So, you have a buyer who is bound and determined to get a killer deal on some real estate, huh? He’s heard-tell of this here “buyer’s market” and wants to get himself a piece of that action. Even if it takes all year…
We’ve all been there. Worked with buyers who, in our opinions, were unrealistic about the extent of this here buyer’s market and the depths to which sellers are willing to go to offload their properties. They’ve listened to late-night seminars or their Uncle Charlie who provided “expert” advice on how to properly offer on a property (asking price MINUS repairs needed MINUS profit desired MINUS margin for risk MINUS 25%-for-good-measure) without regard for whether or not the asking price is reasonable or not.
They want a deal. And they want you to help them get a deal.
So, you find them exactly what they say they’re looking for. A well-priced home in a good location that needs just the right amount of work to satisfy their need for adding value with cosmetic upgrades.
Yay, sez you! Yay, sez your buyer!
You head for the offer table and the buyer wants to offer low. Really low. Obnoxiously low. Ridiculously low. Unreasonably low. (I’ll stop now, you get my drift).
What do you do?
Write ‘er up.
Yep, write it up as per the instructions of your client. No fussing, no arguing, no defending the asking price. If your buyer wants your opinion, he’ll ask for it. Not to say you can’t provide market data if he seems at all interested, but in most cases, especially early on, he won’t be. He wants a deal and he’s certainly entitled to go after it.
Why shouldn’t you try to talk him out of low-balling?
- The buyer is the boss. It’s his money and he has the right to spend it (or not) the way he sees fit.
- You never know what the seller will accept. If you tried to talk your buyer “up” and the seller accepts his low offer, you’re toast in the credibility department.
- The buyer hired you to be on his team. His wants are your wants. His preferences, your preferences.
- If you argue with your buyer over offer price, he’ll wonder if you’re in cahoots with the seller or listing agent, again, jeopardizing your credibility.
Of course, it’s up to you to decide if you want to continue working with the low-balling buyer! You are certainly entitled to end the relationship if it’s not satisfying to you, just as he’s entitled to make whatever ridiculous, unreasonable, obnoxious offer he wants to. But before you fire a low-balling buyer, consider this…
Think of all the good that can come of this experience!
Um….what good, Jennifer?
Tell ya what – I’ve overstayed my welcome on this blog today, so I'll open the floor to your comments. Any thoughts on why you might not want to fire that bottom-feeding, low-balling buyer o'yours?
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