How long has your home been on the market? Three months, six months, it's not surprising if it's been on the market even longer but it is time to take a very serious and hard look at what it is going to take to get your property sold. Perhaps, you've reduced the price a couple of times and you're asking yourself, "how much lower?" It is a buyer's market afterall, and therefore, they do have an advantage but that should not mean you have to accept an unreasonable and unrealistic offer. Be prepared for a buyer who might very well present a very low offer, even as much as 10% or more below the listing price.
First and very importantly, Do Not Be Offended, Do Not Take It Personally. Instead, view the offer as an opportunity to begin discussion and start negotiations. Do not slam the door - Negotiate!
Remember offers are a negotiation game and recognize that the buyer is serious by even making an offer. (That's important to keep in mind, the buyer is serious or there would be no offer.) Assess your own goals and determine how much you really need from the sale in order to meet your needs.
Have your Realtor keep a check on market conditions and try to determine if something has happened in the market to cause a buyer to make such a low offer. It is just as important for you, the seller, to keep a check on inventory in your own neighborhood. How are similar homes priced? How does your home compare to the other homes in your neighborhood. Are you too high?
Negotiate!!! Keep it going as long as possible. Trust your Realtor and clearly communicate your limitations. If you are facing financial distress, be open with your Realtor who is working on your behalf to provide professional guidance and get the best possible price. Let your Realtor know if you may need to do a short sale, talk about your payoff if you think you may be headed for foreclosure. You and your Realtor could very well work out a listing price that will get your property sold to ward off any serious financial trouble. Work together and ensure the selling agent that you do want to work with them. Stay engaged in the process as long as possible. Make your final offer but keep in mind that you do not want to lose a buyer over a couple of thousand dollars. Also, the selling agent should remind the buyer of the same thing. The difference in a mortgage payment is very small if the deal comes down to a few thousand dollars difference.
And probably the most difficult thing to do is to be patient with the process. In a market where inventory is higher than normal and foreclosures have increased the levels even more, selling takes time. Work together to reach a fair and reasonable deal. This is good advice for buyers too - work with sellers to reach a fair and reasonable deal. Understand that not everyone is desperate to sell and what is happening in one market is not at all, what might be happening in another market. Let the actual sales data tell the story and then make your decision based on tangible market information, this goes for both buyers and sellers.
Sellers should also consider other options rather than always reducing the price. If your property is priced right, consider offering a Home Warranty for the buyer or paying a certain amount toward closing costs.
CLICK HERE: NORTH GEORGIA FORECLOSURES, BANK OWNED PROPERTIES
Donna Yates
Georgia Realtor
North Georgia Blue Ridge Mountains
Coldwell Banker High Country Realty
706-633-0644 cell
800-307-0777 x252 office
email: donna@ellijay.com
websites: www.move2northgeorgia.net | www.buynorthgeorgiarealestate.net
Realtors at Coldwell Banker High Country Realty consistently demonstrate strong negotiation skills. The average list to sales ratio is consistently higher among Coldwell Banker High Country Realtors when compared with other similar companies. This is a strong indicator of great negotiating skills.
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Georgia Realtor assisting home buyers and sellers with North Georgia Homes nationwide. Specializing in real estate in the North Georgia Blue Ridge Mountains.
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Nicely done, Donna...You are right on the money with this. I have had a few contracts fall apart over the past month-and-a-half, that I was able to resurrect because I was willing to keep going back to the buyer/seller and make adjustments that eventually made the deal sellable.
Keep up the good work!
Donna,
Good job! 2-4-6-8, Don't-get-mad; Ne-go-ti-ate!
Mike in Tucson
Donna...
It's excellent advice. That's one of the things we get paid to do. We help our Customers decide when and not to negotiate. Great post :)
TLW...ROAR!
Kim: I had a deal fall apart too, recently and the buyers just refused to accept that our market is not in the distress their market is in. They lost out on a property over refusing to believe the actual sales data.
Mike: I'm always amazed when a seller gets mad and won't even counter, especially in this market. For goodness sake, at least counter.
