3,345,237
If the person is truly a client and I had a relationship with them having listed and/or sold homes with that client I would advise accordingly and write the offer. If that person is not a client ... no history ... I personally would spend my time doing something else ... like maybe watching paint dry.
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Inna Ivchenko
Encino, CA
-
Debbie Gartner
White Plains, NY
-
Tony and Suzanne Marri...
Scottsdale, AZ
-
Marco Giancola
Miami Beach, FL
-
Lyn Sims
Schaumburg, IL
-
Eve Alexander
Tampa, FL
-
Kat Palmiotti
Kalispell, MT
-
Bob Crane
Stevens Point, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Mimi Foster
Colorado Springs, CO
-
Georgie Hunter R(S) 58089
Haiku, HI
-
Pete Xavier
Pacific Palisades, CA
-
Fred Griffin Florida R...
Tallahassee, FL
3,988,007
Well it is clear the buyer doesn't value your opinion or expertise and thinks he is the expert. That would disturb me more than having to write the lowball offer.
-
Troy Erickson AZ Realt...
Chandler, AZ
-
Debbie Gartner
White Plains, NY
-
Carol Williams
Wenatchee, WA
-
Marco Giancola
Miami Beach, FL
-
Bob Crane
Stevens Point, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Susan Emo
Kingston, ON
-
Kathleen Daniels, Prob...
San Jose, CA
-
Steve Higgins
Kelowna, BC
-
Pete Xavier
Pacific Palisades, CA
3,587,960
What do you want to do Patti? My two sense: If this buyers is a true bonafide buyer than whip up the offer and don't expect anything from it. It takes 10 mintues to write one up, no big deal. If he's just playing a game spend you're time attracting buyers that are actully serious about buying a home.
-
Troy Erickson AZ Realt...
Chandler, AZ
-
Marco Giancola
Miami Beach, FL
-
Bob Crane
Stevens Point, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Mimi Foster
Colorado Springs, CO
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Steve Higgins
Kelowna, BC
4,272,548
Your buyer must be a true negotiator however they may just irritate the seller enough so that they won't even look at their offer or to counter. I often return such offers with "We are too far apart to even counter your offer!"
-
Marco Giancola
Miami Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Melissa Jackson REALTOR
Azle, TX
-
Mimi Foster
Colorado Springs, CO
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Steve Higgins
Kelowna, BC
5,104,931
If this buyer is a "true" client you have to write the offer... you must obey all lawful instructions of your client and there's nothing unlawful about a lowball offer.... maybe it's stupid, but not illegal.
-
Richard Weeks
Dallas, TX
-
Brenda Mayette
Glenville, NY
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Steve Higgins
Kelowna, BC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Anita Clark
Warner Robins, GA
5,583,278
write it up...deliver it.... preface delivery with "don't shoot the messenger"... relay the bad news to the buyer.... then cut the lace off his panties and let him run!!
-
Marco Giancola
Miami Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Mimi Foster
Colorado Springs, CO
-
Fred Griffin Florida R...
Tallahassee, FL
953,717
From what I was taught, an agent does not have the obligation to write up an offer (yes, it's an absolute thing that listing agents must present all offers), the agent can drop a client at any moment that the business arrangement doesn't seem to be a fit (consult your broker &/or state assoc. attorney line-there maybe legalities to be concerned about in certain situations).
If you decide to continue on, some clients learn over time and some never learn, it's really up to you on how you set the parameters of this situation.
Unrealistic buyers that don't heed sound advice need to be given the boot.
-
Debe Maxwell, CRS
Charlotte, NC
-
Mimi Foster
Colorado Springs, CO
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
1,390,113
You can advise and educate all you want, but the client gets to decide what to offer. Hopefully, a negative response from the seller will speed up the education in this case!
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Steve Higgins
Kelowna, BC
1,052,321
1. When a home is overbuilt for its area (or immediate market), it helps the other smaller homes more. 2. If the home has already been appraised, condition issues have been taken into account. Does your buyer think that he has more chops than the appraiser? 3. If this is a first with this buyer, I would go ahead and write the offer and tell him we're going to do it your way this time, but you should not expect a response. 4. If this guy wants a $500,000 house he should be looking at $500,000 homes.
