Buyers know that its a buyers market and they know that there are good deals out there. However, even when properties are good deals, buyers want an even better deal on the already good deal. They want to offer far less than list price, even when list price is far less than market value. That’s the attitude when buyers know its a buyers market but don’t fully understand what that means.
Many buyers want to offer $50,000 less than the list price, on $150,000 Logan homes, because they just want to see what the sellers will do. Is this a good idea?
It depends on who the seller is. If the property is a short sale or bank owned home, then this may be okay. Banks are realistic and aren’t going to accept an incredibly low ball offer, but doing so probably isn’t going to hurt a buyers chance of actually getting the property later if they do decide that they really are willing to pay more for the property.
If the property is owned by a regular seller, someone who has lived in the house and made it a home, then this is a bad idea. For a seller the home has value. It has memories, it has emotional value, it has monetary value of improvements the seller has made in the property.
When sellers get a low ball offer they get offended. They develop emotional animosity towards the potential buyer and often will refuse to even counter the offer, because they don’t want to sell their home to someone who doesn’t see the value in it.
A good real estate agent will advise their clients on a real value for the property, and help them make a realistic offer based on that. Many of these sellers absolutely can’t go any lower than their list price. They are already paying to get out, and are doing all they can just to avoid a short sale.
One strategy for this market is to try and get buyers to make an offer that will be accepted immediately. An offer that is low enough that it is still a good deal, but high enough that the sellers will take it instead of risk losing the buyer.
When a home buyer has a good buyers agent, the agent is going to sell it to the listing agent that the offer is good, and that the buyers are expecting it to be accepted.
When the seller receives the offer, they will understand that even though the offer is probably slightly lower than what they would have accepted, they may take it, just to have it done with. By accepting the initial offer, they don’t have to go through any more pain that comes from uncertainty and waiting.
If a home is a good deal, offer more than the list price. When properties are good deals they are going to get multiple offers, but only one buyer is actually going to be able to purchase the property.
It’s a new age of real estate. Whether you’re looking for Mesa Arizona Real Estate or Real Estate in Wisconsin, buyers attitudes and behaviors are different than they have been in the past. It’s important that real estate agents educate their buyers accordingly so that they really can offer the best service and expertise.
