Home Selling in 48302>Question Details

Sherry, Other/Just Looking in Birmingham, MI

Is it absurd to think you can get asking price?

Asked by Sherry, Birmingham, MI Thu Sep 4, 2008

After listing my house below market value based on CMA, and then after 30 days lowering price 25,000. I have an offer. Low ball. Basically took mtg bal and added most of commission on top. I want to counter at full price with a sellers concession of 3% towards cc and pp'ds.

I know the midset is to bow down at the foot of a potential buyer because you dont know where the next one is. But when is it going to be inappropriate to insult sellers again?

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Wow! What a great question.

First answer is yes, someday it will come around, again, and it's going to be very, very painful for buyers that have gotten used to sellers worshipping at their feet.

Now, here's how to get full price. Certainly full price, less concessions.

A long time ago, in a galaxy far, far away – actually in our SE Michigan market less than 5 years ago - a buyer would be standing in the kitchen of your home that just came on the market and they'd be worried. They love your home and are excited about it. While they've only seen a few homes (and there are only a few more available) they really feel good about your property. They'd be worried that if they didn't take action quickly they would lose your house because another buyer would buy it out from under them. They would know that if they didn't act quickly someone else would get the property. And if your home was priced right and really attractive they'd probably end up in a bidding war, paying more than asking price. And the buyer was worried about that too!

They felt fear.

Ok, so how does this fantasyland galaxy far, far away apply today?

The key is the fear. Right now it seems like the sellers have all the fear. The sellers are the only ones who are worried. And the buyers love every minute of it.

The fear must be transferred back to the buyer. The buyer must be worried about losing your property - just like old times. They've got to want your home and know that, if they don't take action quickly, someone else will buy your property! Sure maybe they won't be as worried as they used to be, maybe there may not be a bidding war but they have to feel worried about losing your home all the same.

The coaching you get from your Realtor is more important today than it has ever been before. If you price your home aggressively, stage your home for maximum impact and market your home so its benefits are clearly visible you can regain the strength you feel you've lost. Today's sellers have to get back to "worry pricing" where the people worried are the buyers.

Hey, I know this may sound crazy or impossible. In a sea of listings why would any buyer feel this way about a listing? But let me tell you something; in this market until a buyer feels this way about a listing they won’t do anything - other than this lowball crap that drives everybody crazy.

When your listing agent thinks your home is a fantastic listing you're close.
When the other agents at their office think it's a great listing you're really close.
When 3 out of 4 buyer's agents that show your home say your home is a great listing you have power.
Force the buyers to take action or fear losing your home and you win the game. You sell your home when others around you fail.

The question is can you afford to list it aggressively. Will you pay a home stager and then do what they recommend? Will your agent market the home correctly?

In your best, "Yoda" like voice say, “upon these things much will depend".

Take heart! It can still be done!
5 votes Thank Flag Link Fri Sep 5, 2008
Sherry,

I would agree with Scott's analogy. There is an even older beginning to this story. Once Upon a Time...
and usually is the opening line in a Fairy Tale.

I suggest basing your counter upon facts. Is your home still in a declining market? Will the value continue to drop one percent a month, like in some subdivisions? Are there homes priced below yours in the subdivision? Ask your agent to provide some facts before responding.
Web Reference: http://mi-living.com
4 votes Thank Flag Link Sat Sep 6, 2008
JR, You didn't respond to what I said. You just stated the obvious about the market. Its not that complicated, and I get that. It is what it is. That has nothing to do about my comment back to you.

My comment to you was about your attitude about sellers that I quoted in my response. You are unprofessional in your comments and you just jump on whatever bandwagon is out there. When the market was a sellers market you loved it and were prob out there putting down the buyers. Of course the Sellers are upset about the house you convinced them to buy high at and now is valued below what they paid. Have a little tact and professionalism.

My comments are about your unprofessionalism as you hide behind your anonymity.
3 votes Thank Flag Link Sun Sep 7, 2008
It's never going to be inappropriate to offer low. Being insulted over a business transaction is a seller's problem, and in my opinion is inappropriate in itself.

