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Real estate buying and selling advice, potential buyers making verbal agreements, home buying etiquette, buyer and seller relations, price negotiation tactics
"Why is it so difficult to look at a house and then make an offer if you don't like the asking price?"
Why is it so difficult to take a price and say to the agent "Yes, I'll accept that." or "No, I won't take that amount."
"If I was selling, I wouldn't even begin to consider an offer unless it was accompanied by a deposit and written contract."
What does that accomplish? If a buyer "knows" what they are willing to pay, why do you want to create problems by wasting time if their price is too low?
"If someone isn't serious, I wouldn't waste my time."
Do you really believe that forcing buyers to waste their is gonna' save any of your time?
He's right. In Florida, once a bill of sale is signed between private parties, there is no 'waiting period' where a buyer can change their mind and back out without the seller agreeing to let them go. The title doesn't even have to be handed over yet for this to be a binding contract - just a bill of sale, as in the case of the seller's bank holding the title and awaiting payment of funds to release it to the new buyer. (And I'd bet there are very few people trying to sell a car who will suddenly decide they'll let a buyer go once an agreement is signed.)
There is some truth to your comments about buying homes though. No offense to those who are, but real estate agents are not much more than a step on the rung above a used car salesman. Some are honest and some are not, but they're all in it to negotiate a profit. Keep waiting this market out though - as the coming months in 2008 pass, there will be more desperate sellers willing to let go of what they cannot afford. You'll see asking prices closer to what you're willing to "first offer - take it or leave it," and they'll be more likely to agree to shed that financial burden. At least stopping by for 5 minutes to see the house will go a LONG way to making a purchase at a discount though - sellers like to see someone in person. It has nothing to do with taking offers seriously - there are too many "sell your house now for $" offers available from people only willing to show up once a price has been set.
"Why is it so difficult to look at a house and then make an offer if you don't like the asking price?"
Why is it so difficult to take a price and say to the agent "Yes, I'll accept that." or "No, I won't take that amount."
"If I was selling, I wouldn't even begin to consider an offer unless it was accompanied by a deposit and written contract."
What does that accomplish? If a buyer "knows" what they are willing to pay, why do you want to create problems by wasting time if their price is too low?
"If someone isn't serious, I wouldn't waste my time."
Do you really believe that forcing buyers to waste their is gonna' save any of your time?
If a buyer want s my house he will make an offer in writing with a deposit. If I then accept it, it is binding. If he changes his mind, he loses the deposit. If he is not serious about an offer, then I won't bother with him. He already knows my price.
Effective marketing is the real key to selling your homes quickly and getting the highest price. Aggressive, effective marketing of Client's homes by every available medium is how to get that sale.If a broker represents a buyer they have many things to consider during the process but the end result is to obtain a Deposit and a signed and fully executed contract
One of the most important elements of marketing your home effectively is setting the price right which so many people fail to do. Set the price too high, and you won't get any offers and your home will take too long to sell. Set it too low and you cheat yourself by not getting your home's full, fair value. As an expert in Orlando area real estate, I analyze the market and set area home prices every single day in the course of my business. The For sale by owner market is now a classic example of the need to engage Realtors / Brokers . This time last year I could not drive more than a few yards without tripping over a FSBO sign now they almost have antique status .....why ? Because they cannot effectively determine value nor negotiate contracts themselves
I"m getting really tired of people on this board automatically assuming the big bad realtor is wrong and only working against everyone. Especially those people that mis-read, or don't read all of the post.......
From Rich_CD
"So, you're saying if I'm not willing to pay the full asking price don't bother them? You are aware that the asking price is an inflated price in the hopes of getting the values driven up? That's one of the reasons people are now going into foreclosure because they can't sell the home because it's actual value is not what they paid." Where did I say that? I said make your offer after seeing the property. Are you aware that an asking price is what an seller begins their negotiations with? It's the equivalent of telling all those people that would call them up without even seeing the home, "this is what we'll sell for". While an asking price may be more than what a home is worth it is USUALLY NOT an attempt to inflate values, it is a starting point.
What does people going into foreclosure now have anything to do with you putting in offers on homes you don't have the courtesy to even see?
"I had to perform quite a bit of work to get the number I'm stating! Who calls people at random asking if they will take money for their home? What would writing the price down on paper instead of email do to make things different?"
That's great you spent some time driving around or surfing the internet looking for homes for sale and phone #'s to call, still doesn't show you are remotely serious about purchasing a sellers home for market value. Writting an OFFER down on paper makes a big difference. It discusses the many different terms involved with closing a home, and it IS binding should the seller accept the offer before you withdraw it. An emailed or phoned in offer of "Will you take $XXX" is nothing but a fishing expedition.
