As a listing agent, when I have a listing priced at $182,000, why do I care that the buyer only wants to pay $165,000 for a house? I had a listing that closed a couple of weeks ago, but negotiations were a little difficult. We were listed at a very competitive $182k for a 2700 sqft home built in 2002. I know buyers in many parts of the country are drooling over that price!
I get a call from a buyers' agent asking if my seller would take $165k. I tell her she can write up an offer and I'll present it, but that it seems pretty low for this house and not sure how the seller would react to it. Of course I knew how the seller would react because I prepare my sellers at our initial listing appointment. I run through several scenarios with my sellers so they know what to expect, the good and the bad.
She continues to tell me that her buyers are already approved to $169k, but only feel comfortable staying around $165k, oh, and they'll need closing costs. It's like she's trying really hard for me to discuss confidential information about my seller to see if he'll take less, but I never fall for it. I again tell her to send me an offer. So, I let my seller know about the conversation. By the way, the house was only on the market about 6 weeks.
I end up getting an offer the next day for $169k with no closing costs. Great, it's better than she said it would be. We countered it back since it was still fairly low. The buyers' agent is very upset that we countered and reiterated that her buyers' comfort level was only $165k and by submitting the offer at $169k with no closing costs, that they were serious about the house.
"I'm sorry, but what part of your buyers wanting to pay $165k has to do with my seller listed at $182k? Why are you showing your buyers houses that they can't afford?"
"Well, it's a buyers' market and my buyers thought your seller would be excited to receive an offer."
It's been 6 weeks, not 6 months... "Umm, what market do you typically work in that it's a "Buyers'" market?"
For people across the country who are in buyers' markets, we're not in Dallas. Yes, we have a lot of inventory, but in most areas, houses are selling about 97-98% of asking price, and some individual communities are selling at a full 100%.
I looked up the agent in the MLS. She has sold only a handful of houses in the past couple of years. Great, another agent who "dabbles" in real estate as a hobby. Just so you know, my seller sold for a very nice price at 98.11% of asking price, and the buyers' comfort level increased when another offer was on its way.
Remember, I work all of North Dallas County and Collin County including Richardson, Plano, Allen, Frisco, Carrollton, Garland, Rowlett, McKinney, etc... my car will take us anywhere you need to go!!
ARE YOU PACKED YET?!
Donna:
I love how you handled yourself in this situation. You never forgot who was in control and best of all you represented your clients just the way you should have. Its funny how the comfort level can suddenly change....:-)
I think you did the right thing. You represent the seller, which means any information you get from the buyer or buyers agent is not necessarily accurate. The buyers agent probably knew that the buyer could do 182K, but wanted to make you think that it was 165K so they could get a better deal.
Good job.
Hi Donna,
We feel your pain out here in Phoenix, only in a different sense. Buyers who are lowballing already low ball listed prices (ie. REO's) and then getting perturbed that the bank did not accept 60% of their asking price, on a price that was already about 60% of the market value. Oh how I long for this market to return to normal. Best of luck.
I represent a lot of sellers and I hear that from other buyer's agents stating the buyer only feels comfortable for their budget of paying $x.xx. What should what the buyer feels comfortable budgeting for matter to my seller? It should not and it does not. The buyer is responsible for their budget not the seller. Its a silly negotiating statement.
I have said the same thing to Realtors, why are you showing this house when it is already 115K below what they paid, we are at rock bottom and you bring me an offer at 320 with 3% in closing costs. It made me sick to have to call my seller in NY. But, I did and we countered back very well. Now she says they don't want to pay that much. THEN STOP SHOWING HOUSES FOR THIS MUCH !!
Sorry I'm just ticked at Realtors right now !
Donna,
She sounded wet behind the ears from the beginning. The verbal offers really get under my skin. If you want to be taken seriously - PUT IT IN WRITING! A buyers mkt doesn't increase equity! I had a seller priced at 279k who received an offer for 250k. He was so annoyed he directed me to counter to 278,000. I think the buyer's agent got the point. I always look up the other agent before negotiations. I find it critical to better understand who I'm working with. Babysit or worry less transaction?
Donna, I feel like I am spending more money than I make at this point. Why? Because I seem to get the people that think they are going to a flea market when purchasing real estate.
They think sellers are desperate. So they think sellers will haggle with them like its a lamp they are buying. Listed at $200,000, we will offer $150,000 and see if they meet us somwhere in the middle. lol.Who cares if it is priced right.
You can show them comps, you can show them appraisals and they still don't get it.
I don't know if your agent was the problem or the buyer was the problem. Maybe both. Sounds like both.
I have no patience for some buyers these days. I have even less for the agents I am meeting.
Don't you hate it when you have to S.P.E.L.L I.T O.U.T ?
It looks like I haven't been responding to people, but at one point, this blog reproduced itself and I had been putting all the responses there. Now, this version has popped up again, so I'll start responding on this one instead of the other one.
Joddie, Exactly! And I ask that question all the time.
Tom, I missed it. Can you R E P E A T that please?!
Frank, I believe FSBOs are always on the market longer because the consumer has started to realize that going directly to a seller without representation is going to be a headache and they are probably watching a lot of Judge Judy and wanting to stay out of court!
Cheri, I get those buyers too. It gets easier when they lose a couple of houses, and then they get really serious when they really don't want to lose the house.
Greg, I don't like verbal offers either, but she was only doing what the "National" news tells a buyer to have their agent do which is try to gather as much of the confidential information as possible. I can't fault her for trying, but my lips are tight when it comes to sellers' motivations for selling.