I was recently working with a buyer in the purchase of an attractive 3 bedroom, 2 bath house. The buyer had an interest in purchasing the property, however before writing an offer, in looking at the recent comparable sales it appeared that the house was overpriced. We had concerns that there could be an appraisal issue.
Before writing the offer, I spoke extensively with the listing agent about my concerns, in an effort to be able to come up with a price that may be acceptable to all parties. The buyer and I wrote an offer. The seller flat out rejected the offer. Apparently he was insulted with the less than desirable offer. He refused to counter the offer we presented. I contacted the listing agent who indicated that he couldn't get the seller to budge, and couldn't get him to make a counter offer.
This house had been on the market for several months. Although it was well maintained, it was priced above many of the other similar properties in the area. The buyer was getting an FHA loan. If the house didn't appraise, then this buyer wouldn't be able to proceed ahead with his purchase, unless the seller agreed to lower his price.
I understand that everyone has a specific price they would like to have for their property. However, that figure has to correspond with what the house will apprasie for in our current market. It makes it a bit difficult when a seller just shuts down and says no. Often that's the end of the road for both parties.
Upon receiving a flat out NO, the buyer and I spoke again. Buyers don't often like to negotiate with themselves, when someone has told them no. They want the seller to come back with a figure, so they have something to work with. However, things don't always go as we would like them to. So, the buyer and I came up with a higher figure. One that we hoped that the seller could live with and one in which we hoped the house would appraise for.
When I contacted the listing agent and told him I had another offer for him, he reminded me that the seller already said no. I explained that we were all hoping to work together on this, to bring the seller a price that would be agreeable to him. I asked him to please present my new offer to his reluctant owner and to please reiterate that the house must appraise to make it a successful sale.
Within several hours, the buyer's offer was accepted. The listing agent did a great job.
The inspections have been completed successfully and the appraisal has been completed, without a glitch.
The buyer is shopping for homeowner's insurance.
The survey will be done tommorrow and we are closing at the end of the month.
In real estate transactions, so often, decisions can be dictated by emotions. And, understandly so. However, when the emotions can be swept aside, often buyers and sellers are able to think more clearly and move forward with a resolution that works for both parties.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
I specialize in Residential, Investment and Relocations.
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Hi Sandy, Sounds like both agents did their job and didn't let emotions get in the way. I typically write a clause that the listing must appraise at or above the contract price or the buyer is released.
WOW wish my last transaction was like this. I had to work with an stubborn listing agent versus a seller. Seller were willing to make the deal win -win but the agent kept shutting them down. We walk out of the contract and they are still on the market.
That is why I like to present the offer in person. You can read a seller better face to face. They also take bad news better from a stranger, not that an offer is bad news, just different.
I hope your week is going well Sandy,
Paul
It is sad how many people will want to sell will shut down and literally buy their house back. This could have been an issue with a stubborn seller or an agent who didn't educate her client from the very beginning. Your persistence paid off, congrats!
Sandy
Great job, no is the stepping stone to yes.
Good luck and success.
Lou Ludwig
Well done, Sandy! Nice job keeping focused with your buyer and the listing agent on getting the house sold!!!
Well done indeed Sandy and you never let the other agent give up on the seller also. Very good job indeed.
Sandy - I once had a home listed where the sellers were an elderly couple. The wife was a quiet sweet thing. But the husband would often seem beligerant, and un-yielding. A buyer and their agent had written a near full price offer, which was cash. I couldn't get Mr. Seller to budge! He went on and on about how the 35 year old buyer, had a great job and could afford the extra money, etc. I couldn't seem to coax a counter offer out of him.
I thought nearly all was going to be lost, when Mrs. Seller accompanied me to my car, and whispered that Mr. Seller was on medication for some medical problem, that made him more difficult to deal with prior to the 1/2 hour before he took his meds. She suggested that I let him sleep on it, and then call at 20 minutes after the hours of 10:00 am - 2:00 pm and 6:00 pm.
I took her advice, and thought from then on I was dealing with a good twin, rather than the evil one of before:-) Sometimes, timing can be everything:-)
Hi Sandy, I love it when a plan comes together, and glad you were able to negotiate the sale. Congratulations for not taking "no" for an answer.
Well done Sandy. Often thinking outside the box and persistence pays off.
Bill, It's so important to make it a team effort so that all parties can work towards the same goal of getting the house sold. And great footnote, about writing a contingency in the contract that the house must appraise for the contract price. I do the same.
Ritu, Often our business can be a bit frustrating. But, we must do the best that we can with what we have to work with.
Paul, Thanks for the input. Sometimes I present my own offers, depending on the set of circumstances. In speaking with this agent, he knew that the house was a bit over priced and we could have an appraisal issue.
Jennifer, It is hard when a seller shuts a transaction down. Sometimes it's hard for them to accept the fact that their home is not worth what it used to be worth.
Lou, A seller has to start somewhere, and fortunately we were able to get this seller to move off of no on to yes.
Bruce, Thanks. Sometimes it just takes a bit longer to get some people to adjust than for others. It worked out well.
John, That would have killed the deal, wouldn't it - for the listing agent to give up on his seller?
Myrl, Sometimes you have to find the right set of circumstances for each person. Ingenious thinking... in going to the seller before his meds kicked in. Great job!
Mary, Isn't it funny...in our business people say no every single day. Sometimes we just have to remind them to turn that no into a yes.
Gabe, Persistence in this business does pay off.
Sandy,
Great job by you and the other agent. Buyers and sellers emotions often run high. It was good that the agents checked their emotions at the door.
It is certainly tough to get sellers to understand the fact their house must appraise and has taken a significant decrease in value in Oregon. We just lost a deal after our seller countered an offer at an amount much higher than we had recommended. They initially insisted we price it higher than we recommended after walking the comps. We even sent new comps with the offer they received. Good news is we have a sign in the yard and get leads off the sign.
Textbook case of how the job should be done. Thanks, Sandy.
Richard, I agree that buyers and sellers emotions often do run high - and in these situations it's up to us to keep a cool head and remember that this is a business transaction.
Kira, Unfortunately those overpriced listings can cost us, as agents, money. It costs in marketing, time spent, advertising and phone calls. A sagging sign in the front yard, on a house that's too high isn't good for business either. It's tough for many owners today to come to terms with what their home is worth in today's market. For some, time heals that...for others it's a lost situation.
Derenda, Thanks. It's great when they come together like this one did.