Mr. Home Buyer, Your Champagne Tastes Don't Entitle You to Price Deductions!

By
Real Estate Agent with RE/MAX Elite 513.265.3004 www.LizTour.com SAL.2002007747
http://actvra.in/bhd

champagneMr. Home Buyer, Your Champagne Tastes Don't Entitle You to Price Deductions!

Dear Mr. Home Buyer,
Your agent tells us you've been looking for a home for quite awhile.  Nothing all that unusual about that, lots of buyers and their agents spend quite a bit of time looking for that perfect home. 

But from our limited knowledge of you based on the communications from your agent to us concerning your offer, we think that you may have a problem with YOUR expectations.

In our market, you typically shouldn't expect granite counter tops, custom tile, etc. until you're approaching the $300k price point, and even then, it's more likely to be a less expensive form of solid surface counter tops.

So when you're looking at homes priced in the low to mid $200ks, it's not reasonable of you to EXPECT those higher end features.  You may want them, more power to you.  Have at it AFTER you've bought your new home from our sellers. 

But what you CAN'T do as the buyer?  Deduct the cost of your desired upgrades off the list price of an already appropriately priced home.  The home is already priced competitively, already has upgrades to knock your socks off, and you think by saying "here's my list of the things I'll want to change after moving in" that you get a price break?  On a move in ready home?  REALLY??  Maybe your agent hasn't told you this yet, or maybe you just need to hear it one more time to "get it".  If a home has appropriate and good condition features, and is priced appropriately for the neighborhood, you don't get to deduct for your wish list.

So, we don't know you, haven't met you, but based on that offer you submitted yesterday that flamed out within three hours, we think we've got a pretty good idea of why you're STILL looking for a home. 

And if you change your mind and decide to offer a more reasonable amount for our listing?  Come on back!  Our sellers would STILL be happy to sell you this home.  Our sellers agreed with EVERYTHING else you wanted, it's just price!  And we have absolutely NO fear about the home not appraising.

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

UPDATED 5/24/2011 2 p.m.  For those misunderstanding this post, this is NOT a letter actually sent to a buyer client on the other side of a deal.  The facts are real.  Their misconceptions are real.  We did nothing on our side to kill the deal, nor do we ever.  This was never about emotion but strictly about price.  Seller countered twice, buyers didn't come up.  Deal closed for now, although the invite to continue was left open.  Do NOT interpret this as an attack on low ball offers or that we hinder deals or get emotionally involved as the agents.  We do what is in our clients best interests.  All offers are presented and countered.  This IS strictly an educational piece for the buyers (and their agents) who need it.  There was and IS no intent to insult anyone.  If you've been reading our blog regularly, you'd know that isn't our style.

Posted by

REALTORS(S) Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of RE/MAX Elite
Elizabeth & William Spear
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
Liz direct:  513-265-3004
Bill direct: 513-520-5305     
Fax: 866-302-8418

MailTo:  LizSpear@Go-Concepts.com

Our Website:  www.LizTour.com

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Charita Cadenhead 05/23/2011 08:43 AM
  2. Kate Smith 05/24/2011 10:06 AM
  3. Jon Quist 05/25/2011 04:26 PM
Topic:
Home Buying
Location:
Ohio Warren County
Groups:
RE/MAX Active Rain Bloggers
Realtors®
Advice for Sellers
Advice for Buyers
Active Rain Newbies
Tags:
buying a home
contract negotiations

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Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Christine, I'm not sure I've ever seen a perfect, move-in ready, EXACTLY the way the buyers want it at a price they want home.  It's all about reasonable compromises.

May 25, 2011 12:42 PM #102
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Bill & Cyndi Daves
Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond! - Hiawassee, GA
TeamDAVES - Your REALTORS In the GA/NC Mountains!

I think it's one of the reasons we like handling foreclosures.  Everyone knows going in the door that there aren't many concessions to be made for your "wants"! 

May 25, 2011 05:32 PM #103
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Bill & Cyndi, I can see that advantage.  Not a lot of give and take. Here's the house, give us an offer the bank will take! :)

May 25, 2011 07:06 PM #104
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Bill & Cyndi Daves
Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond! - Hiawassee, GA
TeamDAVES - Your REALTORS In the GA/NC Mountains!

