What to do about low offers? You really only have 2 options both filled with undesirable results.
1 accept the low offers and get free of the house
2 reject all offers until one comes along that is large enough to be acceptable to you.
The problem with #1 is you do not get the price you want.
The problem with #2 is you may never get a higher offer and offers could drop even lower.
You can always try to negotiate higher offers from the low ones. Maybe someone will come up to only $15k (or even closer) short of your asking price.
Maybe your house has some problems others do not. bad neighborhood, corner lot, highway noise, high power electric wires close by, railroad tracks, a cemetery, and other issues other higher priced houses do not have. Maybe not. It is much more of a buyers market and the remaining buyers can afford to be picky and cheap. What you do is a tough call. It is one you alone have to make.
If they're in the same range, then there's your common denominator: you price is too high. And that, my dear Scott, is the biggest reason why properties don't sell.
It doesn't matter what you think it's worth. It only matters what the buyers are willing to pay for it.
Did you counter the offers? Did they counter back? Did you get into any kind of back and forth counteroffers? When buyers do this, there is obvious interest and seriousness in the offer, so leave room for negotiation.
How's your presentation? Believe it when they say that staging can reap a higher price for a property that shows well. After all who would want to buy a smelly, messy, poorly-maintained house unless it's a bargain?
Congrats!!! you have received multiple offers on your home. Many sellers are getting none. Get with your Realtor and go over the sale to list price ratios for your area. Depending on your price point a 10% drop from asking price to actual sales price is not outside the norm for your area. Dig into the variables that differentiate your home from the others that have sold recently.
If you are not represented I would be happy to meet with you and determine what needs to be done for you to achieve your goals, but it is impossible to give you accurate advice without seeing your home first.
Chuck Green, Realtor
Keller Williams Realty
This will justify the price you are asking and give the buyer some data to compare. This is something their agent may not do for them so you and your agent should be proactive.
I'm sure you will be able to find common ground with someone who places an offer using this strategy.
Also, be happy that you're receiving offers. I know of sellers with listings overpriced by $20K who didn't get any offers. Why not have your agent contact each buyer, who made an offer, and ask for some feedback? You might find that 1 or more of those buyers will be willing to pay a higher price provided you offered to sell with creative financing.
I notice that a lot of sellers (and their agents) complaining about buyers making low-ball offers; they falsely assume that buyers are only looking for deep discounts. Although deep discounts can be nice, buyers are MORE concerned about the VALUE proposition--not the price--of a property. Whether the economy is in recession or otherwise, some customers are still buying Gucci bags, Mercedes Benz cars, Rolex watches, Smith and Wollensky steak dinners, Armani suits, etc. They're willing to pay more for the aforementioned items, because of the perceived value.
Scott, you can't sell them on what you value most about your property. You need to sell them on what they value most about your property. Find some ways to add more value to your property. The creative financing coupled with 1 or more buyer incentives will help to go a long way. You don't need to get 50 million people excited about your property; all you need to do is get 1 person/couple excited enough to take the plunge. Go back to all of those buyers who made an offer, and start negotiating. Find out what it will take for at least 1 of them to seal the deal, and then deliver on whatever that is.
I just went through a similar situation - multiple offers all in a very tight range of one another, and all similarly disappointing to the seller. Informed buyers will have access to comparable data on recent sales. The fact that they are coming in at similar levels is the best feedback you can get. While we all do our best to price a home when we introduce it to the market, the fact is that the feedback you get from showings and more importantly from offers, is the real deal, the real world. Don't allow these buyers to get away, respond and try to negotiate to a level you can accept.
Another important point to consider is appraisal risk. If your selling price exceeds the appraised value, you may well be negotiating the price again to keep the deal on track.
Listen to the market Scott - it is speaking to you.
Unwaveing Commitment to Service
You have gotten quite a few offers - all in the same range?
The market is talking to you - if you don't want to listen, that's your choice. It's highly doubtful that "quite a few" buyers have all listened to the same show and followed the same advice.
It seems more realistic that they are offering what they perceive to be the value of the home.
I always tell my sellers that it doesn't matter what I think their home is worth - or even what they think it may be worth...............it only matters what the buyers say it is worth.
