If you’re like many of us in the real estate business, you’re beginning to see increased interest and offers on your listed properties. This of course is a good thing.
Distorted Perspective
These offers, however, along with the season and different sectors of the economy that seem to be improving, have given some sellers a distorted view on the proper course of action when the offer is disappointing. Many think that, due to these factors, they should hold fast to their list price and consider only a minimal counter offer.
Consider the Circumstances
In actuality the seller’s response should be dependent on a number of considerations. Among them are:
- How long has the home been on the market? This is a reflection of the accuracy of the list price.
- How far off is the buyer’s offering from the seller’s bottom line?
- What does the bottom line actually mean?
Remove the Emotion
It is your responsibility as the listing agent to help the seller remove the emotion from their decision. One of the most affective ways in which to do that is to focus on #3 on the list above. To help the seller fully understand the question, you should ask them to explain their Plan B. In other words, what will they do if they choose not to negotiate with the buyer at hand and the buyer thus moves on?
One Sensible Response
The seller’s decision to not negotiate, not sell and remove their house from the market may make sense. Only of course if they are prepared to remain in their home for as long as it takes for home values to improve. The listing agent needs to discover if the seller is in fact actually determined to follow through with that option or if they are merely displaying “sour grapes.” Are they really thinking that they will wait until later in the year or early next year? Are they thinking that they’ll simply wait until they get a better offer?
Your Skill Set
This is where your skill as a realtor comes into play. This is when your fiduciary responsibility is to help your client understand that these latter decisions are decisions based on what may never happen. Or a subsequent offer may be at a price that, while higher, not enough to offset the additional carrying costs accrued while the home was on the market. To give your clients a thorough understanding of the possibilites and guide them in making the most prudent decision, you must assist them in gaining a clear vision of the possibilities. Remove any doubts in their mind as to your motivation and that your advice is the same advice that you would follow if you were selling your own home. One of the best ways to establish that trust is to “make it about them.” After all, it is their investment and their future. It’s not about your needs, and you must always keep that in mind.
Are you having challenges with current negotiations that you are involved in? Please let us know in the comment section below.
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I recently received an offer on my client’s dad’s property. As the rest of the extended family had input on the acceptance of the offer, the majority felt since the property was only on the market for less than a week, that perhaps they should wait for another ‘better’ offer. Fortunately, my client was the point person and the sensible one. I was able to convey the wisdom of working with your first offer and that the reason we received an offer so quickly was because it was priced correctly. I also stressed that their next offer would most likely come in lower and we never can tell when or if the next offer will come. Luckily the family agreed to work with the offer!