I think terms like the one above just mean, "make me a stupid offer, I'm exhausted and burned out from trying to sell my home, just throw something at me and maybe you'll get me at the right moment and I'll say yes, SOLD!" This is a prime example of 'not knowing where someone's head is on a particular day. Maybe they're going through a divorce, probate, difficult financial times, who knows.
In a perfect world, a home listed for $500K will sell for $375-400K. I think that's a good starting point, about 30%.
Scott Miller, Realty Associates, Boca Raton, FL
"I know the list price is too high - the sellers won't listen to me (their agent) - they really DO want to sell, so Please Please, Please make an offer, and let's see if we can work it out! PLEASE - just put it on paper and let's talk!"
Work with a good buyerâ€™s agent, preferably a RealtorÂ®, in your locale to get the best information about a particular property of interest. If the seller is represented by a competent listing agent you should be able to get a good sense of what offer is appropriate. While you are 'just looking' start interviewing agents in the town where you intend to buy. then, when you become a serious buyer, you will know which agent you will hire.
Unwavering Commitment to Service
"But how low can you go?" If you are considering making an offer on a property your best bet is to have an agent prepare a market analysis, evaluating the the properties that have sold, are under contract and available. With this information and their expertise, you should be able to determine your offering price.
Your Savvy Realtor
The Pecora Group
And the last time I checked, the agent has a responsibility to present all offers.
There is no one meaning for it. It may be overpriced, and the Sellers can't seem to bring themselves to price it in the market. They don't want to commit that low in hopes that someone might come in over market price. Or it could be, as said before, that it is expiring and the agent is desperate to get something going while they have a chance to sell it. It could indicate a level of desperation on the Seller's part. I won't put that in a listing without the Seller's permission, or unless they direct me to do so. Is the property in short sale? Maybe it is a last ditch effort to get the process started and they need a contract to do it. I find it means little in this market. I do like to see that in some cases, because I do get asked if I think the Sellers would accept a lower price on listings, sometimes. I figure if the buyer is willing, it's worth a shot if they really like the home. I find for the most part that it is useless in a Buyers' market. Pricing the home as low as a Seller is willing to go and cutting to the chase is the best bet. The home doesn't continue to drop in value, it doesn't become stigmatized on the market, and the Seller realizes the highest rate of return for a quicker sale. The idea that a buyer "will make an offer" on an overpriced home doesn't work in a Buyers' market. There may be dozens of other choices on the market and Buyers start in the bottom of their range and work up. With all of the homes to choose from these days, they are almost sure to find their home before they reach the top of their range. They also don't have to get sentimentally attached to a home they may not be able to afford. Even though they are motivated - they still may be unwilling or unable.
Motivated Seller quite simply means time is a factor more than price.
There is no hard set rule for how much of a discount you can take.
However 5% may be reasonable. Shooting for more than that is not realistic.
You stated motivated seller on a high list price,....
In my opinion it means the agent is motivated and not the seller.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
At the same time, many of these sellers really need to sell. They don't have a lot of experience in selling homes and they aren't sure whether to trust the agent because they just met them. They may even be convinced that pricing high is the way to go and their agent would get them the price they want...or at least an offer... if the agent was "any good".
What would you write if you were their agent?
The agent representing a buyer in this situation should do a CMA (comparison of prices of similar homes in area). From this, the buyer should write a reasonable offer. The agent should then call the listing agent and make an appointment to meet with the seller and their agent and present the offer. This consists of talking up the buyer's qualifications and why they like the property,, presenting the offer and using the CMA as support for the offer & the buyer's hesitancy to go higher.
This is s a typical conversation that results in the listing agent placing "motivated sellers - present all offers" in the listing. Some sellers will respond to a low offer defensively. The most serious sellers will listen to market feedback and make price adjustments accordingly.
Good question! A few year ago, it often meant that one could acquire a property for a signicant amount off asking. Today, I am finding that I can puruse one "motivated seller" who is willing to negotiate substanti\ally off list, but more often than not, I'm find that "motivated sellers" mean little and this verbiage is merely a avenue within which listing agents get offers to be written. That is not to say that there are not truly "motivated sellers" out there, but again more often than not I'm finding myself as an RE Agent scratching my head over this terminology.
Love and Peace,
Francesca, ePro, SRES
So to the "motivated sellers" out there I say this - take a step back and review your price. If you are priced correctly, you've said it all. If you are not, then adjust now. In either case, your price will do the talking.
Unwavering Commitment to Service
First, have a Realtor do a CMA to determine how much the property is really worth. That establishes the ceiling--the most you should pay.
Second, take the claim "motivated sellers--present all offers at face value." Maybe it's true. Maybe it's not. But there's only one way to find out how motivated they are: Make an offer.