-
Steve Higgins
Kelowna, BC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Pete Xavier
Pacific Palisades, CA
679,404
I would write the offer and hope the seller is not offended enough to reject the offer, but might counter back. Either way you have done the lawful thing. I've had clients do this before and we ended up putting the deal together. You just "never" know. Wishing you the best!
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
-
Pete Xavier
Pacific Palisades, CA
2,684,109
Write the offer. Prepare to get it thrown back at you, with no counter.
-
Debe Maxwell, CRS
Charlotte, NC
-
Steve Higgins
Kelowna, BC
-
Candice A. Donofrio
Fort Mohave, AZ
1,239,901
Patti Lovell
When I was brand new I allow first time buyer to try the taste of offering process and I needed to practice contracts. After getting rejected I tell them how many offers rece'd and how much off they were. If they do not want to learn that is the end of our relationship.
Starting 2nd year I balk at the buyers and tell them on the spot that does not work. In our area even during deep recession every offer was way over listed price. If today your CMA shows 105% over listed price was the average, you offer CMA or market price you are likely to be 6th position since there are likely 5 over your offer. In your case, I suggest you state your broker will not allow that practice and your(soon someone else) client get serious. Most realtors here will show just show a few properties that meet their requirement if they do not move forward adios.
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Candice A. Donofrio
Fort Mohave, AZ
1,712,676
Talk to an appraiser.
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Pete Xavier
Pacific Palisades, CA
1,026,993
The thought of a Buyer in this price range (at least in my market) is attractive. However, he's NOT a Buyer in this price range and I have better things to do than writing offers for people who know everything and won't listen to reasonable advice. I have met this guy many times in my career. I don't work with him anymore.
Run, Forrest, Run
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Debe Maxwell, CRS
Charlotte, NC
-
Pete Xavier
Pacific Palisades, CA
805,939
Write it and run. Good luck.
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
117,135
For some clients, you do need to write up a few low-ball offers and let the client see the response to it. When an offer comes in that low, there is not even a chance of negotiation. You can explain that if the listing price was 100K or $200K less than the actual price, it would have 20 offers in a day, so there is no reason for the seller to go down that low, before even trying somewhere in between. Also such a low ball has a risk of offending the seller so badle, that even if the buyer were to increase the offer, they may not even strike a deal then because they have been offended already.
Fun times!
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
2,781,303
Just like you posed your opening question then add...we can start a big bidding war if we invited everyone at your numbers which would drive the price up anyway so you see this wont work. Try again its a great home
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Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
564,494
Patti Lovell - Sounds like you've received some great thoughts on this question... I wish you the best!
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Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
711,852
Explain to your client that you will write what he is asking, but the comps do not justify it and he runs the risk of making the seller extremely angry with him and perhaps never wanting to entertain a more realistic offer in the future. But you will write what he wants.
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
989,652
IMO you have 2 choices - write the offer and explain to the listing agent what you realize and/or tell the client you have a reputation and can not in good conscience write that kind offer.
HOWEVER - it may be that home is priced way high for the area - appriased price is not always selling price specially if a home is over built for an area!
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
216,904
Place the offer and duck! lol. Good luck!
-
Fred Griffin Florida R...
Tallahassee, FL
-
Nina Hollander, Broker
Charlotte, NC
1,045,440
I would likely follow the advice of Kathleen Daniels but as a side note this is also one of the dangers of OVER pricing if your appraised value (I assume this is appraisal not tax assessment) is $100k less than list and also assuming you are in the LUXURY end price range there. The seller would have benefited greatly from dropping price to near the appraisal value... they would increase their serious buyers. Patti Lovell
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Cindy Stallworth
Alma, WI
321,564
You have provided comps. I would write up the offer. When and if they counter - go from there. Maybe your client will adjust once they loose a contract. Not sure how your market is. Ours is competitive at this moment.
