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Has anyone here had any experience with a reverse offer, as a seller or a buyer? What are the pros and cons? What would make a really good one, and at what point in the process would you consider it?
There is a lot of talk in my market about reverse offers, but I've only heard of one person actually doing it. As in most situations, most people are talk and no action.
In the case where the seller did present a reverse offer, the buyers actually accepted it.
Personally, I don't really like them because as the seller, you're saying, right off the bat, "I know I'm listed at such and such price, but I'll go ahead and accept this price." And then the buyer goes, "Well, you're showing your cards, so I'll come in even lower than that..." How bad does the seller need to sell? And if they're willing to accept a lower price right now, why not reduce the price for all buyers to see??
Last edited by FalconheadWest; 04-11-2009 at 06:32 PM..
Reason: typo
I've used them before. Mainly if a buyer is on the fence between my listing and another. Works sometimes. Sometimes it doesn't. If it works, it's most likely because you came in lower than the buyer was even thinking, so you might feel like you left money on the table, but you'll still have a deal.
There is a lot of talk in my market about reverse mortgages, but I've only heard of one person actually doing it. As in most situations, most people are talk and no action.
In the case where the seller did present a reverse offer, the buyers actually accepted it.
Personally, I don't really like them because as the seller, you're saying, right off the bat, "I know I'm listed at such and such price, but I'll go ahead and accept this price." And then the buyer goes, "Well, you're showing your cards, so I'll come in even lower than that..." How bad does the seller need to sell? And if they're willing to accept a lower price right now, why not reduce the price for all buyers to see??
Reverse mortgages and reverse offers are two different things.
A reverse offer could be for asking price, or less, but it also could have other conditions. Say the seller is flexible on a leaseback, say, or other conditions of the contract.
They can be used if someone has come back to see the house two or more times or has had their agent ask several questions, but hasn't come forth with an offer, as an example of someone who is clearly interested but hasn't jumped yet.
Thanks for all the info; I asked because I came across an article on ABCnews.com about how it was a strategy that becomes more popular in buyer's markets... seems pretty much like a crapshoot, though, and I agree if you are going to offer a lower price or concessions you may as well put them out there for anyone to see. Plus, seems like you would have to know an awful lot about the particular buyer to know what kind of offer would be attractive to them, and what about your property was keeping them from making a move (maybe not price, but something else about it, like road noise or something that isn't easily changed).
We haven't had any second showings, so not an issue for us anyway! :-)
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