One week into the selling season….how’s it going? With our spectacular weather and both Tiger and Phil out of the golf tournament, the streets were flooded with home lookers this weekend.
A few experiences so far:
1. An agent selling his own house gets seven offers within the first three days on the market. He counters all with a set price that is $8,000 below his list price, and gives the full three days to respond. Less than 24 hours later, he emails the losers that he has accepted an offer. No curiosity what the others might bring?
2. A listing agent – who has no sales on the MLS – lists a house for 5% over the last model-match sale. She hopes that buyers will ignore that the comparable sale was fully upgraded and had no road noise when hers doesn’t.
We offer just under the comp’s sold price, but she won’t counter – you see, she’s had ‘lots of activity’.
3. Another agent on her first sale says she will respond to our offer last night after the weekend open house. At 9:32pm last night, she responds to my inquiry by saying that she too had lots of activity, and multiple offers – and ‘we will not be accepting your offer’.
Don’t you at least counter everyone to see what they might have left in the tank? Our offer was 5.9% under list, and at comp value.
4. Remember a week ago when we sent in our best offer and the listing agent countered it $5,000 higher? The agent, who sells a solid two homes per year, called back yesterday, wondering if I might kick in the $5,000, or if we could split it.
It’s too late now – your bone-headed grab for less-than-1%-more-on-price repulsed the buyers, and they forgot all about you by now. She also divulged that the multiple-offer bidding war consisted of an offer contingent on selling another property, and an offer lower than ours. Meanwhile, this week her sellers will be entering Month Six of sitting on their vacant house, and approximately $2,500 per month payment.
5. With no serious nibbles on my Del Mar Heights listing – and not many desirable replacements to consider – my seller withdrew the listing this week after 35 days. Another example of why the inventory is low – the best alternative for many is to stay put, rather than pay outrageous rents, take out a new 30-year loan, or leave town.
Get Good Help!
These are me favorite posts, offering an informed, inside look into the current state of affairs.
The folks in vignette #4 clearly ignored your oft-repeated tagline, and are eating their lunch due to bush league representation.
Your clients have chosen well, and I hope things start loosening up out there. Man, but folks are playing tight…
Two years ago the price you paid didn’t matter as much because the frenzy was so hot.
Nowadays buyers are smart to draw the line and fight to pay the same price as the last guy, (betting on prices plateauing). How much higher can prices go after popping 20% to 30% or more in the last 2.5 years?
Great post, Jim! These too are among my favorites because you give real interactions between agents in the negotiation process.
I moved from CA in late 2010. I made an offer on a home. It had only been on the market one day, but it was at the bottom of the market here and October. It was a solid offer, and there was one other offer made the same day as me. The sellers countered and included all these disagreements (not on the price) to my offer. I was instantly turned off. I didn’t counter back. A day later, the sellers’ agent called my agent. “Why hasn’t your client countered to our offer? My clients really want her to. We’ll take her original offer–everything she asked for. The other buyers are driving my client nuts with their demands!”
My agent told them I wouldn’t be countering their latest offer. The agent kept asking why and finally my agent said I was completely turned off by their counter and wouldn’t resubmit my original offer. In her words, “I had moved on”.
And I had–only a week later, I found the perfect home, and moved in within 30 days.
Excellent post, Jim! Keep spreading the knowledge and hopefully better informed buyers and sellers will lead to a better experience for all involved!