How do agents handle buyers with lowball offers? (RE agent, sales, property)
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I originally did specify this was assuming a house was priced appropriately. Ours is actually priced on the very low end for our area. A house not to your personal taste does not justify low balling and wasting everyone's time.
I'm not trying to be snarky, but what other offers have you received? If you are truly on the "very low end for [your] area", I would imagine you'd have sold by now.
I'm not trying to be snarky, but what other offers have you received? If you are truly on the "very low end for [your] area", I would imagine you'd have sold by now.
I've only been on the market 5 weeks. Currently priced at $93/sq ft when others are priced $103-135/sq ft but there's not much available for sale in town. So yes, we are priced low. Are you justifying lowball offers by always assuming it is because the house is overpriced? The price per sq ft they offered is what trailers are going for here.
I don't want this thread to turn into me defending the house's price. It's low end for the area. I know enough about real estate to be 100% positive of this. I went about 30K less than what my agent and other agents I interviewed recommended.
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Quote:
Originally Posted by Hollynla
If you know the seller won't bite, why waste the agents time, the sellers time, and your time? A buyer's agent is representing the buyers in the home buying process and low ball offers show they aren't really serious and are wasting everyone's time (as said above) which is what could cause embarassment over their client's unrealistic offers.
How is the sellers' time wasted?
It takes 5 seconds to say, "We are comfortable with our list price. Thanks, and I hope we can agree at that."
And, that is not "wasted time." That is "negotiation." Why would an agent be embarrassed to negotiate for their client?
Actually, how is anyone's time wasted, except possibly the buyers' agent who exerts the most effort in creating the written offer? Even at that, the buyer may choose to engage at a higher price once a smart seller negotiates from confidence and strength. And, if it IS a game, a smart agent retains the right to terminate the agency agreement at will.
"Lowball" is a wraith of emotion. A legend. A mirage that appears when focus fades. A sellers' attitudinal and subjective diversion from the goal. A pop culture creation without objective substance or definition. You either have an offer, or you don't. You either negotiate or you fail to negotiate.
It is best to keep emotion out of it and stay focused on the goal of getting to an acceptable contract.
Consumers and agents would do well to NEVER refer to an offer as "lowball."
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Quote:
Originally Posted by charlygal
Agents, can you explain something to me. The buyer wants to submit a low ball offer. What's the harm in that? Sure the seller won't bite, but so what? Isn't offers not being accepted a part of being an agent? Writing up an offer takes what? Ten minutes? Why would the agent be embarrassed? It's not a reflection of the agent. Remember, it's about the buyer.
Sellers, perhaps your home isn't as impressive to the buyer as you think. When I bought my old home, I submitted a few low ball offers because I knew I would have to get rid of ugly wallpaper, repaint odd colored rooms, change landscaping, etc. The house, while being somewhat "market ready" still was not to my personal tastes.
What's crazy was that I ended up buying a different house that I paid more for than the original price of some of the "low ball" houses that I saw. It wasn't about the money.
There is no harm in writing any offer. I have never seen a headline, "Lowballed Seller Remains in Critical Condition."
People tend to punish themselves with preconceived notions about how a buyer must conform to their desires.
It does take more than ten minutes to properly prepare and forward an offer, but it doesn't take a lifetime. But, it takes seconds for the seller and the agent to give a counter to that offer, unless you are in an area that only functions with documented counter-negotiations.
As a buyer's agent, how do they usually handle a buyer who wants to submit extremely low, lowball offers on a house that is priced correctly or even on the low end of the comparables? Do the agents try to guide them to be more realistic or is the agent required to send in the offers no matter how low they are? Can the agents refuse to submit the offer?
Only if the seller instructs an agent not to present a low ball offer.
Never be insulted and see if the low ball offer will be increased and otherwise say "any offer is appreciated but this is not going to work"
Usually is a low ball offers follows a denied or countered offer that was higher we will in agreement with the seller tell the potential buyer that it doesn't make sense to present the offer as already higher offers were countered or denied.
Sounds like you are really getting caught up in micro managing this process. Just sit back relax and know that they will come along at some point and when it feels right, you can sell.
Sounds like you are really getting caught up in micro managing this process. Just sit back relax and know that they will come along at some point and when it feels right, you can sell.
I was asking mostly to learn about how agents handle this since I plan on becoming an agent myself as soon as we move, but thanks. I really am relaxed about our low ball, I have no expectations beyond the initial offer. What happens will happen and each day can bring a new buyer.
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"Made the Retirement Run in under 12 parsecs!!!"
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Quote:
Originally Posted by Hollynla
I was asking mostly to learn about how agents handle this since I plan on becoming an agent myself as soon as we move, but thanks. I really am relaxed about our low ball, I have no expectations beyond the initial offer. What happens will happen and each day can bring a new buyer.
Good agents present the offer.
They don't infuse unnecessary emotion, like, "We have a real stupid lowball offer."
Status:
"Made the Retirement Run in under 12 parsecs!!!"
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Location: Cary, NC
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Quote:
Originally Posted by Hollynla
Wouldn't the world be a funny place if we could all say what we're thinking, even in our business.
Well, we CAN.
And some people do. That is where some of the best stories come from...
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