thanx to all that posted responses!
Sorry for a bit of a reality check... but who says you're below market value? If the home has been on the market for a reasonable amount of time, properly marketed and shown, and you have multiple offers around the same price, it is you that are off on the market value, not the hundreds or hopefully thousands of buyers that have been exposed to your home for sale. Very common issue for sellers.
Market value is determined by the price a buyer is willing to pay and the price a seller is willing to accept. Your real estate agent is not a factor in that equation. If the price that buyers are willing to pay IN TODAY'S MARKET is too low to accomplish your goals, then it is probably best that you take the house off the market and wait for more buyers to come into the market and push prices back up. How long will that be? Nobody knows.
In today's market, 14-20% below list offers are not low ball. Buyers are frugal. Continue to negotiate with them without getting frustrated. Something good will come of it. Mind you, they should be presenting you with a prequalification or preapproval that meets your list price; otherwise you may be negotiating with someone who can't afford where the price is headed. In that case, I stop negotiating until I get an increased loan approval.
Can't sqeeze any more juice out of some turnips.
Then - once it is resurrected - others jump in and don't bother to look at the date it was first posted -
voila - you have an active forum again!
Glad you sold your home........all the best!
If the market is soft, the offers don't just flow in.
There are buyers that simply don't rush - ever.
Glad you were successful.
Florida Future Realty, Inc.
â€œThe opinions expressed herein are those of the author and/or commenters and may or may not represent the views of Florida Future Realty, Inc."
take the money and run.
The fact that you have 2 offers on the table is an excellent situation in this market. I don't want you to feel "frustrated" but to take this as a business advantage. If you look you situation the right way you have 2 potential interested buyers to work with. Both wrote reasonable offers and this will give you the opportunity to negotiate different aspects of the offers. The price is just one that can be adjusted because you can counter offer both. Within this counter, you can address other issues, such as home inspection repairs, good faith deposit, escalation clauses, right of first refusal or even the ability to keep marketing the property. Please feel free to email me to discuss further at firstname.lastname@example.org
Just a couple of quick observations: Apparently (based on the number of people viewing the property and on the good offer you finally got) your home was competitively priced. What some of the comments may have been suggesting (not putting words in their mouths) is that lots of sellers are not realistic about their home values. I saw in your comments that you had done research supporting your price. Honestly, lots of sellers don't. They remember what a house down the block sold for a year, or two years, or three years ago. Or they think that the poorly-done basement rec room (that smells like mold, the peel-and-stick tiles aren't sticking, etc.) has added $30,000 to their homes, etc. Congratulations to you for having done the appropriate research.
As for lowballers: Yes, they exist. But at least they're offers. I do agree with the others that you should have countered--and probably more than a token $1,000 under your initial list price. Some lowballers don't really expect to get such a deep discount, but they want to see if there's any flexibility there. Kind of testing the waters. Do they realize that they'll "insult" some sellers? Yes, but they don't know which ones. So they're willing to make lots of offers. I'll acknowledge: In your case, it doesn't appear that you were harmed at all by your token counters. But others in situations similar to yours might be quite happy with a final offer--after a couple rounds of negotiating--maybe 7%-8% below the listing price.
I agree with you 100% about the entitlement mentality of some of the buyers in the market today. On top of that, you say that most of the lookers were first-time home buyers. That just adds to the difficulty. While Realtors do try to educate buyers, some are just convinced about what they want, what they should be able to buy, and what they won't settle for. (The whole issue of stainless steel/graine countertops comes to mind. Imagine basing your entire purchasing decision on whether a property has those, or perfectly acceptable white appliances and laminate countertops.)
Anyhow: Congratulations. And thanks for posting the follow-ups.
but if they are chronic low ballers (as one of ours was) u are doing ur reputation no favors, with ur fellow realtors and not with sellers. most of the buyers that came to our house were first time buyers and they need to know the market thew wish to buy in. we see this age group (20 somethings) as the "entitlement age group" they want what their parents worked their whole lives to get the granite, the 4 bedrooms, 2.5 baths, etc. it doesnt work that way, not normally! so buy what u can afford.
remember, 20 something buyer, one day u will be on the other side of the house selling/buying transaction, really think about when u make that low ball offer that that could be u 5-10 years from now, how would u like it? i doubt it. again, if the house warrants that offer, go for it, i am all about a deal, but a good house, non desperate sellers deserve some respect, u wont be taken seriously.