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Debe Maxwell, CRS
Charlotte, NC
1,197,555
Explain the futility, write it up and explain.
-
Debe Maxwell, CRS
Charlotte, NC
509,449
Why is it that your buyer wants to make such a lowball offer? Is it because he thinks the home isn't worth that much or is it because he is wanting to get a good deal? The appraiser already made adjustments on the subject property, I guess he thinks the adjustment isn't correct or he knows better. I think the bottom line is regardless how many education and guidance you give, client makes the final decision. Yes, that means including writing the lowball offer.
-
Debe Maxwell, CRS
Charlotte, NC
1,746,518
Write it up. After a few failed attempts they'll figure it out
-
Debe Maxwell, CRS
Charlotte, NC
7,836,498
Submit the offer as requested by your client.
-
Debe Maxwell, CRS
Charlotte, NC
5,217,409
My response is he needs an agent that does not mind wasting time!
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Debe Maxwell, CRS
Charlotte, NC
400,356
Advise the buyer that if they go too low, they risk alienating the seller. The seller may not counter or even entertain a new, more realistic offer from that buyer.
Once you've advised the buyer, go ahead and write whatever they instruct you to write and if they don't get real very soon, let them go.
-
Fred Griffin Florida R...
Tallahassee, FL
5,049,488
I think you have to write the offer, having provided the appropriate information about value, comps, etc. and see what happens. Bet there will not be a counter, or it will be full price
-
Fred Griffin Florida R...
Tallahassee, FL
1,590
There is no way I would work with this guy. I'm sick of people like this running me; sound like it's just a game for him, If he were serious about buying a home, he would have gotten the message due to his rejected offers in the past. I'm sure this guy doesn't have "buyer's agency agreement with you, so in my state, you are not obligated to write for him at all. I would advise him to google the "best realtors" and soon this clown will realize nobody is going to work with him. I would ask him if he wanted to sell the car he just bought for 25,000 for 12,000? Analogy
2,970
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979,496
Patti - I had an investor client like this once. He would ask me to write lowball offers, and then when the sellers accepted a higher offer, I would try and explain to him that he is not getting any properties because he is not offering enough according to what is going on in the market.
He ended up blaming me somehow, and on the last offer I made for him, he asked me to pay the seller to accept his lowball offer. I explained to him that it doesn't work that way. Why would a seller accept his lowball offer just because he paid them a little extra under the table. I can't remember the exact amount, but it was something like this. He offered $140k on a $175k listing and wanted me to pay the seller $5k to accept his offer. At the time, sellers were getting almost full price offers, especially on lower priced investment properties. So I tried to explain why anyone would accept his offer at $140k plus $5k, when they would get a $170k offer from another buyer? Finally, I realized this investor client of mine was a shady character so I decided to fire him before I got into trouble.
In your case, I would go ahead and write up the offer (after I let them know I felt it was very low), and submit it to the seller. If they don't accept, and no counter, you will know why. If that hope eventually accepts a higher offer, it will be ammo for you to use with your clients the next time they decide they want to buy a home.
4,936,727
I am their agent, so I have to do what they tell me but remind them that they will probably not get a respond and how they would feel if they were the sellers.
5,868,689
If they are adamant, write it. They will find out quickly it won't work.
27,808
That's one of the reasons I chose to work 90% with sellers about 20 years ago... :)
1,525,616
Give the buyer the facts and realize that some buyers won't listen to your profesional advice. If the buyer refuses to listen, write the offer and let it play out as it will.
1,503,028
I'd tell them that whether or not you like the color of the paint does not impact the value of the house. I would not write the offer as it would be a waste of my time and don't want to become known as a "low baller" agent.
1,622,432
417,221
Tell buyer you will send offer but expect no response as is an insult. Perhaps they include preapproval, underwritten and proof of cash funds to demonstrate they are serious. If they don't have a solid loan commitment from known lender and have cash in checking account you are wasting your time and they will shop you until you drop
1,617,916
599,274
You are responsible for providing all offers, so provide it. Then tell the Buyer they need to be realistic or find a new agent because you are not going to waste your time on ridiculous offers.
