I was so excited today. I got a call from a Realtor that had just showed one of my listings and his Buyer wanted to make an offer. This was exciting because I just placed the property on the market last week. It was an expired listing and a brand new home. The folks that own it had closed on it back in March with the intention of flipping it for a small profit. It's a great house. 2 stories, 4 bedrooms, 2.5 baths and 2093 sq. ft. of living space. This particular builder builds a very attractive house. It was purchased for $209,000 and was previously on the market for $279,000 and then reduced to $259,000. Well after 6 months and very few showings the listing expired and they called me, off of one of my expired letters, of course. Anyway, now they are a little desperate. Hey, a vacant house with $1,500 a month payments gets old real quick. So I did an analysis for them and decided the house was worth $235,000 to $239,000. The only problem is, there are about 30 just like it, on the market. Since they now need a quick sale, I suggested Range Pricing it from $219,000 to $239,000 trying to sell at $229,000. They won't make any money on it but they can recoup their money and get out before it gets worse. Flip flopped. Lesson learned. I hope.
Now as expected, Realtors are knocking the doors down to show Buyers this property. It's new. It's priced below market. And it will sell quickly. I am extremely confident it will be under contract before Christmas.
So anyway, my phone rings. "Hello, Tutas Towne Realty, the incredibly good looking and smart Broker Bryant here, how can I help you?" "Yes, I just showed your listing and my Buyer loves it and would like to make an offer." Trying not to sound excited I say, "Well that's great. Why don't you fax it over with a pre-approval letter and I will contact the Seller right away and see if we can get a deal negotiated." He says, "Well, my Buyer wants to negotiate verbally first" OK, now I don't do verbal, but thought I would at least hear him out before I make him write it up, "My Seller won't negotiate verbally but go ahead and tell me what you got?" He says, "My buyer would like to offer $200,000 and he wants the Seller to pay $8,000 in closing costs."
For some reason my excitement left me, "Does your Buyer really think he is going to get that house for $192,000? Did you look at the price? The property is Range Priced from $219,000 to $239,000 and the recent comparable sells have been in the $239,000 to $245,000 range. Anyway, it's not my house or my decision to make but I will step out on a limb here and tell you that there ain't no way in hell the Sellers are going to even look at this offer. But listen if you want to write it up and send it over I will present it to the Sellers, after all it is their house. Just don't hold your breath on this one."
So, he then proceeded to give me a 10 minute speech on how this was a Buyer's market and how homes are not selling and how he feels this is a good deal and they may never get another offer and blah, blah, blah………..
Well, to make a long story longer, he did say he would write it up and send it over to me on Monday. So we'll see. Like this deal will ever happen. My question is, since I don't work with Buyers, wouldn't it make sense to at least pull up comps before submitting an offer? Do you think having a clue as to the true market value would be helpful? I mean, this house is a pretty good buy. It's already priced right. It is the lowest priced home of this size in Poinciana and it's never been lived in.
The point is: My listings are already priced properly. My pricing strategy takes into consideration current market conditions and there is not much room for negotiating. And, if you are working with a Buyer, and want to try and get a deal, at least take the time to put the offer in writing. Give me something that's positive to show my Sellers. Do your homework. Representing your Buyer's best interest does not mean wasting their time or yours, by low balling houses that are already priced right. Get a clue. Real Estate is serious business and needs to be treated as such. Don't be a potato head!
Sometimes I just don't get other Realtors. I think I will send this guy an invite to ActiveRain, where the cream of the crop hang out. I bet you guys wouldn't do this. Would you?