Not All Sellers Are Motivated

By
Real Estate Broker/Owner with Island Style Realty Inc. RB-19250

Earlier today I presented an offer for one of my buyers on a condo just outside of our planned community.

After pulling the comparable sales in that complex and a couple of neighboring properties of the same construction we determined the asking price was higher than what it should appraise for.  My clients really liked this one.  It had some upgrades and 2 parking stalls that were at the same level as the condo.  So after researching the numbers my clients settled on a price to offer the seller.

I submitted their offer to the listings agent.  Our offer was lower than the asking price by about $12,000, but higher than any of the recent closings.  Quite generous being that the prices in that complex have seen price decreases over the last six months.  Other than price, our offer was clean.  No concessions, no special provisions and a full pre-approval with docs with a primary local lender and well known loan officer.

I get a call back from the listing agent within a half hour of presenting the offer.  Their client wants to counter offer us back up to within $5000 or asking price.  The problem is we are already pushing the price and do not believe there is any hope for getting the appraisal.  I asked, if it doesn't appraise will your client lower the price?  The response was no, they want their number and nothing less.

With several similar units for sale, their property over priced and on the market more than 3 months; they are definitely playing a dangerous game.  The prices have softened in their complex and they did not seem to get the message.  If my buyers purchase another unit they will have missed an opportunity to sell this property at a strong price.

I will mention a side piece of information. This property was purchased several years ago for cash, has no mortgage and has gone up more than 250% since then.  It may not be relevant for the conversation of what the home is worth, but I do find it interesting when considering their demands.

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Randy L. Prothero, REALTOR®

Principal Broker, ABR, AHWD, CRS, e-PRO, GRI, MRP, SFR

Island Style Realty Inc.

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

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Comments 35 New Comment

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Ambassador
2,365,073
Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

Jeff, I had one like ths a while back.  I was presenting in person and the sellers got huffy.

"No problem," I said to the agent (in front of his clients).  "Here are the comps that I found, and if you could please share with me the comps you guys used when you priced this, I will bring them to my clients and see what we can do."  

I pulled out a detailed market analysis with a side-by-side comparison of their unit compared to the recent sales, giving them full dollar credit for their improvements. Then I left.

Of course, the listing agent had not done this and the sellers came down. 

December 20, 2007 09:44 AM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Kris - We put in an offer on another property for a $20,000 less and it got accepted within the hour.  We will be opening escrow today or tomorrow as soon as we receive back all the signed documents.

Neal - They just don't get it.  If they are jot careful they will be looking at selling for even less than we offered.

Lenn - Having me represent them in the purchase definitely protected them from over paying for the property.  If they tried it on their own or with an inexperience agent the bank most likely would have stopped it.

December 20, 2007 04:02 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Maggie - I agree completely

Gary - We did and got it yesterday.

Bryant - I doubt I would have taken the listing.

December 20, 2007 04:06 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Suzanne - I am not amazed, I have seen it several times.  I have turned down similar listings and will continue to do so.

Jeff - We moved on and the one we got will make it even harder for them to get there number.

Kathy - Maybe I see it differently then some.  I would rather spend the time finding a good client, than waste it on a property I can not sell.

December 20, 2007 04:10 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Gary - All we could do is move on.

Lisa- Now if they change their mind, it is too late, we just got accepted on another property.

Sally - The one my buyers just got should also appraise.

December 20, 2007 04:13 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Rick - All true.  I am sure the seller's agent is not too happy.

Patricia - That is a great way to handle it.  I had a buyer's agent on the other side try that one day.  The problem was he did not do a good set of comps.  I sold it that same day to a much higher offer.  My response back was that either mistaken or the folks bringing the other offers were.  LOL

December 20, 2007 04:17 PM
Rainer
23,412
Kai Lani
RE/MAX
RE/MAX Kai Lani
Randy,  Into all lives a litle rain falls.   Not all sellers are motivated.   Not all buyers are motivated.  And, today I had a tenant call me out to show a unit --  he wasn't motivated either.  Didn't need a place until March, but I couldn't get that out of him on the phone for love or money!   Come to think about it, not all agents are motivated either.  Jerry
December 21, 2007 04:27 AM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.
Jerry - Good point, besides the clients many agents don't appear to be motivated.  I guess that happens when many do this part time as a hobby and not full time as a career.
December 21, 2007 05:59 AM
Rainer
23,412
Kai Lani
RE/MAX
RE/MAX Kai Lani
Randy,  Guess we will be cleaning out a lot of realtors who don't make the cut during this buyers market.   The problem is that a lot of them will be young realtors with a lot of potential.    Come to think of it, our numbers in Hawaii are still growing.   Don't know what to make about that?   Jerry
December 21, 2007 12:47 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.
Jerry - We still have a pretty strong market.  Probably over half of those joining will never have a transaction.
December 21, 2007 01:10 PM
Rainer
17,001
Jerry Bangerter
RE/MAX Kai Lani
Actually Randy, this is a good market.   Our agents are really clicking!   That said, I am still looking for a weaning in the number of realtors on Oahu.   Jerry
December 21, 2007 07:48 PM
Rainer
6,585
Vincent Coccia
Construction Services Integration
That is probably one of the most difficult situations that you have when you sell real estate.  Greed becomes a very important factor...great post.
December 21, 2007 10:11 PM
Rainmaker
325,145
Esko Kiuru

Randy,

These sellers evidently were in no hurry to sell. Yet, there are sellers who do need to move on, but are adamant about the price and then proceed to blame everyone, but themselves, under the sun for not selling.

December 21, 2007 10:38 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Jerry - I am sure most of us who do this professionally feel there are too many agents out there.

Vincent - Greed is a factor for some.

Esko - I have met a few of them also.

December 22, 2007 03:34 PM
Rainmaker
605,639
Sharon Simms
St. Pete FL - CRS CIPS CLHMS RSPS
Coastal Properties Group International
Randy - perhaps the fact that the seller paid cash is contributing to his lack of understanding of the mortgage process. When representing a buyer I always add to the contract that this offer is contingent upon receiving an appraisal at or above the purchase price. Most buyers aren't willing to pay above that, even when they like the house. Listing agents need to be explaining both the market and the process to their sellers, and not just being an order-taker.
December 24, 2007 11:46 AM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Sharon - Either way they will most likely not be selling their property anytime soon. 

I go over the market value of the properties carefully with my listing clients.  I am amazed sometimes when I see properties priced real high.  This one wasn't in orbit, but it was still above what any reasonable appraisal will bring.

December 24, 2007 05:40 PM
Rainmaker
263,238
Jay Beckingham
Premier Nationwide Lending

i've referred to these properties in the past as the inactive active listing.

the listing agent might as well include in the property information, "cash buyers only"

December 27, 2007 05:39 AM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.
Jay - They might as well since the appraisal is not going to come in.
December 27, 2007 08:50 PM
Rainer
19,093
Joseph Grabowski
REALTOR - 4saleinbucks.com
Keller Williams Preferred Real Estate

Of course all sellers are not motivated!?@#$

Most sellers who say that or have it inserted in the property remarks just hope that will bring more people to look at the property, hoping someone will bite, and they won't have to negotiate much.

Someone who is motivated to sell better have the home priced right, ready to negotiate, and ready to make the move. 

December 28, 2007 06:46 PM
Rainmaker
619,961
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.
Joseph -  very true, what they say may not always match their intentions.
December 28, 2007 07:03 PM
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Rainmaker
619,961

Randy Prothero

Hawaii REALTOR, (808) 384-5645
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