These days, buyers often want to “test the waters” by making their initial offer on a property quite low. After all, nobody wants to pay more than is absolutely necessary.
In many cases, a seller will simply counter an offer with terms acceptable to them. It’s also an excellent strategy for them to determine if a potential buyer is serious.
But some sellers are impatient and simply reject offers, which is their right. However, this doesn’t mean that all is lost.
Both buyers AND sellers are always free to reignite the process with a fresh offer at any time. This is a very common practice with institutional sellers and private sellers are also beginning to catch on too!
So step back, take a deep breath, and start anew! Very often the second time’s a charm!
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Richard, you are so right. It really isn't over until a house closes, is it.
Listing agents need to avoid "siding" with a sellers anger and just let the seller vent, but find reason to counter, offering the buyer something besides the price they want. Buyers often come up a lot. On the other hand, the buyer's agent should warn the buyer to expect the worse.
Last year my seller decided it was a waste of time to counter a low offer.......and after a couple of weeks the buyer came back with a new offer. They were concerned the seller might be so offended that they wouldn't talk with them, but that was not the case at all.
Yes...love the deep breath part. In our market traditional sellers are very hurt by low offers. But a new offer will always be looked at.
Thanks!
Here in many areas, if a home is priced right, it will have multiple offers and the potential buyers will be asked for a highest and final offer. For a buyer deciding if they want to increase their offer can be difficult because they can't know if they are the highest bidder or will contiue to be after all the final bids are in.
You are so right sir however most buyers are willing to throw in the towel and simply move on to the next home.
Richard
Your insight is right target, many time after the lost of a sale the people be serious.
Good luck and success.
Lou Ludwig
I alway suggest counter, even if it is full asking. It is usually price or terms. I still think that comps are the best amunition when buying or selling.
I have seen it lately Richard that BUYERS are the impatient ones. One counter by the seller and they run off. I think it happens more in very strong buyer market situations. Negotiation is supposed to be about "negotiation" and the biggest wimps in this are the agents not the principals. Maybe we need more negotiation training.
Richard,
I am also seeing some of what Gary Woital sees, when buyers waffle at seller hesitation.
Gary (#9) makes a good point. Have seen this single pass straategy or "wimp-out" tactic now that there are more first time buyers in the market. This also speaks to generational differences in buyers AND their REALTOR(R)S.
BUT, was this post written for someone in particular Richard?
Yes so very true...and if the buyer doesn't like the counter...they can counter back!! Great post!
Richard - I deal primarily with new construction listings and like everyone else we receive alot of 'low ball' offers. A few years ago, I started using a practice other than countering with all 'low ball' offers. Of course, the decision is the Seller's, but I advise them to not counter an extremely low offer. I suggest that we use a form titled 'Response To Buyer's Offer', therefore we are not locked into negotiations if we receive another reasonable offer in the interim from another agent. This form states that 'we cannot accept the offer as written and hereby reject....we would favorably consider the following changes: __________________.....if the changes are acceptable to you, please submit another offer.....'
Do you have this form in GA?
I just used this tactic on a new construction listing a few days ago and we are now 'Under Contract'!
You're right - a rejected offer means you now have information about what is NOT acceptable and you can continue to find that common ground acceptable to both sides.
It's really important to keep the door open after the sellers just say no to an offer. If you treat the listing agent with respect (like the price probably wasn't the agent's idea), they are more likely to try to talk sense to their buyers.
I always say that when you have seller who wants to sell and a buyer who wants to buy - surely we can get a deal together.
Denise...
That's an interesting response. Sort of like a reverse "letter of intent." I have never seen a pre-printed form like that here, but I'll check.
We just might have something like it. Thanks.
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So true. I had it happen before. Buyer low balled, seller rejected. Months later, home still not sold, buyer still interested, and we came to terms. Not all properties will last that long on the open market. The buyer, IMHO, was fortunate.
Hi Richard - Sometimes an offer is accepted and all races smoothly to close, but more often than not there is a period of negotiation, and it can take all forms. If a buyer really wants the house, I agree - why not try again?