I agree with J R on this one. The tables have turned, and sellers are kicking and screaming while their homes continue to depreciate in value.
2 votes Thank Flag Link Sun Sep 7, 2008
"JR SAID":Sellers are now finding out how buyers felt when things were going crazy, but they aren't reacting correctly. When prices were going up, buyers realized they just had to pay more for what they wanted, and they did. Sellers are going kicking and screaming like children, telling us what they WANT to make, what they HAVE to make (because they owe), and how they aren't going to GIVE IT AWAY.

JR. Did you ever stop to think for a moment-- that the Seller's of today, where the Buyers of yesterday??? The Sellers of today, were the buyers of yesterday who HAD TO OVERPAY. AND YOU WERE THERE TO HELP THEM DO IT. Now you are a chameleon and are working for the buyer and knocking all the sellers. Seriously JR. Think about what you are saying.
2 votes Thank Flag Link Sat Sep 6, 2008
Hi Sherry,
I am working on the answer to your last question.
My book will be published soon and I hope it will help you and all sellers.
All the best and hang in there until you find a good buyer.
James Joseph
The R/E Maven
2 votes Thank Flag Link Sat Sep 6, 2008
Funny you ask, becuase this happens every day. I had a seller recently who hemed and hawed at every offer i brought him, the offers really werent that low. he through me out of the house for bringing him an offer $20000 under asking price. in the mean time he got over it and wanted to see a house, he wanted to put in an offer and asked me to write it up $40,000 under as he said he wanted the best deal. The moral to the story is everyone wants their best deal, the seller wants to sell fo rthe highest price, the buyer wants to buy for the lowest price, the seller will go and buy another house and he wants it at the lowest price as well. it never ends. I try to tell my sellers that no matter what the offer i have to bring it them. I also tell them that we are going to spnds lots of money and time to bring potential buyers in and get them to be interested enough to make an offer. i tell them no matter what they offer it is a way to start negotiations. I still get yelled at and hung up on and that seller certainly eventually will sell and be the one making low offers.... so it is part of the real estate world. dont take it as an insult but an opportunity to start negotiations and get to the goal of selling your home.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Sun Sep 7, 2008
But when is it going to be inappropriate to insult sellers again?
~~~~~~~~~~~~~~
I'm sure the buyers will answer "when they stop insulting us by asking us to bail them out of their mortgages and pay the Realtor fee".

It is possible to get asking price if you are asking a reasonable price. If you are expecting a buyer to come along and pay you more than your house is worth, to pay you for what you OWE, rather than what it's worth, you aren't going to do it. The value of a house is not based on WHAT YOU OWE! Sellers are now finding out how buyers felt when things were going crazy, but they aren't reacting correctly. When prices were going up, buyers realized they just had to pay more for what they wanted, and they did. Sellers are going kicking and screaming like children, telling us what they WANT to make, what they HAVE to make (because they owe), and how they aren't going to GIVE IT AWAY.

If you have a potential buyer, you don't need to bow down at their feet, but you should thank God that you even have a chance to negotiate because most sellers aren't getting any offers.
1 vote Thank Flag Link Fri Sep 5, 2008
"When is it going to be inappropriate to insult sellers again?"
LOL, in Ann Arbor with all the homes on the market, any offer is worth considering and countering back again and again until you can come to terms. Nothing wrong with countering back at full price with cc and pp'ds. Many buyers are fishing the first time around and you will not know until you counter back, if they love your home or want a deal.
1 vote Thank Flag Link Fri Sep 5, 2008
Sherry,


It's your house, you can do anything you like ... but I'd stay in the hunt.

I'm not saying take the offer, but come back at a figure that you and the potential won't shutter at ... perhaps offer a 2 year home warranty, maybe pay for their move...


-
1 vote Thank Flag Link Thu Sep 4, 2008
Right now, there are buyers who are offering low offers to test the seller's need or desire to sell. Buyers want a deal if they can get it and sometimes they can. Different areas have different demand for housing and there are many investors out there who make low offers on homes because in other communities they were successful at this. By the way, low offers are becoming less common as the market improves and short sales and distressed homes on the market are disappearing.
0 votes Thank Flag Link Wed Mar 11, 2015
No, it is not impossible to get asking price or even over asking price. If your house is in good condition and in a desirable neighborhood, asking price may occur and sometimes multiple offers on a home result in a sale at OVER asking price.
0 votes Thank Flag Link Wed Mar 11, 2015
They are not trying to insult you, but are just looking for a great deal. If you are not willing to compromise, then simply let them go. I am kind of surprised you did not get any offers in the first 30 days if your home was priced under market value, though. How recent were the CMAs, and did you have a lot of showings?
0 votes Thank Flag Link Fri Sep 24, 2010
a seller need to realize you have to price the home low enough to get showings and garner offers, not too low that you can negotiate because that is what the media tells you and that is what the buyers want to do. however not too high that no one looks at your home. So pricing your home is a fine art in itself. You can get your price in half and you still will receive offers lower than your asking price. good luck with your sale Sherry.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Sep 14, 2008
you're not motivated = broker is working for free.

Why are you trying to sell?
0 votes Thank Flag Link Sun Sep 14, 2008
Absurd--no.

I have sold two Birmingham houses at asking price this year (that I listed).

Still, buyers are negotiating hard in most cases. I would say that very few homes overall are selling at asking price.

Best of luck with your negotiations.
0 votes Thank Flag Link Sun Sep 14, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
But fortunately I dont have to sell.
~~~~~~~~~~~~
A non motivated seller! The only worse is a non motivated buyer. THAT"S why you're so insulted! :)
0 votes Thank Flag Link Sun Sep 7, 2008
"But when is it going to be inappropriate to insult sellers again?"

