Stacey-Ann's Blog

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Don't let your sellers long for the offer that got away

When I first got into real estate I remember being told that your first offer is usually your best offer.  With that in mind I always try to negotiate with every offer that comes along - no matter how ridiculous it might seem.  

Last year I had three instances where good buyers had their offers fall through because sellers or their agents refused to negotiate with us.  I was curious to see how those homes ended up.

1.  Single Family Home in Bowie, MD

  • Listed for $249,900.  It was in the MLS as a 3 bedroom but the owner had converted two of the bedrooms into one big bedroom so it was actually a 2 bedroom home.
  • In April 2010 my buyers came in and offered $240,000, asked for $10,000 in closing and wanted to returned to a 3 bedroom home.
  • They countered at full price and said we could have EITHER $5000 in closing OR restored to a 3 bedroom.
  • Since the home was being advertised as a 3 bedroom my buyers didn't even think this should have been part of the negotiation.
  • We moved on put an offer on a house with the exact same floor plan where they paid $235,000 with $10,000 in closing and closed in June, 2010.
  • This original home finally closed in December 2010 for $219,000.
2. Condo in Laurel, MD

  • Originally listed for $145,000.
  • My buyer offered them $147,000 and asked for $5000 in closing costs and was rejected in a multiple offer situation in October 2009.
  • The contract fell through and the condo came back on the market and my buyer offered $117,000 with closing costs.  His offer was accepted in April 2010. 
  • During the home inspection the listing agent refused to turn on the water for my buyer saying that the home was As-Is and my buyer could take it or leave it.  My buyer left it because he wasn't able to inspect the plumbing system, the hot water heater, etc.
  • The condo just went under contract this month and was listed for $80,910.

3. Single Family Home in Fort Washington, MD

  • Listed for $165,000.  Apparent mold in the basement.
  • My buyer had a 203K loan and offered $159,000 and asked for 6% closing in July 2010.
  • This agent was incredibly unpleasant to deal with.  He indicated that the seller (bank) would not budge from the asking price and would only pay 3% in closing costs.  My buyer needed the 6% so it was a deal breaker.
  • This home is currently under contract.  The listing price hasn't changed but now they are offering 6% closing costs and a buyer agent bonus.
In each of these situations the sellers lost tremendous amounts of money because of their unwillingness to negotiate.  I can't help but wonder how many times in the past few months did they long for the offer they let get away.


 

If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery,  Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.

 

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Dr. Stacey-Ann Baugh

Century 21 New Millennium

www.LiveinPGCounty.com

staceyannbaugh@gmail.com

240-481-3565 (C)

202-546-0055 (O)

 

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5 commentsDr. Stacey-Ann Baugh • January 25 2011 10:36PM

Comments

This is a great example of why sellers should seriously consider a first offer so long as it is "reasonable".

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 3 years ago

I agree - it is frustrating at times when a contract can not be reached, and as a result the seller ends up taking less down the road... or no offer at all. Good post with examples.

Posted by Carla Harbert, RE/MAX Omega: Lorain-Medina County Area (www.LorainCountyHomeSales.com) about 3 years ago

 

Featured @Club Chaos

 

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) about 3 years ago

Nothing like a true-life story to help get through someone's hard head.  I may have to re-blog this later this week, since the communities are familiar to Crofton residents.

Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc., Crofton, MD 21114) about 3 years ago

Stacey,  What a great way to be able to show a seller that a thorough consideration of a strong offer is in their best interest.  I bet there are a lot of homes with this same scenario.  I just wonder if buyer's are waiting for the prices to drop....and if those agents are still in the business!

Bridget "Maryland Mortgage Mama" McGee

Posted by Bridget McGee, Maryland Mortgage Mama NMLS#196068 (Corridor Mortgage Group 410-960-2061) about 3 years ago

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