Miami Dade Real Estate Scoop

I always have a counseling session with buyer prior to deciding if I want to work with them.  If they indicate they are going to want to make low ball offers, I simply tell them it would not be a good fit.   If I am working a buyer who slips by this litmus test -- I try ask them a lot of questions about what they hope to accomplish -- what are their goals -- I ask them to put themselves in the seller's place and perhaps even role play with them.  I also will tell them stories about how the low ball offer can have a negative effect on the seller.  Of course if they continue to want to make the low ball offer, then one must submit the offer -- Fortunately, I have only had that happend once or twice.

Joan - you do what a good buyer's agent is supposed to do.  You educate them and look out for their best interest.  Your experience tells me it may not be such a common thing.  I'm wondering if this market we're in has made folks a little more brazen with their offers.

I've heard similar stories from agents in my office as well.  People seem to think that if a home has been on the market a few months, it must mean they are desperate to sell and will consider any offer!

Ravi - your comment makes me think it might be happening more often than I was thinking.  Which is not what I was thinking after Joan's comment.  I think I'll start an informal poll at the office.  They'll run the other way when they see me coming!

Joan - Whenever we take that approach, the client seems to think we are not working for them and instead looking to get a higher price to make a higher commission.  It's a fine line between educating and alienating the buyer - a true tight rope act.  Sherry

Sherry - isn't it a shame that folks would think that?  After all, 3% of no sale is still nothing.  But your point is a very valid one.

Here in Ohio area it seems the tide has turned a bit.  Where just a few months ago, sellers were scared and willing to go to the closing table with a SIZEABLE check in hand to be out from under their property, they are now holding STRONG on their price. 

I think the panic stricken seller syndrome is leveling out.  Sellers are tired of getting the $50K, $100K... under asking price offers.  Over the last several months sellers have become more comfortable with the longer selling period and are coming to realize that it's no longer 2004 where sellers were getting AWESOME TOP DOLLAR prices for their homes and multiple offers. 

You gotta give the Buyers and their agents credit for trying, but it just isn't happening like it was.  Sellers are becoming more realistic, but now it's the buyers and their agents turn to change with the tide.  Eventually we'll all be on the same page again.

Here in Ohio area it seems the tide has turned a bit.  Where just a few months ago, sellers were scared and willing to go to the closing table with a SIZEABLE check in hand to be out from under their property, they are now holding STRONG on their price. 

I think the panic stricken seller syndrome is leveling out.  Sellers are tired of getting the $50K, $100K... under asking price offers.  Over the last several months sellers have become more comfortable with the longer selling period and are coming to realize that it's no longer 2004 where sellers were getting AWESOME TOP DOLLAR prices for their homes and multiple offers. 

You gotta give the Buyers and their agents credit for trying, but it just isn't happening like it was.  Sellers are becoming more realistic, but now it's the buyers and their agents turn to change with the tide.  Eventually we'll all be on the same page again.

Jody - thanks for your input.  I always find it interesting to hear what's happening in other parts of the country.  In my own area I never saw the panic sellers.  They've really been holding firm here, even when the market really demanded that they bring it down just a tad.  Sometimes I saw them use listing prices that were more in line with the appreciation we were having a few years back...double digit and such.  A little balance would be a welcome change.  =)

People are "distressed" for other reasons than just going to foreclosure.  Once in a while they will flat out tell you they are very motivated but usually a good listing agent isn't going to reveal that.  Therefore, in order to identify a motivated seller you need to make a real offer and see how they counter.  When they counter back with a significant reduction, you usually have found someone who is motivated. 

I tend to see the final purchase price ending up half way between the list price and the initial offer price.  So would $325,000 be acceptable to your seller?  With the run up is prices having been so dramatic in some markets in the last few years, it might take a substantial drop in prices to get things back to normal.  It all depends on the job market and interest rates.  If they go the wrong way there just won't be enough people to afford the present level of pricing. 

Even when we get low ball offers i usually have my sellers counter with what they would like.  Typically the buyer moves on to make a low ball offer somewhere else but I have had the situation where they came up, I guess they were just testing the water.

OMG!  What an offer!  I have seen it here and wrote about it too!  

As a Buyers agent I would refuse to write a contract low-balling a listing. That is unless there were some extenuating circumstances in the area or of the home itself that indicate it's value may be dropping.

A few years ago I would get an offer on every one of my listings from the same guy.  Each time it was exactly $100,000 under asking price, in a hot sellers market.  I tried to call him a few times, just for a chuckle, he never even called me back, lol. 

Tim - I agree that there can be times when the low offer is precisely what's needed to bring some sellers to attention if they're priced too high.  Not in this case.  This home is priced right there with the last sales and he is not distressed, foreclosure or otherwise.  I'm still thinking about the audacity of the $120K offer on the $320K listing.  $120K would have been right 6 years ago!

Marchel - very good, after all there are only 3 things that can be done with an offer:  accept it; refuse it or counter.  There was no way he was going to accept.  Refusing served no purpose.  He countered and the buyer continued the fishing elsewhere.

Renee - I'll have to check out your post.  You know I love to read your stuff =) 

Danny - yes, there can be exceptions to the rule.  As the professionals we are we should be well informed about what's going on in the areas we cover.  That's really why I was surprised at the offer.  Nothing warranting such a price drop is going on here.

Laurie - you snuck in there while I was replying =)  Your comment makes me think there are those people out there that regularly do this across the board to see if they find any takers.  I wonder if he ever got one?  hmmm...  I wonder why he didn't call you back though?  As far as he knew you could have been calling him to accept one of his offers!  lol

Good Morning, Maggie!  Have you ever seen Terry Watson speak?  You've probably heard me sing his praises before, I can't recommend him enough!  He said when you get a low-ball offer, this is when the fun begins!  Your sellers can counter with ANYTHING.  ANYTHING!!  The house is listed at $347,000?  Why not counter THREE MILLION!!  Throw in all kinds of ridiculous ideas.  If their offer was REALLY insulting, maybe even give them this counter.  Otherwise, just use it as a way to see the humor in the situation with your sellers. 

I haven't used this approach myself, but I can see the fun in it.  Terry can get away with it, not sure it would go over as well with me.

The problem I've been having is people calling wanting to rent houses that have been on the market a while.  Most agencies around here don't handle rentals and good ones are hard to find.  Sellers don't want to hear about it though, they want to sell their house and buy their new one.

Hi Sarah!  No, I'm not familiar with Terry.  I'll have to look into him =)  I have to be honest and say that my seller's counter was higher than his listing price.  Just a little though. He really was insulted.  I didn't realize there was someone out there advocating the same.

I haven't had that rental situation in my market.  Actually, the reverse!  I had a couple of rentals available and kept getting calls for lease to owns.  I don't do rentals.  These were my own properties and I wasn't interested in selling.

We usually don't have it that bad out here in Hawaii....although I did receive an "insulting" to the seller offer.  Basically, 20k below list price (list price of condo is 225k), 8k to buyer for closing costs and of course the seller rejected the offer....and another and another...and now in contract.  And I agree....go search for foreclosures.

Sally - thanks for piping in =)  You're right, that offer doesn't sound too bad ::grin::  I guess it depends where you're viewing it from.  I can see how the seller would find it insulting though.