TLW: So glad to hear from you. It's been a long time and I haven't been able to spend as much time on AR as I used to. We as Realtors, really do need to try our best to help our buyers and sellers find the best deal that works for everyone. As for me, there is no substitute for factual sales data.
Donna, I don't know why people get offended--they got an offer and you're right, need to negotiate especially in these times. You never know if they can reach a price they can both agree on if they don't negotiate.
Hi Carole: Real estate is very emotional and understandably, many sellers feel it's an insult to them persoanlly, when an offer comes in that seems to be less than what they feel their home is worth. Especially if it's a home that they more than likely love and have cherished memories there. The emotions have to be balanced with logic and reason though and that's where a real estate agent can help the seller through the emotional jolt of a low offer.
I have had my share of transactions over the years that seemed to have NO CHANCE of getting done , until the lines of communiciatins opened and buyers and sellers somehow got it done with a little help from their (me) friend
James: There's much to be said for a skilled Realtor.
Outstanding advice. No is forever. Continuing to negotiate keeps all possibilities open. People need to check their egos and work toward a meeting of the minds. People want to deal with people who want to make a deal. Agents need to stop being carrying pigeons and advise their clients of this fact.
Donna, Excellent advice and I'm glad you said that it goes both ways, for buyers and sellers. It takes two to tango!
J. Philip: Do I ever agree with you - agents must stop and must not allow clients to use them as a carrying pigeons! How true that is.
Barb: Yes, I agree; however, it may actually take four to tango! Agents need to work together too. Thank you for your comment.
Donna, I had to stop back and congratulate you on getting featured! It was well deserved and a wonderful post.
Carole: Thank you my dear friend. I certainly didn't expect it, I just write to try to help someone somewhere but it's certainly nice to have a post recognized this way. I've found that when I write from the heart, those are the ones that seem to get featured. That's why I enjoy yours so much, I can always feel how much heart you have when you write.
3 months is a short time on the market for our area. 6 months is average and not uncommon to see homes 270 days.
Donna, great post... it is about the bigger picture. Negotiation is key and critical for a deal to be worked out and for it to go to settlement !
Russ: Same here and unfortunately with more foreclosures flooding the inventory, even 6 months is average. The price more than anything is what is selling the house in my market area.
Christopher and Stephanie: When communication stops, everyone might as well go home and spend some much needed time with family and friends. Communication lines have to stay open if there is to be any chance for success.
Morning Donna, Excellent insight into the buying/selling process. Don't take it personally and be willing to engage !
Very nicely put Donna ! - I had two instances last year when sellers wanted to tell buyers to jump in a lake because of their low offers, but after keeping them calm, we were able to 'negotiate' a middle ground that both were happy with ! ... too many sellers are so quick to dismiss lower offers - I think sadly, pride is an issue with many.
Great post Donna !
Cheers !
Sheldon
Donna - this is excellent advice for sellers in this market. Buyers, in almost all cases, are coming in with low offers and sellers have to expect this. Buyers are also taking the approach that everything is negotiable - repairs, closing, closing costs - and they seem to be willing to walk away to lookat other homes if they cannot get what they want. The message you have delivered is a tough one, but essential yo keep in mind in you are serious about selling.
Jeff
Donna: Great post.... Buyers and Sellers alike need to tak note here and understand the power of Negotiation.. Both sides always want to see what they can get... the other thinks it is a little to much and then throw in the towl before they attempt to negotiate.
I like to tell buyers that sellers won't usually go below market value, but they will come down TO market value if they are overpriced.
Yes, we must negotiate. The offer, even when low is just the first step in what the seller is trying to achieve, the selling of their house. Take the first 5 minutes and be mad at a low offer. Then sit down with your REALTOR® and realize it is not personal, it is business. The buyer is doing the same that they did when they bought the home, obtain it at the lowest possible price. Counter offer at least once.
I have to agree with you. We just wrote an offer for a buyer on a house and the buyer offered 10% off the asking price. I am not sure why the seller did this (with only 18 homes selling in our area last month) but they countered back, but when they countered, they didn't even meet the buyer halfway. The buyer decided to walk and go explore other options. It could have been a great deal, but I find that sellers are being too unrealistic with what their house is worth, and not accepting what the market conditions are, causing them to be too aggressive with responses, if they respond at all. I now wonder how long that house will be on the market before it sells and how many price reductions it will take. My guess is it will sell for less than our buyer was willing to pay. Sad.
