Before You "Just Throw It Out There"......Do You Think About The Sellers?

By
Real Estate Agent with HOM Sotheby's Intl Realty, 949-510-2395 DRE# 01494165

 

 

There have been a lot of talk about the "Low Ball" offer lately. Pros and cons to writing them and working them. I am in the camp that ANY offer is an offer worth working, if at all possible.

But what about the "Vulture Buyers"? I call them this because they are the buyers who make it clear from the very beginning that they are looking for a "good deal." They will buy only in a situation where they can buy a home significantly under market value. They want to win!

They could be investors, or just buyers looking outside their real price range, hoping for a desperate seller they can use to get a REAL deal. The question I have for these buyers is this:

"Do you ever even think about the sellers"?

We all know what a tough market this is for sellers. Even in our local communities where the activity has picked up, the values are not rising in a commensurate manner. Sellers are really taking a hit on home values. For those who bought during the latest boom, this is NOT a paper loss...it's a real one.

The Vulture Buyers will often visit a home several times. Their agents will call/email to let us know they are "very" interested and to please give them time to submit an offer. Even though most agents know better than to alert a seller that an offer is coming (it's never an offer until it's in writing), sellers can hear the agent's name.....or actually meet the buyers.... and know that it's a second or third showing.

They get excited!!

These are people who clearly need to sell. They are not normally "cashing in" and going off to great adventures. They normally can not afford to take a bigger hit than they are already taking.

Then it comes....the offer that is 40-60% under market value. How do you think they feel? If this is not a short sale, they are disappointed, depressed, sad. And if this is a buyer who "would" come up...but just wanted to "throw it out there to see," these are also the sellers who are not going to respond well. They feel they are working with the Vulture Buyers. Those who are only out for themselves and not seriously working with market values.

This is not a game to sellers! This is important!

So if you are playing a game....I would just ask you to think about the real people, real situations, real families, real dreams on the other end of that Low Ball Offer.

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Ambassador
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Karen, not that I do not agree with what you have mentioned - but do you remember, just few years ago, the sellers played the same trick and got lot more than the home was worth? I do have sympathy for the sellers who price the home right - but what about those homes that are listed at least 10% above market value even in this market? (In fact, I do work with buyers more than sellers as of now - and have seen this happening so often, more so with some agents who virtually BUY the listings and eventually, take sellers for a ride..)

I think I can go on and on - as you have touched the debatble topic - and as I said earlier, I agree with you totally. But in defense of these buyers, the only thing I'd say...every dog had its day!

Apr 09, 2012 10:24 PM #27
Ambassador
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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Karen sadly enough your plea will fall on the deaf ears of vultures. Vultures don't care about anyone other than themselves. But hopefully there are some other buyers who have.not considered this and will take heed.
Apr 10, 2012 12:33 AM #28
Rainmaker
1,186,124
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
It is interesting how when they find the right home their offers become more realistic.
Apr 10, 2012 02:50 AM #29
Rainmaker
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Valerie Zinger
House Proud Ottawa-Ontario-Canada - Ottawa, ON
Home Organizer
Karen. Good point and very worthy of being a Feature. I suspect that Vulture Buyers only have feelings when they try to sell their own home. Sellers do get their hopes up after a second a third revisit.
Apr 10, 2012 03:02 AM #30
Rainmaker
579,695
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Karen,

The current buyers are so used to having the sellers lose $100,000, $200,000 or more that they don't care any more.

In the bank owned, the sellers loss is the buyers gain. They expect every seller to lose, and to lose big...

Phil

Apr 10, 2012 04:21 AM #31
Rainer
276,890
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

I just don't think it is in their DNA to think about the sellers.  But the issue is that there are other buyers out there who ARE willing to pay near market value.  The vultures in our area are not people who purchase real estate...they just write offers.  And you usually can tell that they are about to submit a lowball offer when their agent calls and wants to submit a verbal offer.  Even they know that it is a fools errand.

Apr 10, 2012 04:48 AM #32
Rainmaker
298,069
Charlie Dresen
Steamboat Sotheby's International Realty - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Love the term "Vulture Buyers" and the point you make about considering the seller, the 'other' side of the table, is a very good one. I suspect true "vultures" really don't care about the seller's side, but borderline vultures will. It is very disheartening when a seller gets his/her hopes up and then a lowball offer comes in. That's where our "counseling" comes in and when it becomes numbers counseling as well as emotional counseling at times. Thanks for the great post and congrats on your feature!

Apr 10, 2012 04:59 AM #33
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Amanda and Jared Christiansen, YOUR Fort Wayne Realtors
Century 21 Bradley (260)704-0843 - Fort Wayne, IN
Century 21 Bradley.

Once again, Karen is spot on.  Great blog and congrats on another feature.                                                        

Apr 10, 2012 05:25 AM #34
Rainmaker
1,180,398
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Karen the problem is some just do not care, they are looking out for themselves. I must say in some cases the buyer does care and was just plain given bad advice by their agent to offer such a low price. I have been writing feverishly about situtaions where on my new listings i receive quite a few offers in only days after listing and hearing buyers tell me they lost their dream home. When i ask them why they made such a bad or should i say low offer, they tell me their agent told them to. All I can say is sorry Mrs buyer, the house is now under contract to a buyer who made a realistic offer. Inventory is down, sales are up so houses priced at or just under market value are selling quickly.

Apr 10, 2012 05:44 AM #35
Rainmaker
1,033,732
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

I avoid these vulture buyers. They are the pennies on the dollar crowd and I prefer the ones looking for maybe 75 cents on the buck!