LOL!! Don't mean to chime in but I had to laugh at that.

I can't really comment on what's going on in your market but in ours, it's pretty tough to insult a seller with an offer.
0 votes Thank Flag Link Sun Sep 7, 2008
Hi Scott. Thanks for your response. Yeah, it is tough out there for all the agents. I dont think we have ever seen a market like this. Geez I wish my offer was only 20K less! That would have been great! But I am negotiating. We will see where it lends up. My house is a 2nd home, and I it has a pool so I priced it agressively to sell during pool season. But fortunately I dont have to sell. My brokers open had very good response to the house as well as the initial price (before I lowered 25K) but if it doesnt sell, thats okay too. I dont blame buyers, its their time.
0 votes Thank Flag Link Sun Sep 7, 2008
Luke, your comments are very profound. (not!)

Having a school-girl comment about the Sellers kicking and Screaming is offensive to myself as an agent to see a fellow agent conducting herself like this.
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I'm sure many agents will be similarly disappointed in the way you addressed Luke as well. Quite hypocritical!
0 votes Thank Flag Link Sun Sep 7, 2008
Sherry

Do not take is as an insult. You would be doing the same thing if the roles were reversed. Is the buyer pre-approved? I would reject the offer and counter. About having a sense of urgency, this all depends on your situation, meaning if you have to sell or if your comfortable waiting for another offer.

- Have you had good traffic at your specific house? (At least 7-10 people have seen it per week)
- Are you keeping on top of the market trends in Birmingham?
- My best question, what is the market telling YOU? Price too high (nobody is showing up)? Too low (too many people showing up)?

These and more should factor in to your decision. Remember, the market could get worse, or better, but nobody knows until 6 months after. Financial analyst on Bloomberg/CNN/MSNBC have no clue until after, no so called "professional" knows.
0 votes Thank Flag Link Sun Sep 7, 2008
There has been a lack of professionalism amoung some (not all) in my profession. The burden of the lack of sales and buyers is taking its toll and lowering the bar and sometimes letting the buyers dictate too much that it does lower the level of professionalism.
~~~~~~~~~~~~~
While I agree with the lack of professionalism, it can be attributed to the period when houses were selling quicker than they could be listed, NOT because of the lack of sales at present.




Having a school-girl comment about the Sellers kicking and Screaming is offensive to myself as an agent to see a fellow agent conducting herself like this.
~~~~~~~~~~~~~~~~~~~~~
I seriously doubt you are an agent.
0 votes Thank Flag Link Sun Sep 7, 2008
Luke, your comments are very profound. (not!)