So, your question is how low can you go. Not how low below the listing price. But how low you can go beyond what the CMA suggests is the market value. After all, the sellers claim they're motivated to sell.
Investors consider a seller motivated if an offer of 35% or more below the after-repair value, after subtracting for needed repairs, is accepted. Example: A home would be worth $500,000 after being fixed up. So you drop the number down to $325,000 and then subtract needed repairs. Say it only needs $10,000 in repairs. An investor would offer no more than $315,000. If the seller accepts, that's fine. If not, then the seller isn't motivated enough.
That's just a rough guide and in "retail" real estate the number to determine if the seller is motivated would be somewhat higher. Maybe, in the example above, $375,000-$400,000.
No one's a mind reader. (Well, except perhaps for the Amazing Kreskin!) So it's difficult to gauge whether the seller is really motivated, or whether the seller can even afford to accept a low offer. Therefore: Don't worry about it. If the listing says the seller is motivated, all you can do is assume the seller's motivated.
You may actually run into some resistance from your own agent, who might be embarrassed to make such a low offer. Don't worry about it. If you don't make an offer at all, your agent has no chance of earning a commission. If you make a low offer, at least there's a chance.
Hope that helps.
How low you go is really up to you. Just don't be surprised if the sellers come back with a ridiculous counter offer. If they are priced too high and are saying they are motivated and present all offers, what they usually mean is you can present a low offer, but don't count on me agreeing to it!
Did that listing realtor realize that the buyer does not NEED to buy a house? They could rent.
Should a buyer go into such a realtors office and say" I see you have a buyer who does not need to sell. I do not need to buy. Can you introduce us so we can have coffee and chat about not moving anywhere?"
And what is the right price? Only the buyer knows - yes the buyer. Although the seller asks the price, the buyer sets the value. Today's buyers know value and look for value. However, a buyer should never be disuaded to making an offer on any house. Whether it be an overpriced one or not. A seller's motivation changes everyday and so does their selling price point. If it states 'motivated seller-present all offers" then present all offers.
To all you sellers - consider underpricing your home if you are so motivated. You will produce interest and a biding war. Which, by the way, will bring your final sale price to marlket value. And isn't it better than no offers at all.
"It doesn't mean what kind of offer you write....just write an offer and I'll look at it!"
"Don't be afraid to offer less.....much less...I'll still look at it"
"Yes, i know it's priced higher than where it's supposed to be....make me an offer I can't refuse"
Like the other responses have already stated, it means the seller likely overpriced the home to begin with; has taken several price reductions; viewings have dwindled and it has lingered on the market. The seller is ready to move on and also ready to make concessions. These may include price, terms and personal items; such as window treatments, washer, dryer, etc.
In our local Somerset market, since the end of the Home Buyer Tax Credit program, we are starting to see an increase of housing inventory and this is putting pressure "motivated sellers" sellers to make price reductions. With mortgage rates dropping recently, now is an excellent time to make an offer.
How low can you go? That will depend on how much YOU really want the property or if you are are shopping the deal. The seller has opened the door to consider all offers. Be forewarned that a property that is priced to give exceptional value may elicit multiple offers and drive the price upwards.
Best of luck to you in your home search.
Our MLS is filled with these words. Come on Realtors (and Sellers), break out of the herd and come up with something different. (Or maybe, try cutting your price to way below your competition).
It can mean what it says, but if it's true, marketing agents should be more specific regarding the real reason behind the motivation.
Short Sale, Divorce, Loss of Job, Transfer, etc. would motivate more buyers and agents to look hard at the home, but the question is priced right in the first place should come first. I agree with your statement that most the time when this is the headline, it's priced to high for the marketplace.
Different motivations can create different negotiation tactics. If it's a short sale the bank is going to decide the sales price anyway, so lets get that information out on the table to start with.
If it's a divorce, has it been finalized or are they still negotiating to determine who gets what? If it's a job transfer, when do they have to move?
A listing agent needs to get approval to share this type of information with the general public, but if it's going to help the seller sell it's part of the listing agents job to educate the seller on what works.
It's also part of any buyer's agent job to determine the same thing so they can make recommendations to the buyer on what to offer. Just saying your motivated doesn't mean a thing to me.
Allison, keep asking questions! Your doing the right thing.
George Martin, Jr.
Sun Valley, Id
present all offers = bring in your low ball offer and the seller will counter, then play hard ball.
Allison, find out per property what are the comparables.
What are the attributes, and location. Then one can adjust price based on similar properties.
There is no set formula, it is based on # of homes available, trends in sales ( UP or DOWN),
number of homes in Foreclosure, number of homes underwater etc.
Work with a Realtor who can guide you as a consultant.
As you have read motivated can be used in many ways. Is it Somerset in Estero / Ft. Myers FL that you are looking at? If so I may be able to assist you please contact me at 239-898-9933 and I can provide further information.