Los Angeles Home Sellers: If your home isn't moving, consider a reverse offer!

Just ran across an interesting article in the Los Angeles Times Real Estate section.

The article brings up a seller strategy that was used during the recession of the 80s.

"A reverse offer works something like this: A potential buyer has shown more than a passing interest in your house, and the buyer's agent has indicated his client really likes the place. But for some reason, a week or two has gone by and the buyer hasn't made an offer.

Something is holding him back. Perhaps he still wants to look at several other places. Or maybe he's paralyzed because of the news about the current real estate market or economy. It can be any number of things.

So based on feedback from his agent, why not make the reluctant buyer an offer? Maybe knock a few grand off your asking price and throw in a 12-month home warranty. Perhaps agree to wait for however long it takes for him to get approved for a mortgage, or give him extra time to close.

In other words, whatever it takes not only to get his attention but to put his John Hancock on a contract."

The article goes on to say that not all agents think this is a great tactic because it can make the seller seem desperate. However, I disagree.

First of all, this is not something that you want to try with every buyer who walks through the place, only with those that have come back once or twice and seem genuinely interested. And of course you should only attempt this with buyers who have been prequalified for a mortgage.

Secondly, you don't necessarily want to try this during the few weeks of a listing, but after the property has "aged" a bit.

And finally, take a look at the feedback you're getting from this buyer and attempt to fix the problem. Is it that the home needs a paint job or the flooring is out of date? Write a solution (a credit, or an offer to repaint or put in hardwood without raising the price) into your reverse offer.

Look, let's be honest: in Los Angeles and around the country, price reductions are now a fact of life. Until the market turns a bit, I think it's short-sighted not to consider making a direct appeal to a specific buyer who may be on the fence, for fear of coming across as desperate.

Here are some other reasons to use reverse offers:

"One might be when the buyer is using an inexperienced agent and your more veteran agent wants to write the contract to make certain that it is worded absolutely perfectly. Another is when negotiations have broken down and you want to make one last-ditch attempt to get the deal back on track."

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Annie Pinsker-Brown | Stage to Sell
Owner & Principal Designer
310-384-1084
www.stagetosell.biz

"We get you to SOLD so you can get on with your life!"

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Stage to Sell is the premier West Los Angeles Home Staging Company.

Owner & Principal Designer Annie Pinsker-Brown is an ASP Home Stager, a member of IAHSP (International Association of Home Staging Professionals), an affiliate member of the Beverly Hills/Greater Los Angeles Association of Realtors and a member of the Culver City and West LA Chambers of Commerce.

Annie has Staged LA homes for Bravo's hit show "Million Dollar Listing" and TLC's "Property Ladder." She has also been featured in recent articles on Home Staging in Los Angeles Magazine, The New York Times, Costco Connection and Frontiers Magazine.

If you would like to see more of our Home Staging work, visit our website. There is an extensive gallery of before & after photos, as well as a list of our Staged properties currently on the market.