Okay, what is it with buyers today who think they can low ball offers? I mean ethically, we show them the comps, explain why the property has been reduced, show the property, pull the tax records, the plats, and talk with the listing agent in depth. We even hint to the listing agent about any former offers and check out the history of the property to justify why a certain price is right.
Does any of that help? It seems that buyers who think the housing market is a "free for all" are coming out of the woodwork. I realize our duty is to write the offer, but we cross that fine line of being pegged as the ridiculous agent who presents "cheap" offers. Or what could be worse, is having the listing agent ignore your offer, or return the contract with big bold letters, R_E_J_E_C_T_E_D!
Now, I would never do that to another agent, just because, I have self control and given the market I know most agents are being pressured by their clients. Truth be known, I had an agent in town do that to me, and delivered the REJECTED offer to my office. I couldn't figure out if he was trying to make a statement or didn't have the spine to tell me to my face how it insulted his seller. I would have preferred the later, for I would have loved to explain my frustration.I am wondering how many other agents are getting fed up with the low offers and just walking away or redirecting them to find another discount brokerage. What would you do?
6 comments:
Maybe when submitting a contract you believe could be insulting to a seller you might want to put a cover letter that states:
This is an offer the buyer insists I submit and by law I must abide by the terms my buyer insists upon.
If you do not accept this offer please give me detailed information as to why so I can inform and educate my buyer.
Something along those lines so that you let the listing agent know you are not the idiot trying to put the screws to the seller.
Most agents today know that it is not the buying agent recomending these ridiculous offers but the greedy buyers.
Dear Kim,
Now that's an idea, however since I represent my client and have fudicary duties; that (letter) would place me in violation with the Real Estate commission as well as my broker. With that said, thank you for thinking how to lessen the blow from a "Are you Kidding with that Offer" stare from the listing agent.
"greedy buyer"?
Why do you think that? Maybe it is more accurate to think that the buyer wants/needs a house, but is afraid that housing prices will continue to tumble, and if they don't low-ball, they will be loose $50k in equity in their house during their first year of ownership.
Dear greedy buyer,
That is certainly one way to look at this "waiting game" and soooo many people are in that same mindset. I agree you can wait and see, and hope the house doesn't sell that you have your heart set on.
If you're buying a home to live and stay there for the long term, buy when it is at a price YOU are satisfied with. Might prices still decline? Sure. Might they go up? Sure. The only way to be confident in your decision is to make sure all the factors that are important to you are there.
None of us have a crystal ball - do the best with the information you have, and don't kick yourself once you've drawn a line in the sand!
...as a buyer, looking in QAC, MY frustration is not finding QUALITY, especially waterview/waterfront property! It seems everyone thinks that since their property is within smelling distance of the water, it qualifies as waterfront and therefore should demand a 35-35% premium. I feel $800k for a 3 br, 50yr old cottage on 2MLW frontage, in poor condition is not quality. If sellers (and their realtors) get realistic and priced those houses at true value, then the some of those "low ball" offers might not in-fact be unrealistic.
Dear Ed,
I apologize, for just getting back to your comment..I had unexpected company. I am with you on your housing scenario of a cottage priced at $800K. I am assuming it is on Kent Island and is on a very small lot. I just sold a house that was a renovated 3 BR cottage on the water with 3MLW and had a new pier/boatlift for $519,000 on KI. I would love to go for the challenge you are speaking of. I would be happy to speak to the listing agent and negotiate on your behalf. Yep, some realtors need to keep their ear to the ground and doublecheck the comps weekly to obtain a true reflection of the local market. If you are not working with an agent, I would be happy to help you find your waterfront home, in fact I previewed one yesterday- and I bet you can come in around the low $500's. Good Luck.
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