"So, I'm the customer and "I" should do a bunch of stuff to waste "my" time. What conditions? If they will accept the price, I look at the home and if it is acceptable I buy. PERIOD."
No you are the potential buyer (if I am representing the seller...not you) and yes you get to waste your time by actually looking at homes before you consider putting in offers on them...if you were a serious buyer. If you were the CLIENT of an agent, the agent gets to waste their time submitting these offers for you.....via written offers.
Just a few of the conditions I refer to that go beyond simple asking prices...
1. Who pays for title work
2. When would closing date be
3. Is offer conditional on mortgage approval, what are the terms of the mortgage approval
4. Is the offer conditional on any inspections
5. Who pays for any current tax obligations and special assesments not yet due.
6. Is buyer asking for Closing cost assitance
7. Is buyer using FHA or VA financing (these add to closing costs of the seller)
8. Is buyer requesting seller financing?
9. Is buyer requesting to move in prior to closing (pre-occupancy agreement)
10. Is buyer asking for the appliances, which ones?
And the list goes on and on and on. Price is only one of the myriad of factors that will make or break a deal
"What are you talking about. My time is important. Do they want someone who "can" buy at the stated price. Or do they want to have to play games to help someone who has more time than money figure out a way to buy the home?"
Remember the sellers have ABSOLUTELY NO IDEA which one of those people you are. They don't know who you are from jack off the street. And if all you are doing is calling them up and telling them a price, there is a very good chance they will beleive you are in the latter category.
"Writing an offer on paper does nothing except tie up the market while people try to play a chess game of "can we get more money". Some prices I was willing to pay a few months back have come and gone and the home went into foreclosure. If the people had been willing to take a look they wouldn't be in foreclosure, how does that do any good?"
Writing an offer on paper goes a LONG way. It does not "tie up" the market in anyway. Your right! It doesn't do any good, however I state again, not many people are going to think your real by going about it the way you are. Even if the people did listen you your offer seriously, in all likelyhood it was lower than they could accept if they were upsidedown in the first place.
Maybe you should go back to those homes now in foreclosure and put in your offer.....but I guarantee you the bank that owns the house now, or has to approve the sale, is going to hang up on you without something in writing.
"You just say it yourself the offer isn't even necessarily binding."
Where did I say it myself that a written offer isn't binding? Read the post, a written offer is binding by the terms of the offer, a verbal offer doesn't carry anything binding whatsoever.
"I really see what you've said as being nothing more than time wasting hogwash that hopes to get someone who is uninformed about the actual value of a home to pay more that it is worth. OK, for some. But, people are losing their ass in this market and it would be good to put aside greed and try to work a bit better on selling their home."
Hate to break it to you, but what you've been doing trying to submit verbal offers is just wasting your time. You have to take into consideration how the seller see's your offer. What it looks like, is that YOU are looking to find the uninformed about the market value of their home, THIS MAY NOT BE THE CASE, I'm just saying this is what it LOOKS LIKE. And the perception you are giving these sellers is that you are not serious.
Most sellers I've talked to completely understand the market is bad for selling, they are not necessarily greedy about their asking prices. I provide the comps, I provide the market outlook, I encourage pricing aggressively in this market.
Greed works both ways my friend, people will perceive the way you are making these offers as you being greedy and trying to "steal" their house, even if it is a bonafide offer that is the best they will be able to get.
"I'm not trying to back talk your response. Help me to understand how in the world the process you described does anything but cause problems and wasted time! I can see how it traps people in negotiations they should not waste time on, but other than that I don't see any good to it.
Is the idea to wear potential buyers down in the hopes they will pay more just to quit playing games? Man-o-man, I just don't get it.
I hope my responses above helped you understand why your getting such bad results. The process I describe is what works for getting offers accepted. It's just not as simple as seeing a house online, calling the owner ans saying will you take $XXX. There is psychology involved, and there are courtesy's involved.
The idea is to show the sellers you are seriously considering buying their property. And that their property is the home for you....provided the price is right. Not the other way around. Do you get to waste time by going to look at homes you would never pay asking price for? Yes, most likely. But does it also save you a ton of time from calling tons of sellers, finally finding one that takes you seriously, one that accepts your price without knowing other terms, then going to see the house in person only to find a waste treatment plant in the back yard, or a home that has a horrific odor, or any of the other hundreds of things that pictures don't show? YUP
Most buyers understand to get the best deal there WILL be a negotiation process. And there will be wasted time, and if you get "worn down" by the process and end up paying more than you wanted, sorry to say it, but that's your problem.
Check out what faithfulFrank said, he's a seller. He's just telling you the truth.
Now on to amax41's comment.......
Last edited by GregTraub; 01-04-2008 at 12:25 PM..
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