Okay…..I am a little mad. I have a great listing that we have priced very realistically. We’ve had one “Buyer” that looked at the place 4 times before making an offer. Why am I mad? Because they offered around 85% of the already fair asking price.
See, to me, these peeps weren’t real buyers. They were dreamers. They aren’t living in reality. For our area, the average list to sale percentage is 97%. I’ve sold 43 houses worth about ten million bucks in less than two years. I spend a lot of time everyday studying comps, sale prices, stats, etc. About the only time I see a house actually sell for that far off from its list price, it is usually because the asking price was too high to begin with. The fact that they didn’t even come up any further in their offer shows me that they aren’t really going to buy a house. A real buyer will pay a fair price for a house.
When I was a younger agent, I occasionally worked with people like this. You’d meet them at an open house or they’d walk in the office. What always fascinated me was that they never took my advice. You could show them a dozen comps for identical houses that all sold last week and were all on the same block….heck, let’s also say they even sold for the same price. Plenty of data to determine a fair market value. They would always want to offer no more than about 80% of the asking price, often saying that it just wasn’t worth more than that “To them.” It was like they have heard the true saying that something is only worth what somebody will pay for it…..but they failed to realize that they were not the only somebody out there. I don’t know what ever happened to those people because I let them find another realtor who was willing to live in their dream world. However, if I were a betting man, I would wager that they are still out there somewhere writing low offers and are scratching their heads wondering why they can’t seem to ever buy a house. Or maybe they are those people who paid a fair price for a house that was listed for way too much. I guess if you base your offer on a percentage of the list price rather than recent sales, you can feel like you got a bargain.
So, if you are a seller and this happens to you, keep your cool. Put on that fake smile and dance with them until the song stops. Sometimes these low ball offer people are just testing you, but most of the time they waste your time and make you mad. If you ARE one of these people, listen to your agent. Look at the comps…..and like I’ve often heard Gordon Ramsey say, “WAAAAAKE UUUUUP!”