AM
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Hands down the best title I have seen for a blog. 

Was it hard to come up with?   

I always encourage Buyers to come in with a rock solid and firm offer...

but some Buyers really try to give the Sellers the shaft and stick it to them...and...as most of us know... their low-ball soft approach usually leaves them rejected...dejected...and holding the bag.  

Apr 09, 2021 06:43 AM
Candice A. Donofrio

Hahahahah was it ever! 

Apr 09, 2021 07:53 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Candice - even when the ball is in your court, not understanding how the "other side" may react is simply nuts.

Apr 09, 2021 06:48 AM
Candice A. Donofrio

💯 When we rep sellers, we think like buyers. 
When we rep buyers, we think like sellers.


 

Apr 09, 2021 07:59 AM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

It's an insecure buyer's agent who will make a lowball offer because their buyer insists and then is surprised that no response is forthcoming.  But knowing that some buyers are just insistent enough to make their agent do this, but will go higher, I tell my sellers not to just dismiss that offer.  Work the offer.  But this only works when there are no multiple offers, of course.  Some homes are just harder to sell. 

Apr 09, 2021 10:54 AM
Candice A. Donofrio

One of my favorite commercial asset managers flat out REFUSES to counter 'too low' offers. She says 'they think we're stupid' LOL


I encourage my owners to counter, but when it's 'that low and flawed elsewhere' sometimes it's best to just ask for a better offer. If they are serious . . . they will.

Apr 10, 2021 09:08 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

last time an agent "demanded" a counter from a seller the seller wrote with a red sharpie "won't counter this crap" and I scanned and emailed it back.

Apr 09, 2021 01:16 PM
Candice A. Donofrio

❤️ you Tammy LOL

Apr 10, 2021 09:08 AM
Tammy Lankford,

Hey, it was my seller's idea.  I just followed their legal instructions! ;)


 

Apr 10, 2021 10:19 AM
Candice A. Donofrio

Do we love our clients or what? LOL

Apr 11, 2021 08:12 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

You do have a way with words. Great title, great post!

 

Apr 09, 2021 01:21 PM
Laura Cerrano

I had never heard that expression before so it must be one of her originals. Excellent stuff

Apr 09, 2021 04:22 PM
Candice A. Donofrio

One of my best friends said 'Anyone who says laughter is the best medicine has never suffered from erectile dysfunction' and so here we are! LOL

Apr 10, 2021 09:10 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I've never heard that expression before. "Viagra market," It's a good one for sure! Sometimes, you have to go big lol

Apr 09, 2021 04:20 PM
Candice A. Donofrio

Go big or no home! LOL

Apr 10, 2021 09:10 AM
Cathy Starkweather
La Rosa Realty, LLC. - Celebration, FL

Awesome post! So very true and I love your title! :)

Apr 10, 2021 05:28 AM
Candice A. Donofrio

Thank you maam!

Apr 10, 2021 09:10 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

On a recent listing, I had an offer come in only in email form.  The agent was insistent that I take this offer to my client.  It was a full $100,000 lower than the second lowest contract.  My seller laughed and I respectfully said no.  Of course, that was not the end of it.  The buyer's agent still pestered me.  There were so many red flags, I would have advised against this buyer even if he was the highest offer because it would not have been the best offer. 

BTW-I can remember an electrical plate just like the one pictured in my parent's house when I was a kid.  The only difference, the guy on our plate was rather portly. It sure did get a lot of attention!

Apr 10, 2021 07:20 AM
Candice A. Donofrio

  There were so many red flags, I would have advised against this buyer even if he was the highest offer because it would not have been the best offer. 


YUP!

Apr 10, 2021 09:11 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

BUYERS: Best offer right up front or kick yourself in the rear. I bet the amount of prescription's for Viagra went up with this post Candice! LOL

Apr 10, 2021 07:54 AM
Candice A. Donofrio

Capitalism is groovy! LOLLL

Apr 10, 2021 09:12 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

I have a couple of buyers that still haven't gotten the hint even though I have been hitting them on the head with the details.  It does get frustrating

Apr 10, 2021 09:54 AM
Candice A. Donofrio

It's sad for them if they are not serious . . . it gets old fast repeating the same thing and expecting different result. 

Apr 11, 2021 08:13 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Great title that pretty well captures what the market is like and how some buyers may be responding. When you are up against 15-20 offers there's only 1 way to play. It's clear who is in the power seat these days.

Apr 10, 2021 10:48 AM
Candice A. Donofrio

It will change . . . but for now . . .

Apr 11, 2021 08:13 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Some buyers think they know more than their agents--they absolutely refuse to think the market is as demanding as it is and "won't play those games".  They learn pretty fast--or they just don't buy a house.

Apr 10, 2021 04:46 PM
Candice A. Donofrio

One of my (commercial) clients is at least honest - "I'm a cheap guy and won't buy if I can't buy right. And if I don't get it, that's fine too." 
I told him you are what 1 page letters of interest were made for! LOL


People who need some place to live need to get serious!

Apr 11, 2021 08:15 AM
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Candice!

You are not entitled to a counter, or a response AT ALL. There's a reason for the 'drop dead time for response' provision in the Contract.

Your agent should be analyzing and recommending a strategy to make a sensible deal.

Apr 12, 2021 04:47 AM
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Great title to get attention. This is a crazy market and it isn't for the weak at heart. Some people are finding they're willing to take more risk than they ever thought they would.

Apr 12, 2021 09:02 AM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Fun blog today - thanks.  Fully deserving of the flag at Half-Mast. ;)

When I get a low ball offer like that, I ask the other agent to show me their comps to show me what I missed.  I have yet to change my position even splitting the difference 75/25 in my favor.

Apr 12, 2021 11:02 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

LOVE the title! Great information and advice.

We had a light switch plate like that (without the Viagra branding) in our first home. It was the switch for the basement light so not in full view. LOL

Apr 13, 2021 07:33 AM
Steven Nickens
Hawaii Life Real Estate Brokers - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Candice, I am done with a buyer that wants to offer 75cent on the dollar on a property, never going to happen.

Apr 15, 2021 08:03 PM