Donna - This is excellent advice, and I always counsel my clients in the same manner. Great job!
I am still seeing sellers that "don't get it" when it comes to neogitating a sale. They still say "I NEED" this amount. Only in a perfect world.
Bravo Donna. Are you sure you are not in RI? It seems to be the mind set here "buyers low balling, sellers not answering offers for 2-3 days". I hope many read this post so the sellers don't get offended and the buyers start to realize that everyone that is selling is not in trouble. All I have been hearing lately is "you would think in this market....etc. Most excellent key word "Negotiate!!!". Also seems that 90% or lower is often the first offer. Sorry to say it is often lower than 90%. BTW lovely picture of the log cabin surrounded by snow.
Perfectly posted. I preach the same thing to sellers, dont be afraid of an offer...PLAY. It's ironic how many sellers will just walk from an offer on the table...then about a year later when they still have not sold, they end up taking much less than that offer.
Bill: It really is just business. I do feel for the sellers though. They are facing a tough time for sure. But if the roles were reversed, would they not do the very same thing that our buyers are doing? Wouldn't most of us, afterall the end result is getting the best deal possible but these days it's tough trying to balance that with making it a win/win for everyone.
Sheldon: Good for you about calming down your sellers. This is one of many ways a Realtor can be a true asset to the client.
Jeff: Good point. To me everything IS negotiable and always has been whether this market or some other market. It just seems that buyers' expectations are so much more that is really realistic or even logical in many cases.
Roland: It just doesn't make sense to do anything other than negotiate and take it as far as it can possibly go. What does either party really have to lose?
Christianne: I do think for many sellers it is quite a shock for them to realize how much the market really has changed.
Kristi: That's a very good point. I'm going to remember that one.
Scott: Absolutey, counter at least once! It amazes me that a seller won't counter. Who do they think they are really punishing?
Jason: That really means a great deal to me coming from you. Thank you.
Diane: This is where sellers need to get very real about what it is they truly need out of the sale of their home.
Lisa: There too, eh! I think it's pretty much across the board. I am amazed at the comments which seem to substantiate that most of us in all parts of the country are experiencing the same issues with buyers and sellers. I do believe, those of us who are still Realtors when this is over will be much stronger and wiser and therefore, our clients will come out the winners whether buyers or sellers. Thank you about my background. It's a simple little cabin but just too charming in the snow. This is one of my faovorite pictures. My best to you in RI.
Paula: Great point. Thankyou.
Negotiating is a great suggestion. I think most buyers, especially in this market, plan on doing at least a little negotiating. The response to the counter offer will definitely let you know if the buyer is serious about purchasing the property or not.
How timely! I just wrote a post for buyers telling them not to be afraid to make low offers and to try to keep the dialogue going. Great post!
Even more frustrasting is when the listing agent sets the tone with the sellers and are unwilling to negotiate. We wrote an offer on a property that was a relatively new listing. The market was coming down and we offered 1.3 on a 1.5 mil property. Not a bad place to start we thought.
The listing agent (a self appointed governor of pricing in the area) was indignant. Instead of saying "I'll see what I can do" she railed at me with "Where did you come up with this price?" and "My seller won't even counter to an offer like this".
Oh well, onward and upward. And that same home (vacant) is still on the market 15 months later...And they raised the price!
I like the review you prepared above with simple thoughts about what to think about and what to do. I wonder if we as Realtors can make a difference for sellers upfront by preparing them for the possibilities of what can happen with their house and offers so that they are not as suprised and "react" when a low offer does come in. Bottom line is sometimes a low offer taken is better than no offer....
Donna,
This is a great post...congrats on the gold star. It is true that seller's need to get past that emotional reaction and KEEP THE NEGOTIATIONS OPEN and buyer's also need to understand that not every one need to sell...and markets throughout the country are different too! All good points!
keeping thelines of communication open is so very important. I never kill the messenger.
Finally! Someone said it. We have seen so many sellers simply refuse to negotiate. Taking an offer personal is counterproductive in this market.