Ideas on what to do???
My advice is to reconsider your position, and seriously look at the next offer that comes in.
Do you seriously think he is still here looking for answers?
The date the question was posted is located in a light gray font under the bold part of the question.
Most FSBO (for sale by owner) sell less than when listed with an agent. Even after commissions are paid..
If you are working with an agent have the agent pull you recent sales in the area. This will tell you give you an idea why?
By owners properties sell less because most buyers think they can reduce the price by at least commission you are not paying and then a little more cause its by owner...
When priced right you should receive a full price offer in a short amount of days..
The link below may help as it will tell you what your home is worth any where in the US.
There might be a basis for these offers you don't realize yet. Buyers are looking at Short-Sale and foreclosure properties which are normally what they are basing their offers on. It's also possible they are deducting for things that need to be repaired, though, I'm not sure that is the case here.
I'll just ask you - Scott: How does it feel to be the highest bidder on your house?
One more - how far apart are you from your timing goal?
Your best feedback is these offers you keep denying - don't screw this up.
There should be no fear to counter all offers. Keep countering. If anyone likes it, they will see reason with your counter. Just counter, or get a Realtor to sell it.
400 Park Avenue S., Suite 210
Winter Park , Fl 32789
As you did not say whether you are represented or not, I will assume you are not represented as you would have directed this question to your Realtor. Since you seem to be selling the house yourself, you need to realize that any buyer see this as an opportunity to get a greatly reduced selling price because you are not having to pay both listing and buyer agent commissions. Also, since you do not seem to be represented, you may have overlooked some of the comps (foreclosures and short sales) in your area. These comps will greatly reduce the assumed value of your property and will be the comps the mortgage companies look at when deciding how much they will loan the buyers for your property. As the other agents have said on this forum, buyers are out there looking for exceptional deals. Just counter the offers and see what happens. You may be surprised at the response you get once you start to negotiate. If I can be of further assistance, please do not hesitate to contact me at the web address below. Good luck and start negotiating.
Many home sellers today are facing this same situation. We are in a buyer's market and most buyers will submit initially low offers. However, that doesn't mean they won't bring their offer up to a more reasonable level. Remember, when someone really loves a home they will negotiate.
My recommendation would be to have a Pre-Appraisal done on your home. This will give you a better comfort level about your asking price and show you the current neighborhood value. I do this for FREE for all my clients .
Hopefully, I have answered some part of your question. If you would like to discuss further please give me a call at 678-427-5512.
Welcome to the new "norm" . Buyers are "testing" the waters to see if you are in trouble and need to sell. It's not "personal" . They're looking for a "DEAL".
You mention houses still selling in the area "around" what you are asking? If you are not accounting for the foreclosures and short sales "around" your area thinking ".I'm not one of those", you are kidding youself. My suggestion is pay for an "Appraisal" to see if you truly have your house priced with the market. Otherwise, you could be waiting for a very long time. Who really knows what the real estate market is going to do...have we've hit "bottom"?
Best of Luck!
Are you taking into consideration ALL the sales around your home? Bank owned sales can weigh heavily on home values. RealValuator.com is a free site that let's you see all the transactions around a specific property- pre-foreclosures, foreclosures, sales, and bank owned sales. Try searching your address there to see what is happening in your neighborhood.
At the same time, as others have said, you may want to take a hard look at your home through a buyer's eyes, and make sure that you've really got it priced appropriately, as well as staged to showi as well as it possibly can. If you need some ideas, one of my friends is a top Atlanta stager who has great before and after photos on her website, http://www.HomeStagingAtlanta.com Also if your realtor holds an agent caravan, they can find out what other realtors think of your home, (including the asking price), which is invaluable information.
Best of luck, and don't give up!
A lot of what Dan said is true. Market value is what someone is willing to pay for your home, not what you want them to pay. At this point it seems as if there has not been a buyer willing to pay what you are asking. So you must ask yourself...why? What is different about your property from the other properties? How were the other properties marketed? Were they exposed to a larger pool of buyers? I would be willing to help you with these questions if you would like. Let me know if you would like some assistance.
Solid Source Realty, Inc.