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successfully negotiated one to closing last week that began at $300K apart. This week we got another one to $30K apart and couldn't bring it together. Some you win, some you don't!
Michael Thacker - Re/M...
About 1 in 4. Many times people are looking for a great deal but still want the home.
Michael Thacker - Re/M...
Surprisingly it does come together often.
I have received very low offers that I thought would never work. When it was all said and done the contract worked and the buyers were very pleasant to work with.
Debbie Reynolds Many times negotiations can lead to a successful transaction. When buyers are just looking to steal a property, it never works.
Our market is very strong, and usually we get full price or over full price, with buyers clamoring for each listing.
Depends on the number.
If the offered number is a royal percentage of market value, you are working with a knowledgeable buyer and can negotiate.
If the offered number equals the dark side value or JMV from tax authority, the buyer is not knowledgeable and invested time will be wasted.
If the number is 60% of market value, the buyer just spent $2,500 on a 'get rich in real estate and risk none of your money' seminar and is following the published process. Their agent responded to a "seeking hardworking agent who will submit lots of offers for a multi-property buyer" ad on craigslist.
For the REAL buyer who offers a lowball, negotiation can get the value up 90 percent of the time, but only closes on 40%. As you can see, if you include ALL the offers, the close rate is much lower...but the predators and shills should not be counted.
Makes it tougher but I always recommend a seller respond. No response shuts down the conversation altogether - at least as response keeps it alive - and with that possible. I advise buyers that the way a conversation starts impacts all that follows in an effort to avoid low balling. But in spite of my best efforts, I have presented my share of low ball bids.
more often than not, we can put a deal together....
Many sellers just reject seriously low offers and that ends it. They don't counter, but some sellers will sometimes say if they are serious, they can submit another realistic offer. It can be annoying when the offer is from a local long time agent that knows the current market, yet they still submit a riduculous offer. The price isn't always the killer, it's the fact that they know the offer sucks, so they slap it together and it has missing pages, intitals, and signatures, tbd as settlement company, no EMD, and a lender letter from JJ's Home Loans with no letterhead or date on it.
Sometimes buyers start low to make sure that their fantasy price is unavailable. If they really want the property, they'll come up.
Those who throw down lowball offers to see what sticks are another story.
it all depends on the listing and people involved how much really they want to reach the agreement.
I ask the buyer’s agent why it is so low. If the agent is apologetic we can have a conversation of how to get a more reasonable offer. If they agent is defensive and trying to justify the low offer, my sellers typically just let the offer pass without countering.
Given any day it seems they never close and then some days it seems like they all come together
Not very often. Buyers who come in low are not serious, they are just trying to see what they can get.
I think it really depends on the agent on the other side of the deal. If they work as hard as I do to bring the parties together, it will happen.
If his/her clients are realistic to the "market", and/or educated by their agent, we will be able to put the deal together.
It all depends. If both sides are willing to negotiate, it can work. I had two come in on a listing that were really low, and the buyers were stuck on their prices. It sold to a third set of buyers who came in with a reasonable offer and were acting in good faith.