1,726,096
Since you are his agent, you are required to represent him. When the offer is flat out rejected, if he shows no signs of sanity, fire him and stop wasting your time and money.
3,071,489
1,466,207
Patti Lovell Your buyer has to learn the hard way. Write the offer and let your buyer chalk it up to experience.
4,800,082
I would let him/her know that the odds of an acceptance are slim and if he insists on making the offer, you will charge him $150 to write it up which will be credited to him/her upon the successful closing of the property.
2,182,552
I would save time and say let me call this into the Listing Agent , let them turn it down and say now what do you want to do ? I also would probe the Listing Agent as to what they've turned down so far ?
3,626,530
IMHO you have two choices either present the offer, or fire the client.
4,883,260
I would ask them if they would like to be represented by another agnet.
1,844,301
Personally, I would not write the offer & tell the buyer that & the reasons why. It's not realistic & your data proves that.
Way before this I would have asked the LA how did they arrive at the price. There could be something there you just don't know about.
I hate it when buyers deduct things/changes they want to make to a house.
1,153,794
No real comps tells me to give it a shot. How long does it take to put an offer together? Nothing tried nothing gained!
613,494
Too late...
Things like this need to be discussed before you show property.
When you have reality talks with the buyer before making an offer, you can educate, enlighted or give clarity.
Educating after buyer wants to make an offer sounds too much like an arguement.
Eve
2,436,470
If it's a client, I'd write up the offer and submit. Maybe after getting a strong "NO" from the owner they'd start listening to you. If they didn't, I'd let them go so they could find another agent.
4,319,419
Patti Lovell - do you have to work with this buyer?
Buffini & Company taught me how to say 'Bye' to such buyers.
1,544,068
716,049
Simple. Fire your client before noon in the morning. And get yourself a real paying client in the afternoon.
6,393,609
You could write it up, sometimes those offers get accepted, but not likely in this market.
you could refer this client to an agent with more time on their hands to waste.
or you could just quit unless your clients listens to your advice.
5,230,159
Patti Lovell - I'm so sorry you're dealing with this and we've all been there, done that! Typically out of town relatives are steering the ship in my case but, for you, it sounds like they're just being unreasonable. Personal preference does not matter when it comes to a recent appraisal!
I would write it up and provide an explanation to the listing agent that the buyer will need to do x, y and z and "Let's see if we can make this work!" Sometimes just extending the olive branch saves embarrassment on your part and may get the negotiations started. In the meantime, keep the information/data coming to your buyer.
You may even suggest having an independent appraisal done by your buyer. Suggest to him that since his valuation is so far apart from the seller's, he may want to spend the $500 for an appraisal. Tell him it's an inexpensive exercise to potentially get hundreds of thousands of dollars in a price reduction! Perhaps when he sees an independent appraisal, he'll see the light!
GOOD LUCK, Patti!
637,434
Wait a minute! Are you under the impression you HAVE to write that offer? If they are a PAST client, that does not obligate you in any way--only if you want to. A client relationship ENDS when a transaction has closed. If you decide to write this offer, then to establish a client relationship--again.
Would I write up that offer? Depends who the buyer is and the location. Here in Carmel-by-the-Sea there is no way anyone would look at that kind of offer, whether the home sells fast or not. It's not the home, it's the LOT LOCATION. I might write it if the potential client is someone who is known for his business acumen, not someone out of the blue who doesn't understand our real estate market.
5,772,575
Patti,
We once had a situation where the buyers agent insisted on being stupid and bringing his clients offer $1 million lower than asking. Then he insisted on being the one to present it. Our seller agreed to the meeting. After the pompous presentation , our seller took the offer rolled it into a ball and threw it at the agent. He uttered one sentence, You will never be welcome here again! Our seller was a major shaker and mover. The agent moved to San Francisco from Los Angeles, and became a Starbucks barrista! A
3,986,258
529,983
You have received excellent advice here, Patti. Let us know how it goes!