Straight Talk About Making Low Offers
This is a tough subject to cover and not be condescending or insulting to buyers or buyer's agents but I have to vent. I received a call yesterday from an agent inquiring about one of my listings. She called just as I was about to sit down to dinner and even though it was 6pm on a Sunday and I was about to sit down to dinner, I answered it. The buyer had already called me earlier in the day just before church....yeah this pair has great timing.
The buyer had already let me know he thought the house was overpriced but the land was what he was interested in. Needless to say I wasn't getting into that argument with him because I know the house is priced correctly. So the agent calls and asks about the lot and what's included in the sale. Then she begins to tell me the house is too small and is overpriced and wants me to provide her comps for my price!!! Wha Wha What?? So you want ME to do YOUR job is that it??
It's one thing to interrupt a man's dinner with his family but to then insult his intelligence and his seller is quite another! She tells me the buyer has a large family and the house was not large enough and he would have to build on. Oh yeah, and the house has vinyl siding and he would have to replace that because he doesn't like vinyl. This among some other RIDICULOUS comments sent me over the edge. I told her that if her buyer needed a larger house then show him a larger house, and show him a brick house. She obviously didn't know or just didn't listen to her buyer's wants and needs because she was way off track.
Later in the evening she calls back to say that her buyer is interested in making an offer and wants to give me a verbal offer. She begins to tell me he is a cash buyer and can close quickly and that's when I said..."uh oh" here comes the lowball. After about a minute or two of her stressing to me that it would be a quick close I interrupted her....."I've already had low offers that have been rejected so why don't you just tell me what he's offering and I'll tell you if it's in the ballpark, that will save us some time". She then tells me he wants to offer $70k less than a list that is already $70k off the last appraisal!! This is not a bank owned or short sale property but I'm starting to think she thinks it is. I told her I would present it because I have to but there was no way it would work.
Here's where it gets funny! She tells me I should talk to my seller and explain that this cash buyer can close quickly and she would be crazy to turn away a buyer like this!!! My response was "So you're telling me I should just throw my listing contract out the window and start representing your client as a secondary agent"? Her response was to say that she knew how buyers were scarce and since the house had been on the market for a couple months the seller should consider it. That was the end of that conversation.
Well, after receiving the original offer in writing we countered a couple thousand less than list and after a few counters back and forth it was really becoming annoying.
What is my point with this story?Buyers make sure you or your agent does the homework when making an offer on a property. If you make ridiculous offers you more times than not put yourself in a TERRIBLE negotiating position. This is the case with bank owned properties too. The banks aren't staffed for the kind of volume they've been dealing with lately and when you send in your lowball offer they tend to put it on the back burner. Also remember they don't have to respond at all so if your offer doesn't stand out you're less likely to get a response. When making an offer on a bank owned property, your best offer should be your first offer. Make it as clean as possible, very few stipulations because more than likely the bank's addendum will override them anyway. If you're an investor and purchase several properties a month and have multiple offers in on multiple properties this doesn't apply to you.
There will always be someone that thinks you can buy a $500,000 home for $250,000 and yes those deals are out there but they are very few and far between and are usually gone before they hit the market!! If you're a buyer purchasing your first home or a move up buyer looking for more space, be sure to hire a professional Realtor to help you negotiate the best deal.
Steve Rider REALTOR with Keller Williams Realty Lanier Partners Braselton Ga, selling homes in Winder, Braselton, Dacula, Lawrenceville, Buford, Grayson, Loganville, Monroe and surrounding areas of Barrow, Walton and Gwinnett County Georgia. Go to www.SteveSellsGwinnett.com to see my featured listings or search for your new home.
If you're looking for a home in Northeast Georgia contact me either by clicking on the email link or call me toll free at 800-765-0460 or 404-663-7063 direct. I have over 5 years experience selling real estate and I'm a life long resident of my coverage area.
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