Apr 10, 2012 06:35 AM #36
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

LaNita: It's so hard on sellers who are already stressed

Kim: That's a good idea, so that they can really educate the buyers as to the true value? Bet a lot don't bother

Jo: Me too...I know

Eve: And you're right...but I just wonder if they ever consider what the other side goes through?

Steven: I feel that way also...of course the funny thing is that these buyers often don't get any response at all, or the sellers compromise significantly less than they might have otherwise....just because they are annoyed

Nic: Thanks...it is people, especially in this business and I really just wanted to bring up the other side

Marti: We are in that same market....but it tends to be only the brand new listings that move like crazy, then they sit a bit

Erica: Isn't that annoying? And those sellers think something is bound to come of it all, only to find a dumb offer.

Anja: I hope so also...I'd like to see some form of normalcy restored

Ed: I like the idea of the comps also to support those low offers.  I submit low offers (never something as low as 60%) but I also tell them that they have no chance.

Michael: sometimes

Melissa: We all have..they are just bargin hunters, looking for the Picasso at the garage sale they don't tell the sellers about

Margie: That's true also..and I agree. We all need to watch for ourselves, but sometimes I think they should just move on and not hurt others

Steve: We recognize these when we hear that they ONLY want to see distressed properties. Sometimes equity homes are a far better deal, but they want to get the "perceived" deal.

Apr 10, 2012 07:41 AM #37
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

Elizabeth: I do....better to take a day off than to waste it with a Vulture who is really not going to buy anything any way.

Joan: Good for you....you lost nothing in that :)

Gretchen: It's not necessarily a bad thing....I've done it. But when they do the long production and they really have no intention of getting close to the price, then I wonder if they give any consideration to those on the other side.

Ruthmarie: I know....I hope they get a good offer too. Actually, I'm certain they will. Our market is heating up and it's a nice home at a great price. So we didn't even counter, I used my "rejected" stamp on it. :)

Anthony: That's true, but when they have the facts and it's a silly low offer, it's not a buyer's market here anymore.

Joan: Realistic is the point. If they are only going to buy a $500k home for $400k, and nothing else..then they are not going to spend my time to find it.

Praful: I don't know about the sellers getting a lot more home than it was worth? And at the time, those were buyers. If they did get a great deal and are "cashing in" then they most likely are flippers and know what they are doing. Here there aren't a bunch of flippers yet. 10% above market...would still not justify the 60% of list price, though? And I also think that if a seller has a home priced ridiculously high, then you're right, they deserve a lowball. But that's a different situation than the one I wanted to address.

Charita: I know....but maybe some sellers will realize that we understand their side too.

Cheryl: isn't that interesting? yes.....the games stop when they want something

Valerie: Sellers assume that these are serious buyers, but then they find a junk offer? And espeically after they accomodate all the showings and visits, for a game.

Phil: That's exactly right....they have bought into the buyer's market and expect to win, and win big

Kathryn: I think you're right....oh and those verbal offers. "Do you think there is any reason to write up an offer for $$?" Nope!!! Although a couple weeks ago I had them write it up for fun...I'll post on that in a bit. :)

Charlie: And maybe we just need to remember ourselves, and do more guidance? I'm not sure

Jared: Ah...thanks!! :)

Scott: It's sad...and you're right, some agents tell buyers what they want to hear, not what they NEED to hear. Congrats on your listing

Gary: me too. :)

 

 

Apr 10, 2012 08:03 AM #38
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

Here is the post about the "verbal" offer I had them write up.

Tee Hee.....Sure, Send Me That Offer :)

Apr 10, 2012 08:18 AM #39
Rainmaker
895,372
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Karen, the vulture buyers always seem to want more and more even after their low-ball offer may be accepted. I don't believe these people care about the sellers. They're just looking out after themselves to get a good steal.

Apr 10, 2012 10:04 AM #40
Rainmaker
236,315
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial 928-201-4242 - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I always ask buyers:

"If YOU were the seller, would YOU accept YOUR offer?"

I find 'vultures' of any kind distasteful. Let everyone have their dignity.

Nice post, Karen. :D

Apr 10, 2012 11:20 AM #41
Rainmaker
1,021,930
Adrian Willanger
206 909-7536 TheHomeFunnel.com - Seattle, WA
Profit from my two decades of experience

Karen, I always tell my buyers when they want to present a low ball offer, that if the offer is offensive I won't write it, I haven't anyone walk away from a deal because I've said this to them. Good article!

Apr 10, 2012 11:51 AM #42
Rainmaker
1,333,222
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

#44 is a tad off topic, no?!?

Personally, I don't think buyers care to know the details from the sellers' perspective unless, and until, they are the sellers -- then all of a sudden it matters.

Apr 10, 2012 02:18 PM #43
Ambassador
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

Michael: I agree...and if the offer is just silly, there is no point.

Candice: I like that approach, but you are clearly a solid agent trying to help your buyers.

Adrian: I like that also....

Carla: they seemed to have disappeared also....Spammy? But then I am an "international active rainer" am I not? (now that it's gone, inside joke)

Apr 10, 2012 04:08 PM #44
Rainmaker
315,692
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Agents representing buyers need to realize that they are hurting their own credibility when they submit offers that do not make sense.

Apr 11, 2012 05:22 AM #45
Rainer
58,064
Millie Lumpkin
Keller Williams Preferred Realty - Orland Park, IL

There are some buyers that really want the home and are just hoping they will luck out. These are different than the obvious investors that attended a workshop and are just blanketing the field to see if anything sticks.  Those I have less patience with.

Apr 12, 2012 12:43 PM #46
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Karen Fiddler, Broker/Realtor

Laguna Beach & Lake Arrowhead, CA (949)510-2395
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