The meeting of the minds. I wish.

By
Real Estate Agent with My Florida Homes For Sale

I was working with some buyers last month and we found a home that the husband and wife finally agreed on but it was just a bit higher than they wanted to spend (they have seen almost every home in their price range). The owner of the home was also the list agent. He was at the house during the showing and we talked a bit about the buyers situation and told the owner/agent this home was their favorite but the buyers would not be able to offer even close to full price. He told us to make an offer and "we would definitely be able to work something out" since he had to sell. We went back to my office and prepared the offer. The home was listed at $499,000 (priced way too high) and we offered $440,000, their max loan amount. The seller said he wouldn't take less than $455,000. My buyers ended up talking to their parents and asked to borrow the difference. The parents could only come up with $10,000. We went back to the seller and told him we did all we could they could only pay $450,000. The seller said no way. Needless to say my people were let down. We told the seller/agent their max was $440,000. He told us to make the offer. They even went above their maximum. Can you imagine being so stubborn over $5,000. The carrying costs for 1 month for the seller would most likely equal that $5,000 difference. Here we are over a month later and his house still hasn't sold, he's dropped the price down to $479,000. The previous comps for his house valued it at around $425,000. I just sold a comparable listing of mine on Friday for $350,000. The home is less than 200 yards away from his. My listing is larger, has 1.5 more baths, and is 8 years newer and has ocean views. I feel sorry for the guy for not taking the original offer. Now my people won't even consider making another offer on his home because of the hard feelings even though it's the one home they love. Plus the new comp (my sale) drops his value way down.

The funniest thing about this situation is the same scenario you get at listing presentations. You say, this is what the data says your home is worth. The seller usually says, but my home is better than all those homes and is worth more. 

 

Comments (7)

ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
I can't imagine an agent who wouldn't kick in the $5,000 so that the client could get the home they loved.
May 13, 2007 09:28 AM
Anonymous
eis3guys
As a REALTOR for 21 years, I would NEVER use my commission to "save" a deal.  We are professionials and are entitled to keep the money we earn.  If the agent had kicked in the money, he/she would only have enabled his client to purchase an over-priced home.   In addition, we don't need to "buy" our clients off.  If they can't afford it, they can't afford it.  That's the way life is.  As my business is strictly referral based, I build my reputation on high quality service, not having to "buy" my clients.  Perhaps it's time to think of the value you provide your clients instead of being a charity!
May 13, 2007 09:45 AM
#2
Joe Harris
Morgan Financial - Melbourne, FL
Ardell, why should the buyers agent have to drop his commission so his buyer can get a house that is out their price range? The seller was playing hardball, and lost. There are way to many houses on the market to deal with a seller/agent who wants to play games.
May 13, 2007 09:49 AM
Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
Overcome the emotion....guide your clients...if the house can today be gotten for significantly less than 450k, you owe it to your clients to try and secure that deal...
May 13, 2007 09:59 AM
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy
I agree I know it is difficult to overcome emotion but if they can get the house at their price, they will thank you later.
May 13, 2007 10:13 AM
Kyle Hogan
My Florida Homes For Sale - Melbourne, FL

Ardell,

Drop my commission? The seller is only paying one side, the buyers side, and it's only 2.5%. Anyone in the practice of reducing your commission to make a sale truly is a "discount broker". I will find them a house. Patience is a virtue, devaluing your profession is a fault.

May 13, 2007 10:33 AM
Anonymous
hogan scarpe

I impressed reading your post,thank you for sharing.

 

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Jul 17, 2011 08:57 PM
#7