LOWBALL OFFERS...

I would tell the sellers to not take it personal, you can't blame the buyer for trying but I would ALWAYS encourage a counter offer from the seller.  maybe the buyer just needs to see the sellers motivation.

Ken - don't know your market but if you priced it correctly then I would use your MLS list to sold price percentage to guage the offer - sounds way to low to me but what do I know I'm just a REALTOR!

Kathy Carson - RE/MAX 1st Olympic - Lynchburg, VA

I sure would not blame the seller for being offended and not responding to the offer.  Unbelievable!

HI KEN!  Just been following the thread -- great stuff!  I am in the habit these days of telling Sellers as long as the offer isn't a request to "quit claim" the home - we can work with it.  Adds a little humor to something that can be insulting. Good luck! -- Gabrielle

Something over 200 grand below asking might even come off offensive to me. If it were the only offer at the time, and considering how long this listing had been on the market, it would simply be noted to the seller "The only way to keep the negotiating going is to respond"....respond doesn't necessarily mean yes. Most buyers in this current market know that they are going to have to list price their homes A BIT below it's actual value in the first place, so even if there is a little "negotiation ping pong" going, there is SOMETHING negotiable that the seller would more than likely accept if it's not the full asking price. Even though the potential buyer is opening up pretty low, as long as they are willing to continue going "across the net" with the seller, I would imagine there is something acceptable that could be reached.

Looks like you got some heads spinning.  Especially yours!  Keep it together is the ultimate for you and your clients.  I don't think a low ball offer is a bad thing.  Only a message sending one thing out, negotiations.  Ok so you got hit below the belt, big deal.  Counter with a higher offer than your listing price if your clients were insulted, if you want to insult back.  But, keep in mind, your LCDORA and keep your personal feelings aside, and get the job done!  I have seen really low, and I have seen really ugly low.  But put yourself in both shoes, and sit back, and think????

I always tell my sellers, if one comes in, that means I am doing my job to make the property noticeable which makes them think I am doing my job and makes me feel good.  Time will only tell.  In the market we vs. you is impossible to judge, but the repo hunters are out, and will be for a while, and you can't neglect there patience of trying, but your patience of being a great agent is the key.  Relay the messages without your personal feelings as you know the CMA and you know what you would buy there property for, so I am sure your offer would be lower than the CMA you gave them which could also be insulting.  But, its there ultimate decision and your job to get it done.  So good luck on this one, and patience is vertue and you will prevale!

An offer is just an offer.  Respond to all of them and see where they lead.  Sometimes they lead to a sale and other times the trash bin but at least everyone is clear where the deal stands at the end.

I have certainly seen some low ball offers, but I would have to say that I have not come across one like that just yet. Of course, I would counter the offer, but I believe that one may be asking a bit much.

Ken, you should call the buyer's agent and say, "We acknowledge that we received your offer and our seller will not be responding to the offer, for obvious reasons." while you chuckle into the phone.  He'll get the hint.

Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice

Regina P. Brown

Ken,

Is this your listing? http://www.zillow.com/homedetails/charts/69072541_zpid,5years_chartDuration/

If it is then please note that although unemployment seems to be low http://zipskinny.com/index.php?zip=60563 , zip code 60563 is seriously trending down.

The following condo seems to be in the same complex.

how does this listing compare to yours? http://www.zillow.com/homedetails/charts/69072545_zpid,5years_chartDuration/

It is 99 square feet smaller and was sold for $269,000 on 11/26/2008.

Your seller may be upset that their condo had hit $400,000 between 2004 and 2007, but my clients are having no difficulty buying properties at the prices where they were between 1998-2002.

I have been using the phrase, "Unfortunatley, this is 2009, NOT 2005" alot with sellers and seller agents lately. You might want to do the same. :)

Good luck with the property, though. I commend your fiduciary efforts on behalf of your client. That is exactly what an agent should be doing. However, based on the way the market is, if it sells for more than $250,000 then I will assume that housing is coming back up, and will donate $10 to your favorite charity.

Lee Ali

BankFreeInvesting.com/blog

Lee Ali is the author of "Crowdfunding: The Solution to Eliminate Booms and Busts in Real Estate Forever!"

PS: This post was NOT written to insult anyone AT ALL. :)

Ken, thank you for your kind comments.

My research team does this kind of research for our clients all day long with properties across the nation.

Like everyone else we would like to see prices come back up BUT we are not going to pay high if we can get them at lower prices.

Good luck with everything. I hope that a nice price sale does materialize for your seller.

Lee

Since we have to present the offers, its OK.  Hopefully your sellers will choose to laugh instead of a different emotion. 

I would imagine that some day you will write a low offer because your client wants you too, and they might get it.

Peace,

David