anyway, we are in a contract and hope to move on with our lives in october. we also hope that our buyers will enjoy this home as much as we did.
like everything we buy, houses, cars, retail, entertainment, all of these things are commodities. i dont think there are too many places that u can walk into and say, i want to pay 20% less then its marked and not be shown the door.
we will take ur comment about coming down a bit more than $1000 on a low ball offer into consideration anthony, but again, we feel documentation is needed to back up such a low ball offer. without documentation where does any bargaining begin??? if we are suppose to throw documentation out, then i guess buyers should start with $1 and see where that goes?
also, there are plenty of considerate buyers out there who will come in with a reasonable starting bid on a offer for purchasing a home. coming in at 20% below list in any market is not considerate and i would think a realtor would really really try to talk them out of it, again, with documentation.
thank u for ur insight!! good luck to all of us!
And you're missing the point. Like Barb Dearing said below: "Market value is determined by the price a buyer is willing to pay and the price a seller is willing to accept. Your real estate agent is not a factor in that equation."
In other words, forget the documentation. There is no law that says anybody has to base their offer off "documentation". What are buyers willing to pay? And what are you willing to sell the property for? If those numbers meet somewhere, there's your market value. That's it.
Real estate agents do the best they can to represent the client with whom they are working. We don't collude on prices or methods. there are many different ways to do things and different ways to value properties.
No, I'm not saying that you shouldn't counter, but do better than $1000. That's not the counter the buyer is looking for. The advice you received about just countering a little lower than list might be good in certain areas of the country, but in Will County it's bad advice. Counter 5K down, and see where the buyer's next counter ends up.
in your comments you never once addressed my comment about "documentation" from the buyers showing how they got that price?? i think that is one major point that needs to be addressed.. how can we even come to terms without documentation? we are willing to look at how they got to their numbers and go from there, without that knowledge we are left with assumptions and we all know what that means. we have read and listened to the advice and comments given here, but i feel its also time for u as realtors to listen to us or at least give us the information we need to make the decisions we need to make. u dont know what u dont know. thank u.
You're not selling cars. You're trying to sell your home in a market where the values have been going down for the last 5 years. You've received some great insight here, yet you keep rejecting it. Why are you even asking for advice if you're not willing to accept it? If your home was priced below market value, it would have sold already. The fact that it hasn't shows you're above market value. Comps mean nothing without a willing buyer. Every agent here has had properties they thought were priced well based on the comps that hadn't sold in the time they expected.
I'll tell you why the buyers aren't coming back after your counter. They think the same think you're saying about them: You're not serious. Countering with $1000 below list price is pointless; you might as well just counter at list price. The buyers are scoffing at your counters. You should be countering $5000-$10000 below list price to show you're negotiating. Otherwise, you're just wasting your time.
You mentioned there are foreclosures in the neighborhood. Step back and put yourself in the buyer's shoes. If you were a buyer looking in your area, would you buy your house? Or would you choose something much cheaper like a foreclosure? Don't get emotional or insulted. This is a business transaction in a rough market. You're going to get disappointing offers.
And the fact that you're getting offers is a good thing. But you have to work it the offer. Expect to settle at least 5-10% below list price. If you do better, that's great, but don't count on it because you may end up disappointed.
so we will see if this latest offer goes further, or if the buyers are just throwing mud and seeing where it will stick.
In todays market, You should be very happy to be getting showings as well as offers. You should also understand that there are an abundance of properties for sale in this market. EVERYONE is hoping to sell. Buyers are few and any homeowner would embrace the buyer they get. You should be willing to negotiate. As my professional experience with working with buyers in this market, A buyer has a huge amount of invetory to choose from so if you dont negotiate with them , they will move on to the next property.
I would suggest talking with your realtor and make sure your Property is priced right. I would hate to see you turn down offers and 6-12 months later, you reduce your price to the price you could have sold at 6-12 months ago.
MCCOLLY REAL ESTATE
"W did see your offer. We would, however, like to see your best offer before responding."
This response is not a rejection. If they weren't serious, then that might be the end of it. Inviting another offer allows the buyer to reconsider.
Best of luck, Turk.
of Longmont, CO
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMAâ€™s, you will see the trends.
Evidently, the two "low-ballers" have read my info about LISTING PRICE.
Maybe the third buyer will.
Good luck and may God bless