Anyway, I agree with Sherry. There has been a lack of professionalism amoung some (not all) in my profession. The burden of the lack of sales and buyers is taking its toll and lowering the bar and sometimes letting the buyers dictate too much that it does lower the level of professionalism.

Having a school-girl comment about the Sellers kicking and Screaming is offensive to myself as an agent to see a fellow agent conducting herself like this.
0 votes Thank Flag Link Sun Sep 7, 2008
Sherry said "The Sellers of today, were the buyers of yesterday who HAD TO OVERPAY". No one HAD to overpay for anything. It was your decision to buy at the time and overpay. There were and are other ways to have a roof over your head without overpaying for an inflated asset.
0 votes Thank Flag Link Sun Sep 7, 2008
Sherry, I'm very sorry you don't like the answer I gave you, and I know it's disappointing to hear the truth rather than what you want to hear. I am FOR the truth. The truth is price isn't based on what you want, what you owe, or what it will take to buy your next home. Sellers had it good up until a few years ago, and now buyers have it good, and sellers are upset that they can't just slap any old price on their house and have it sold by the next day. It's human nature for either the buyer or the seller (or both sometimes) to think they aren't getting a good deal. It swings back and forth. We don't force people to buy, we facilitate a sale. We don't set the price and you don't set the price: now and in the past, the BUYERS set the price. Buyers pushed the prices up, and now the buyers are pushing them down. And sellers are helping them by putting so many of their homes on the market at the same time. Ever hear of the law of supply and demand, Sherry?

I answered you
0 votes Thank Flag Link Sun Sep 7, 2008
If you can get out from under your house without a loss, you're probably doing better than most. Good Luck
0 votes Thank Flag Link Fri Sep 5, 2008
Hi Sherry. First, only GOD knows the perfect answer to your question. It DEPENDS. In other ways, it is common sense. We all know we are in a terrible market (if you are the seller). Or, to say it another way, we are in a "buyer's market" in the US today. But, you noted that.

So, a key would be how good the CMA you were provided was (agents assessment of the SOLD property prices in your neighborhood) . Or, if you dictated the listing price for your home based on what you thought your home was worth. If the listing price was really placed at market, then how long has the house been on the market? How many offers have you had? Does the market think your home is worth as much as you and your agent think it is worth? What is realistic (absent of all emotion).

Now, given the above, the LOW BALL answer may be a realistic offer – or crazy. But, it takes a lot of energy to get a buyer in this market to make a written offer. It is fair to say they must like the home. What do you think? So, playing verbal games on an offer is BAD BUSINESS. The SKILL of Negotiation is a matter of knowing how to keep a buyer engaged (easier said than done). How do you keep them at the table. So, this is NOT about insulting someone. Right? So I NEVER state that a buyer’s offer is a LOW BALL offer. I don’t have to nor do you. There is a more subtle way to do this if you are justified in your thinking. Respond with a counter offer that is (for lack of better English) a HIGH BALL offer. Example: Current price = $300,000 after $25,000 price drop. LOW BALL Offer = $250,000. Counter “nicely with class” at $ 295,000. Thank them repeatedly for their offer. The message is clear.

Now the above conversation is academic if the home is only worth $250,000. It may be YOU that needs to get REAL. Never know.

What about sticking with your price? Well, we are back to square one. Is the price justified by the numbers. How long can you wait? Do you have to move? Can your home stand becoming shop worn (too long on the market making people wonder what is wrong with it)? What is the sales picture TODAY for homes selling in your market? Are homes selling – moving? Are sales rates greater than, the same as, or below what they were last year at this time. What are sales volumes like in your area (up, down, stagnant)? How many homes are for sale within the price range of your home in your neighborhood? What is your competition? Lots of questions.

So to answer your question, all of these variables have to be weighed (to the degree possible) without emotion. Lean toward common sense to the degree that is possible.
0 votes Thank Flag Link Fri Sep 5, 2008
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