In our local 
real estate market in Newnan Georgia, most homes are listed at fair market price based on condition and the market. Sellers have become savvier, and they understand that it takes a low list price to attract buyers.
But many purchasers lose buying opportunities because they believe that every house offered for sale is supposed to be delivered in perfect condition. So even though a property is deeply discounted, they expect to deduct thousands from their offers to replace old appliances or re-sod the yard,
But you can't ask the seller to take the hit TWICE for the same defects. If the property was originally price based on needed repairs or updating, then you cannot expect to succeed with an offer that is significantly lower than the asking price.
The key to artful negotiation is knowledge. You have to know how appropriately the property was priced at the time of listing in order to effectively bargain. You can examine comparable sales yourself of enlist the help of a skilled buyer's agent.
It's a great time to take advantage of lower home prices combined with incredible mortgage interest rates.
So don't let the good deals slip away with unrealistic offers based on passion and not information.
This buyer's market won't last forever.
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All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
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Richard, you have said a mouthful there. It is so true, I see this here too. Very important to understand that many homes are priced according to the market and their condition. Asking your realtor for a buyers market analysis, then trusting that your realtor does indeed know the market, will help to ensure that the house someone wants doesn't go to the next guy because the next guy is being realistic.
Richard, this is a very important and timely post. Buyers often lose sight of the fact that unless they buy the house new, it is a used house and will not be perfect. In So. Cal, with properties getting snatched up the minute they hit the market, the buyers are finally starting to realize it!
Hi Richard, Good point. I could not agree more. Closely examining the comparables provides the information necessary to be a realistic buyer. Thank you for the post.
Andrea...
That's exactly what I am saying! If a house is priced at $180,000 in an area of $230,000 homes, it's already deeply discounted, so please don't ask me to write an offer for $150,000 (I will if you insist, but I won't like your chances!) Thanks, as always!
...and Richard, you must have an experienced and artful buyers agent to represent you. When you don't know, then you have to rely on the professionals that are representing you.
IMHO
Bo
Richard, true, true, true! As a listing agent, I often wonder if the buyer's agents ever pull the comps before their clients write an offer. While there is usually room to negotiate, a home that is priced right doesn't deserve to be raked over the coals for conditions that are already accounted for.
It truly is a buyer's market. They buy low and expect the preowned home to be delivered in brand new condition. When I list a home I have an upfront discussion about the realistic market we are in and the "spoiled buyers" that are in control of our market. They have an expectation of gorgeous interior presentations with updates to impress at a redo bargain price. That takes education on both parts ... the listing agent to prepare the seller for price, condition and an expectation of possible repairs ... the buyer's agent needs to have a conversation about price, and what is a repair versus a honeydo. We all have to mutually work together to make it a reasonable process. Nice post!
So true in todays market if your working with a FSBO it may be wise to view the property to see if the price the home owner is asking fits with current sales and listing. Many FSBO exspecially the ones who do not want to work with a Realtor may be completely off base considering how hard it is to get a mortgage and being concerned with the apprasial coming in short.
Richard...we are getting the Seller's educated on what makes a home sell! It's the Buyer's that seem to be missing the boat!
You tell them (and back it up with proof) that a home is priced right at the market price, and they still want to lowball the offer. And then wonder why they don't get a counter offer....and in some cases, a few days later, the home is Under Contract....just not THEIR contract!!!
Ahhhhh.....what's we to do!!!
Hi Richard!
You are so right! I have an offer in on a house right now that was listed at least $100,000 below market. On top of that, it needs a lot of work. The good news is that my buyer understood all of that and offered more than $100,000 over asking and took it in its present condition. I love a buyer who gets it!
Cristal...
I think that they are ...especially after they lose a few to a more reasonable buyer!
Mary...
It just makes the negotiations easier! THX
Bo...
You are right ...glad to hear from you again my friend!
Richard, exactly. We have a listing that was just reduced $100,000 close to where it will sell and a buyer came and made an offer of $450,000 - basically the price of the lot. What were they thinking?
Richard,
You hit the nail on the head!It is up to the buyer's agent to educate the buyer in making their offer! It can be a win/wind!
Hi, Richard: Buyers have to be shown comparable properties that have sold and also what is currently on the market. They can and should expect to get a good deal but need to understand that unless it is new construction, it is not a perfect house and that comes along with getting a good price.
Hi Richard;
Great advice, as a buyer agent I always try to educate my clients of the buying process. Thank you for sharing. Good Luck!
Great points and great advice. Homes priced right are selling.
It's a wonderful time to buy.
We call that "double dipping" here, when buyers asks the seller to take the hit TWICE for the same defects...
Great advice - I had an unrepresented buyer lose his preferred unit because he made an unreasonable offer on an already deeply discounted unit and then refused to negotiate. A second offer came in at list less a closing cost allowance. Unrepresented buyer then upped his offer after the second offer was accepted. Poorly researched offers can and do result in overpaying or in a rejection on a fairly priced unit. Professional buyer's representation by an experienced agent would address both sides of the coin for this issue.
Richard,
This is some really good advice. Buyers cannot get a double discount on a home, Sellers are not offering the double coupon special, at least not in our area.
Richard, as a buyers' agent I believe that you absolutely owe it to your client to do a thorough CMA on the property before making an offer.
Richard - You are so right about educating buyers on how to recognize a home that is ready to sell and a good investment for the future!
Mary
Richard, This really needed to be said as, of course, we are facing the same thing here. Just a few days ago I heard from one of my sellers that his relatives are under the impression that they should start their offers 35% under list! I said to tell them they will never buy a house with that perception.
I sometimes think that buyers really have no idea what we are for other than opening a door and writing on paper.
One other point... Working with buyers means checking the most recent comparable sales from the REAL Multiiple Listing System! Unfortunately, many buyers don't realize that the web sites they see all over the internet are NOT the actual MLS. Several sites are creating much confusion, and leading buyers to believe there's truth in what is actually false information.