Funny thing, just this past week I received a very lowball offer for an off grid residential property. The potential buyer shared he had done his research and four years ago the sellers paid this amount. So he offered about $10,000 over what the current sellers paid.
When the potential buyer and I spoke, I shared the sellers had made considerable investment in upgrading the solar system including a new inverter, new batteries and new solar panels. Additionally other improvements had been made, plus residential property values continued to increase.
As a REALTOR®, the Code of Ethics obligates me to protect and promote my clients. Since this offer included a contingency addendum, I undertook additional research to better understand the 90 day contingency addendum.
I discovered the property the potential buyer had listed in another state. This property was not a residential property, but rather a very unique commercial property listed for over a million dollars that had been on and off the market for the last several years. NOTE: The buyer's agent failed to included the listing contract for the buyer's property that is expected to be included with the contingency addendum.
In reviewing the offer, there were many issues from the potential buyer including a 90 day contingency addendum. I printed out the entire offer, highlighted my concerns, re-scanned the offer with the highlights and then summarized those concerns on another document.
The sellers and I had a frank conversation and the lowball offer was rejected. Also, the sellers directed me to share their concerns about the offer in writing (via email) with the buyer's agent. Also, the sellers shared that they appreciated my review of the offer and the summation I included.
As this buyer had done his research and decided to make a lowball offer through his buyer's agent, he failed to realize the sellers through their listing agent can also carry out similar research. His offer strategy was viewed as rather insulting and the additional "requests" within the lowball offer were like rubbing "salt into the wound."
It's true that the market is cooling, but it's still a good idea not to lowball sellers on your offer. Most sellers know what their home is worth and don't want to waste time haggling. Going in with the highest and best offer right off the bat can help set you apart from other buyers. Of course, working with me is the best way to set you apart and give you the best chance of snagging your dream home.
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Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
Feature Photo Courtesy of ListReports.com
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