613,494
The biggest mistake agents make with buyers is that they "chomp at the bit to show them properties "...
If you want a buyer to listen to you, then you need to have a reality chat/counseling session before you agree to be their agent.
Every time I had a unrealistic buyer tell me about the market and that they will also low-ball...my response was "sorry, but no one is giving away their properties and I WILL NOT BE ABLE TO HELP YOU"
Immediately, they BEG me to work with them and then promise to take my advice. I set myself up as an expert who does not need them if they plan to be unreasonable.
If I did what everyone else does...put them in a car, drove them around for hours and then they wanted to low ball, they would not hear a word I am saying, because they would think I am just like all the other "pushy" agents...too late now...
What is wrong with not working with every one who breaths?
Eve
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Brenda Mayette
Glenville, NY
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Nathan Gesner
Cody, WY
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Sharon Altier
Elmhurst, IL
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Tony and Suzanne Marri...
Scottsdale, AZ
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
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Candice A. Donofrio
Fort Mohave, AZ
1,052,211
The former! "Here is what similar properties recently sold for, here is what similar properties' rental rates are, and this is a range of cap rates in this area for that property type. To get X yield, you will need to be in X range."
Sometimes it is I suggesting a lower offer or to not make one at all.
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Brenda Mayette
Glenville, NY
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Nathan Gesner
Cody, WY
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Tony and Suzanne Marri...
Scottsdale, AZ
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Sandy Padula & Norm Pa...
, CA
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Michael Jacobs
Pasadena, CA
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Candice A. Donofrio
Fort Mohave, AZ
3,071,489
We have that discussion BEFORE they sign a Buyer Broker - just as taking overpriced listings can be pointless - so can working with Buyers who always want to "under offer"...
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Brenda Mayette
Glenville, NY
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Fred Griffin Florida R...
Tallahassee, FL
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Candice A. Donofrio
Fort Mohave, AZ
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Eve Alexander
Tampa, FL
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
352,976
Starting with a Buyer Appointment might eliminate that ever happening. I’ve had clients want to submit a low offer (and do so only with disclosure of why this can backfire and the comps that we carefully go over). I’ve found that having the buyer consultation first before going out to view Homes does discourage this from happening.
As much as we want to represent our clients we want them to be serious if their goal is to buy a home. Often they have either read or heard of friends doing that and winning, but more than likely a different market. Not wasting time on buyers on buyers who might not be serious is key and better to weed them out sooner than later.
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Nathan Gesner
Cody, WY
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Fred Griffin Florida R...
Tallahassee, FL
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Sandy Padula & Norm Pa...
, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Eve Alexander
Tampa, FL
1,725,996
We are required to if representing our principals. After it fails, we can fire them.
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Ron and Alexandra Seigel
Carpinteria, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Teri Pacitto
Westlake Village, CA
5,216,398
I would make them aware of my CMA and their chances of success! Then, I would present the offer if they want it presented!
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Ron and Alexandra Seigel
Carpinteria, CA
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Kasey & John Boles
Boise, ID
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
4,882,355
In this market I would have set those expectations before we started looking at houses.
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Eve Alexander
Tampa, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
1,502,998
I'd discuss with them the likelihood of the offer being rejected and where I believe they should come in. In the end, it's their money and stranger things have happened.
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Nathan Gesner
Cody, WY
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Michael Jacobs
Pasadena, CA
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Candice A. Donofrio
Fort Mohave, AZ
3,345,091
This might sound crazy ... in my market these days ... I make the recommendation of offer price and 99.9% of the time the clients agree to it. On rare occasion a client may go higher.
I always run a CMA ... talk with the listing agent etc.
As for writing low ball offer ....
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Brenda Mayette
Glenville, NY
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Nathan Gesner
Cody, WY
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Candice A. Donofrio
Fort Mohave, AZ
2,781,163
If the client relationship hasn't already discussed this when first meeting then something is wrong with the relationship itself. That team wont score
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Tony and Suzanne Marri...
Scottsdale, AZ
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Eve Alexander
Tampa, FL
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Debe Maxwell, CRS
Charlotte, NC
4,572,117
The short answer is both but...and it's a big but...
It depends. On the particular client. On the property. Other factors.
The typical routine is to share comparable sales with a buyer prior to writing an offer but this is preceded by a discussion about market conditions and their goals.
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Brenda Mayette
Glenville, NY
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
3,416,038
Always, and i also find out if there is any other offers, and in a market with a shortage of listings and lots of buyers, the chance of a low ball offer being accepted, is as low as winning powerball or getting hit by lightning
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
6,393,154
I got a half price offer a few weeks ago, rather than counter I ran a cma, sent it to the other agent and suggested that they share it with their client.
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Bob Crane
Stevens Point, WI
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Nathan Gesner
Cody, WY
5,772,575
Nathan,
We think that both Wayne Martin and Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 make the case perfectly. A
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Nathan Gesner
Cody, WY
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Sandy Padula & Norm Pa...
