Stacey-Ann's Blog

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Sometimes "Low Ball" Offers are actually perfectly reasonable

Recently there have been several blogs discussing low-ball offers and the agents that submit them.

As an agent who works primarily with buyers I find these discussions interesting because the comments and posts tend to suggest that the buyers are unrealistic and their agents unprofessional.  Very few people even investigate the possibility that it is the sellers and their agents that are unrealistic.

I closed on a home that was listed for $200,000 over the price the buyers offered.  When the buyers made their offer it was not because they were trying to steal a home or because I, as the buyer's agent didn't know what I was doing.  Instead, the offer price was made because after reviewing the comps that was what the buyers thought was a reasonable offer.  

At first glance the listing agent was not impressed with the offer and pointed out repeatedly that the offer was way too low.  

Eventually with no other offers forth coming the sellers decided to accept the offer.  

The home had been on the market for 9 months when we came along.  At the time we saw it the house was on it's second agent and 4th or 5th price reduction.  The final purchase price was a whopping $700,000 under the price the house first went on the market for.

In this scenario I firmly believe that I did my job, I helped my buyer get the home they wanted at a price they were comfortable paying.  Just because it was listed for an unrealistic price doesn't mean that we have to pay the unrealistic price.

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)

 

FINALLY!  A DOCTOR WHO MAKES HOUSE-CALLS!

 

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Comment balloon 11 commentsDr. Stacey-Ann Baugh • April 13 2012 05:32PM

Comments

Hope this gets featured!  I agree completely.  Just because an offer is asked does not mean it is market value.  A buyer's agent is critical in helping determine a fair price for a buyer.

Posted by Coral Gundlach, Real Lives. Not Just Real Estate. (Compass) over 6 years ago

I dont ever get to show homes that far above market price.  

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) over 6 years ago

I with you on this.  It often isn't a low ball offer... it's an unrealistic asking price.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 6 years ago

Hi Stacey,  Just to clarify:  If the offer is based on reliable comps it is not a lowball offer regardless of the difference between it and the ask price.  Hope your Easter is the best ever !

Posted by Bill Gillhespy, Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos (16 Sunview Blvd) over 6 years ago

Wow, with Dr. in front of your name give the Real Estate profession what it needs for. It shows not only High School Graduates do Real Estate Profession. Now, how most of us in the business are professionals and most importantly, we love the Business. Sorry, I am out of the topic but you are the first person I encountered with the title like that. Power to you!!

You did the right thing to your  client but what it saddened me, like you said, "At first glance the listing agent was not impressed". Because, mostly I hear the seller wants to sell what they bought the house in the peak time of 2005 or 2006. 

It is definite, your buyer will bring you more referrals; but others don't expect Agent(s) with educational credential like yours.

 

Posted by Aklile Mariam, e-PRO Realtor (Lic. DC, MD & VA) (Long and Foster Real Estate - CAPITOL HILL) over 6 years ago

Hi, Stacey-Ann

     How refreshing to see a Blog on ActiveRain that justifies the "Low-Ball Offer".    When a property is over-priced, it is perfectly reasonable and justifiable to bring in the Low Offer.

 

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Fred Griffin Real Estate) over 6 years ago

Just was commenting on a similar post! I always preach to look at selling as a business transaction and take the personal feelings out!

Posted by Michael Maynard, "Welcome Home!" (New Neighbors Realty) over 6 years ago

You are right on with this post!  the other factor is that one never knows what the seller will take.  Sometimes a low offer just pisses off the seller, sometimes the agent is being a gate keeper!  But if a buyer's agent can justify the offer with comps, then it is a reasonable offer!  Your buyers are lucky to have you as an agent!

Posted by Carol Lee, Realtor - Agoura, Oak Park, Westlake CA Homes (Dilbeck Real Estate) over 6 years ago

I couldnt agree more with this post.  I think every market, including mine, South Jersey, this applies to! Thanks so much

Posted by Jessica Holtzman, Real Estate Agent in Southern New Jersey, CDPE (Keller Williams Realty, Inc.) over 6 years ago

Great post Stacey. Low ball does not always mean that there is not merit. I have a client who will be making a seller very unhappy next week with something similar. The house is very over priced.

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) over 6 years ago

Btw. This deserves a feature star. You also missed a great lunch.

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) over 6 years ago

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