Home Selling in 30340>Question Details

Scott, Home Seller in Atlanta, GA

I have a house for sale and i've gotten quite a few offers, but they are all coming in at $40K to $60K below asking price. There is no basis

Asked by Scott, Atlanta, GA Mon May 24, 2010

this kind of offer, as houses are still selling in the area for around what I am asking. It seems that they are just taking a % of the asking because hgtv told them to or looking up what i paid and adding commissions. Any ideas on what to do?

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25
Atlanta is filled with foreclosures. I am sure they are impacting everyones idea of what prices should be.

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.
6 votes Thank Flag Link Mon May 24, 2010
A "few" offers is better than no offers.

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?
3 votes Thank Flag Link Tue May 25, 2010
Hi Scott,

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
770-714-7077
chuckgreen@kw.com
Web Reference: http://chuckgreen.com
2 votes Thank Flag Link Tue May 25, 2010
Scott asked this question over 1.5 years ago..........doubt very much he is still here reading any advice.
1 vote Thank Flag Link Fri Nov 18, 2011
Have your agent prepare a market report of recent sales in your area to send back with your counteroffer.

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.
1 vote Thank Flag Link Wed May 26, 2010
Perhaps, the buyers have pegged the current market value of your home, and you haven't accepted its current valuation. Have you walked your comps (both the recently sold ones and the current listings)? If not, then you should do so.

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.
1 vote Thank Flag Link Tue May 25, 2010
HI Scott, if you have gotten a number of offers all at the same level, then the market is speaking to you and you would be wise to listen. Remember that it is not where you start, but where you finish that counts. I always recommend to my sellers that they respond to written offers from qualified buyers. It is likely that they are testing your bottom, just as you will test their ceiling as the process moves forward.

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.

Best,
Jeanne Feenick
Unwaveing Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Tue May 25, 2010
Scott - the test of the market, IS the market.

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.

Good luck!
1 vote Thank Flag Link Mon May 24, 2010
This question is 18 months old. The market has definitely changed in that amount of time. I hope you took one of the offers back in May 2010 because the home is certainly at a lower value today than it was in May 2010.
Web Reference: http://englishteam.com
0 votes Thank Flag Link Sat Dec 3, 2011
I am suggesting that Trulia removes this question. Someone trying to sell shoes, too. I wonder what's next.
0 votes Thank Flag Link Sun Nov 20, 2011
Mikel - just out of curiosity - do you realize you are addressing Scott, who asked this question way back in May of 2010??
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.
0 votes Thank Flag Link Sun Nov 20, 2011
Scott, most often when we hear this type of lament from a homeowner it has to do with an owner that cannot see their own home objectively. The fact that multiple offers are coming in at the same price indicates that is the market value.. not what you perceived it to be. Are you thinking that a sane buyer would rather buy a comparable home for $50K higher than yours if they are 'worth' the same? The truth is that the home is likely not worth what you think ... very common.
0 votes Thank Flag Link Sat Nov 19, 2011
Are you selling By Owner or with an agent?

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.
0 votes Thank Flag Link Fri Nov 18, 2011
Dear Scott,
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.
0 votes Thank Flag Link Thu Nov 17, 2011
Scott: Did you sell the house? If yes, how far off were the earlier offers compared to what you eventually accepted? Based on sales of listings in 30340, I am going to guess you ended up accepting an offer that was at least 60K less than your original asking price. Sitting on a listing price that is too high hurts your ultimate sales price in my opinion. It is better to price your home accurately when you list and then take a hard look at the early offers. The market is telling you the value of your home.
Web Reference: http://englishteam.com
0 votes Thank Flag Link Thu Nov 17, 2011
Lots of good answers and quite a few thumbs up to give out, but Dan's first answer is solid.

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.
Web Reference: http://intowninsider.com/
0 votes Thank Flag Link Thu May 27, 2010
Buyers are always trying to get that low with "FSBO." But if you have a Realtor, the keyword is Negotiation.
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.
0 votes Thank Flag Link Tue May 25, 2010
First I would need to know if you have the home listed with a qualified real estate agent- if you do, then your agent should be able to educate the buyer on the values and the qualities of the home. They should be able to qualify to see if you even have a “real” buyer to begin with. If you are a For sale by owner – then the job is harder- because buyers and sellers have a hard time dealing with each other on value issues and hard core realities. It’s more difficult for an owner to convince a buyer of the values and realties of the market. I am a 20 plus veteran Realtor and I own a lot of property myself, so I know what it feels like to be a seller and a buyer in this market. I have realized one thing in over 30 years of buying and selling – 3rd party validation and negotiation is always the best, even for my own selling and purchasing! Good luck!




Theresa Kincaid
Coldwell Banker
400 Park Avenue S., Suite 210
Winter Park , Fl 32789
o: 407-647-1211
c: 407-310-0339
f: 407-774-8458
email: theresa.kincaid@floridamoves.com
0 votes Thank Flag Link Tue May 25, 2010
Hi Scott,
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.
0 votes Thank Flag Link Tue May 25, 2010
Scott,

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.

Regards,

Rick Payne
Keller Williams
0 votes Thank Flag Link Tue May 25, 2010
Dear Scott,

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!
Janette
0 votes Thank Flag Link Tue May 25, 2010
Scott:

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.
Web Reference: http://www.RealValuator.com
0 votes Thank Flag Link Tue May 25, 2010
Assuming you are represented, Scott, what does your agent say? Any advice or offers of help in this forum or any other should be tempered with that question first. If you are not currently under contract, please forward me your property address and I will share my thoughts with you on where and how the house could best be marketed in an attempt to achieve the price you are seeking. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.SellsRealty.org/
0 votes Thank Flag Link Tue May 25, 2010
Scott - I would recommend trying not to be discouraged by the initial offering price--in this buyer's market, almost all buyers will start at what most sellers would consider a "low-ball" price to test the waters, but I've experienced situations where buyers actually came up quite a bit if they are truly interested in the home.

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!
0 votes Thank Flag Link Mon May 24, 2010
Scott:

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.

Kris Holt
Solid Source Realty, Inc.
0 votes Thank Flag Link Mon May 24, 2010
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