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I see this on a personal level everyday - I do believe that much of the slower sales these days are a direct result of the 'standoff' they describe below.
"In general, sellers have gotten more realistic in pricing their homes than they were right after the housing bubble burst, but agents say that many still don't grasp how much they must concede to close a deal. And buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.
Take such unreasonable expectations, multiply by two, and what do you get? "A standoff," says Glenn Kelman, CEO of real estate brokerage Redfin."
I read the "article" twice and still confused on the "helping" message here.... This just seems like good ole NAR propaganda.
My favorite line:
Quote:
With the busy summer home-sale season drawing to a close, there's little time to waste. Whether you're trying to unload your place or land a new one, follow these dos and don'ts to negotiate the best deal -- fast.
FAST! lol
Forget about how much you can afford - that's not important for a "good advice" article.
I think it really depends on your situation. If you have to move (job relocation, etc) then throwing huge lowball offers around probably isn't in your best interest. Or at least not for very long. If you don't have to move, but are looking for a good deal then it doesn't seem like a problem. Maybe you get lucky, maybe you don't. Just move on to the next one.
I don't think sellers have quite the same flexibility because buyers will see how long the house has been on the market and that may have a direct impact on how much they offer.
I think the best advice that someone could give is to NOT listen to "national" news as real estate is local, and it's local per community within a market.
There are some good tips for both buyers and sellers here. I do have a couple of different approaches.
For buyers, make your offer close to what the market value is. If it is 5% below list, bid 5% below list. If its 25% below list, make that offer. Your agent can show you the comparable sales and should be aware of any concessions made which would not be reflected in tax records or Zestimates.
For sellers, make it a dialogue. If you get a lowball offer don't just say "Get real! Try again". Make a counter offer. Yes, your bueyr might get upset because you didn't come way down, but you have more likelihood of a series of counters, especially if the buyer is working with a good agent.
I read the "article" twice and still confused on the "helping" message here.... This just seems like good ole NAR propaganda.
My favorite line:
FAST! lol
Forget about how much you can afford - that's not important for a "good advice" article.
I think you missed the point of the article - which by the way is a Money Magazine article in which the NAR was not referenced or quoted even once. It was not meant to be a complete primer on home buying and selling, it just captured what I believe to be the most common problem when it comes to negotiating on home purchases these days – at least in my neck of the woods. I shared the fact that I run into this everyday in my area. All real estate is local, but I would surmise that there are many others areas in the nation with the same issue – not all but many.
I have already posted similar concepts several times based on my own experiences and it boils down to a certain lack of realism of many buyers and sellers these days. Until that realism enters back in, I think we are going to continue to see this during negotiations for the foreseeable future. To me, this article just made clear that my area is not the only one in the nation experiencing this.
For sellers, make it a dialogue. If you get a lowball offer don't just say "Get real! Try again". Make a counter offer. Yes, your bueyr might get upset because you didn't come way down, but you have more likelihood of a series of counters, especially if the buyer is working with a good agent.
I totally agree with this. I always tell my sellers to expect low ball offers and to not take them personally. A lot of them are just fishing, but you never know - that's why I tell them to think of it as the beginning of a conversation. The conversation may or may not go very far but you can't find out how far it will go if you don't engage in it. I have had some initial low ball offers that turned out good for both parties in the end after some non-emotional discussions. It also usually don't take that long to figure out when some buyers are just fishing.
We would be happy if we could get a showing! I don't think we have had one showing in a month or so...it's brutal out there. We are even listed 3% lower then what we bought for already. It doesn't even seem like we are on the market
I think you missed the point of the article - which by the way is a Money Magazine article in which the NAR was not referenced or quoted even once. It was not meant to be a complete primer on home buying and selling, it just captured what I believe to be the most common problem when it comes to negotiating on home purchases these days – at least in my neck of the woods. I shared the fact that I run into this everyday in my area. All real estate is local, but I would surmise that there are many others areas in the nation with the same issue – not all but many.
I have already posted similar concepts several times based on my own experiences and it boils down to a certain lack of realism of many buyers and sellers these days. Until that realism enters back in, I think we are going to continue to see this during negotiations for the foreseeable future. To me, this article just made clear that my area is not the only one in the nation experiencing this.
I took the point of the article to be... "How to get a house closed". I admit to my cynical ways, though.
The issues between sellers and buyers is a product of the economy more then anything else - you can call it "negotiations" if you prefer, but others may call it pricing a depreciating asset in a recession.
We would be happy if we could get a showing! I don't think we have had one showing in a month or so...it's brutal out there. We are even listed 3% lower then what we bought for already. It doesn't even seem like we are on the market
Saying it is listed at 3% lower than what you bought it for is a pretty meaningless statment to probably everyone but you. I don't say that to sound harsh, but the reality is houses are worth less then they have been. In some places a lot less. In other places a boatload less.
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