, CA
809,258
Yes, CMA for sure and then submit. Sometimes it takes losing an offer or two before they believe it. Is the buyer an investor or buying to live in? What is considered low ball?. I will never forget two stories my dad told me when I first got my license. The first was about putting in a low ball offer. Buyer wanted to submit $50k low. Dad said no way it would be accepted but he wrote and submitted. Offer accepted no counter. Seller just wanted it sold. I have since written a handful of offers that I was certain wouldn't be accepted and surprisingly they were. The other story was about a seller, will tell it some other time because this already got too long. Of course there are many factors and at a point it can be a waste of time, unrealistic and unreasonable, but we never really know what a buyer or seller will do until it is done. -Kasey
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Brenda Mayette
Glenville, NY
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Nathan Gesner
Cody, WY
628,764
I would run the CMA, but also tell them the ramifications of insulting the Seller; They may not get a counter offer and maybe flat out rejected. If the offer is ridiculous I would also suggest doing an LOI instead of writing a full blown offer
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
1,466,207
Nathan Gesner Always run a CMA first to have a base line. If they are insistent, I would present the offer.
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
5,049,033
I would discuss the CMA and market conditions first but present the offer if they still feel it's what they want to do.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
5,583,278
Do Both....
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
1,712,676
We try the CMA route first.
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
4,434,127
4,319,419
Nathan Gesner - I run the report to give them an idea where they should be. And it is up to them to decide what to write.
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Nathan Gesner
Cody, WY
3,988,007
I provide full service for my clients and a CMA is part of that.
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Nathan Gesner
Cody, WY
177,849
3,986,258
I will try to reason with them and then submit the offer
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Nathan Gesner
Cody, WY
969,888
always show CMA and don't have the time to play games.
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Nathan Gesner
Cody, WY
547,327
If I am working with a buyer and they like an overpriced property that has been on the market over 90 days, it's time to dance. Just closed an overpriced listing yesterday, timing is everything, my buyers are happy.
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Nathan Gesner
Cody, WY
216,904
I agree with the other comments noted, but would certainly agree that you should run a CMA. Thereafter, submit the offer that is agreed upon. If rejected outright, you will sell them on the most reasonable offer. You can decide if you want to represent them thereafter; if they are not cooperating. Good luck!
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Nathan Gesner
Cody, WY
989,652
I do a CMA on every property before writing an offer
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Nathan Gesner
Cody, WY
2,684,009
What Eve said, and what Teri said.
Teri Pacitto
Mike & Eve Alexander
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Nathan Gesner
Cody, WY
5,104,931
Of course, I do a CMA. I do a CMA everytime a client wants to make an offer regardless of the price they want to offer.
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Nathan Gesner
Cody, WY
1,153,794
Technology allows us to whip up an offer in minutes if not seconds. I've had some pretty rough ones pass muster. #1 tip, get as much money as possible for their initial deposit if they're truly in it to win it. If they lose out at least you'll know that they not afraid to sign that check.
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Nathan Gesner
Cody, WY
5,229,945
Absolutely both. I ask them how much they like the house, how many boxes it checks off and what they think their chances are of submitting a lowball Offer on a property in a community that typically garners 100% list-to-sales price!
Most of the time, they GET it but, if they insist on presenting a low-ball Offer, of COURSE I will present it. Sometimes it takes losing one to get their attention!
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Sandy Padula & Norm Pa...
, CA
4,800,082
I will advise them of the risks and if they insist, I will submit it.
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Debe Maxwell, CRS
Charlotte, NC
911,328
I explain the risks and the possibility of them losing all chances of getting the house. I've had sellers crunch up low ball offers, then give me instructions to tell the agent the offer is rejected, and don't bring that effin idiot buyer back onto my property for any reason.
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Debe Maxwell, CRS
Charlotte, NC
7,836,129
Explain the issues and submit the offer.
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Debe Maxwell, CRS
Charlotte, NC
921,504
I roll with the client UNTIL the 'sold' results come in.
Then it is no longer my voice or opinion but the market place saying "snowballs do not fare well in Florida."
If they are still hoping to catch the 60% discount boat that left the pier in 2007, I advise a different strategy must be used. Their current paperhanging strategy comes with a $60 a pop fee.
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Debe Maxwell, CRS
Charlotte, NC
44,891
Yes. And I would let them know that there chances of getting the property are low. Another thing I will say is "Are you okay if you do not get this property?" Once they get all of the info, I let them decide if they want to proceed or raise their offer.
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Debe Maxwell, CRS
Charlotte, NC
544,014
Definitely run a CMA. In a seller's market some sellers think they can name any price. If the list price is unreasonably high, then the "lowball" offer may actually be the true market value.
4,936,605
5,868,482
I ALWAYS do a CMA before a buyer writes an offer, and if it is unreasonable, be sure to point that out, especially if they really like the property.
637,434
And then the buyers agent is BEGGING the listing agent to at least counter so they don't look foolish in front of their demanding client. Have one agent who then argues with me, hoping I will get my seller to come down to their ridiculous price. Sorry, with oceanfront homes it's all about LOCATION and VIEW.