You got it!!   While the buyers always try to get a deal, the bank knows what their bottom line is and won't cross it!  Once you know that, it makes the game pretty simple.

May 26, 2011 02:49 PM #105
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Exactly!  Not too much bilateral negotiating going to be happening!  Get the price right, or goodbye :)

May 26, 2011 02:58 PM #106
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

Liz & Bill, I included this post in Last Week's Favorites

May 29, 2011 09:54 AM #107
Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Pat, Thanks for the inclusion! :)

May 29, 2011 10:00 AM #108
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Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Bliz

THis was a terrific post, beautifully written, and it drives the point home. No confusion on my part about what was meant nor how it was intended. There are lots of buyers out there who need to read this.

We see the same on the seller side, too, don't we? THose who think all they put in their "special" home is worth far more than the market says. Ah, human behavior.

Good luck.

May 29, 2011 10:02 AM #109
Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Jeff, The good news is we're showing the home ourselves today, and from what the buyer prospect has seen online, she LOVES the home, the neighborhood, etc.  Maybe this will be THE ONE!

May 29, 2011 10:21 AM #110
Rainmaker
262,232
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

One would hope, that if the letter had been sent, the buyer would say "that's funny, that's what our agent said...all those Realtors must be working together, this is rigged!"

May 29, 2011 11:36 PM #111
Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Claude, You could only hope!  We showed it ourselves yesterday, went pretty well.  Just waiting for the buyer prospect to look at some more listings and hopefully decides ours is the one.

May 30, 2011 06:45 AM #112
Rainmaker
843,163
Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

Bliz:  I'd like to add something that happened last fall.  Buyers agent wrote a letter to the seller with just the specific 'expectations' that the buyer hoped to install.  The price was based on (as you say) what they felt THEY HAD TO DO to the home.  The features listed were above that price point by a ways (150K).  The letter was a 'kind explanation' to the seller to ease feelings.  Seller dissed the whole thing & thought it childish.  Buyers agents skip this tactic.

May 30, 2011 01:43 PM #113
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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate
You two make me smile with your update/explanation! I'm with Jeff... No explanation needed on my end either! Glad Pat included this pearl in her weekly updates. Well done! Pamela
May 30, 2011 02:24 PM #114
Rainmaker
73,267
Gina NUGENT
Seiss Real Estate - Miami Beach, FL
Gina Nugent

I think it is funny that you had to update on your post to make people understand your intent. It was very clear to me that it was educational .....and very well written, if I may add...

May 30, 2011 02:38 PM #115
Rainmaker
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DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Bill and Liz, I got your point in the first place and thought it was a good one!  Thanks for sharing!

May 31, 2011 12:33 AM #116
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Lyn, I can't see reaching above the neighborhood for extras and thinking the sellers are going to be happy.  In essence, the buyers have just insulted the sellers as saying their home isn't "good enough".  Every price point has features you expect to see, and not.  For our area, the home had features no reasonable person should have expected, and to then say they wanted more?  Uh...right!

Pamela & Gina, First time I've ever felt the need to add an update to a post to clarify intent, but between comments on Lenn's post and here, it was clear that not everyone was comprehending what I thought was a clear post....so JUST to be safe!

DeeDee, The right buyer is out there, this just wasn't the one!

May 31, 2011 06:12 AM #117
Rainmaker
150,817
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

I was NOT confused by your intent!  But you did a very good job of explaining your reason for this blog!  You've "said" what many of us had wished we could say!

May 31, 2011 07:53 AM #118
Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Kathy, If they were reasonable, they could have been moving into this home in 10 days :)

May 31, 2011 08:31 AM #119
Rainmaker
981,145
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

I agree with Jane's response #9, that the agent isn't taking responsibility for the buyer when they let them do this. It's a guaranteed failed negotiation. A colossal waste of time for the buyer's agent and the buyers, and emotionally draining on everyone.

Sharon

Jun 02, 2011 07:08 PM #120
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Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Sharon, It's a low probablility of success tactic.  As the buyer's agent you're REALLY counting on the other side to stay calm cool & collected.  Not a standard thing to hope for in today's high stress markets :)  Everyone did stay c3 in this one, but still no deal.  Money talks, and low offers walk.

Jun 02, 2011 07:26 PM #121
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