Good post with very good information on keeping the deal open. Thanks
I wish I could get an offer on some of my listings. It is coming up on a year for one of them.
Donna, sometimes they get too stubborn and proud and just plain unreasonable. I had a listing leave me after I presented four, count them....4 written offers but they weren't as much as they felt the house was worth. Humm....go figure. If a person won't pay that for the property then it's probably not worth it. Yes?
Later in the rain~Deb
Donna- you nailed it!... keeping both parties open and willing to negotiate is the solution for any transaction. If we are honest up front and set a realistic expectation, this becomes easier. As you said so well, it takes patience. Communication is the key and this is such a great season to add value to our clients by doing this well. Great post!
Great post. Right on the money as well. We have sellers everyday that forget they are actully trying to sell thier home so it's not personal.
Chad & Sara: I will never understand someones refusal to negotiate.
Craig: Thank you. We all strive to get the best deal possible for our clients, whether buyers or sellers. The best deal can only happen if lines of communication remain open.
Angelica: Depending on your market and given the current state of our economy, I'm not surprised that listings are on the market for a year or even longer. High inventory levels make the absorption rate even longer in some cases. But I do think some serious analysis should be done to determine what it's really going to take to sell. How long can a Realtor continue to pay advertising costs by carrying a property that won't sell? We are in business too, and that's a question that a Realtor needs to ask. I mean, at some point, by the time the property does sell, your pay day may be flat.
Deb: Sometimes sellers need to be reminded that the market sets the price not the Realtor.
JB: I think patience is the most difficult part of the process.
Marian: I think the seller should at least give the buyer the benefit of the doubt that the buyer is serious just by the plain fact that the buyer made an offer in the first place. Sometimes, I have to ask my sellers to put themselves in the buyer's place but that works both ways too.
Diane: I think many of us are facing the same challenges.
Lynn: If that was my agent - I would have to say "you're FIRED!" 1.3 mil offer on 1.5 listing price - not a bad start at all.
Kelly: Absolutely! I am a firm believer in preparing the seller upfront. With the challenges we are facing in the housing market, this is not the time to hold back. Realtors need to be upfront and straightforward, presenting tangible facts and help the sellers understand what to expect and why.
Lori: It can be and often is very emotional but the emotion really needs to be balanced or at least tempered with some level of logic.
Michael: So true - do not kill the messenger unless of course the messenger is merely that and nothing more. A Realtor should not be just a messenger.
Terry: I ask sellers what their objectives are at the time we list and then it's an ongoing process that needs to be revisited and revised as is necessary. I like to have a reality check periodically to see if objectives have changed and if so, how that impacts the bottom line. This could have a major impact on the end result.
Hi Donna, you hit the mark on this post. Good job!!
Keith: It's something I've lived through! I speak from personal experience. LOL
Hi Donna! EXCELLENT advice and congrats on that little gold star! It amazes me that the market status is ALL in the news, all of the talk in the 'hood' and all around us and some clients are STILL not taking the advice of the experts! WHY, oh WHY?! I've come to a realization in the last year that I will absolutly NOT take a listing that I cannot move--unrealistic sellers cost me money and them, time!
Debe: Unrealistic buyers cost a lot of time and money too. Time is money and I've had more than my share of unrealistic buyers. It's tough for everyone right now.
Great well deserved feature Donna. Being creative as a seller and ALWAYS keeping the ball in play with the negotiation are keys to getting the job done ~ a SALE!!
Gary: Also, I think it's important when negotiating to put the things you can't agree on to the side and get the things you can agree on out of the way first. Then that clears the field and allows the Realtor and the client to focus only on the points that are at odds. Seems like it makes for a smoother and even more successful negotiation.
Dear Donna,
Excellent post! I missed it somehow. I love your graphics.
I would have missed this post entirely had you not commented on one of my posts.
Barbara
Hi Barbara: That's the beauty of commenting and reciprocating. I've met many great new people that way. Thank you for visiting.
Great post! In this market it pays for sellers to negotiate with buyers and it takes a skilled professional realtor to do so.
Darrell: Thanks for stopping by. The services of a skilled professional real estate agent cannot be overestimated.