Does My Seller Care what Your Buyer Can Afford?

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Real Estate Agent with Regent Property Group 0480809

 As a listing agent, when I have a listing priced at $182,000, why do I care that the buyer only wants to pay $165,000 for a house?  I had a listing that closed a couple of weeks ago, but negotiations were a little difficult.  We were listed at a very competitive $182k for a 2700 sqft home built in 2002.  I know buyers in many parts of the country are drooling over that price!

I get a call from a buyers' agent asking if my seller would take $165k.  I tell her she can write up an offer and I'll present it, but that it seems pretty low for this house and not sure how the seller would react to it.  Of course I knew how the seller would react because I prepare my sellers at our initial listing appointment.  I run through several scenarios with my sellers so they know what to expect, the good and the bad.

She continues to tell me that her buyers are already approved to $169k, but only feel comfortable staying around $165k, oh, and they'll need closing costs.  It's like she's trying really hard for me to discuss confidential information about my seller to see if he'll take less, but I never fall for it.  I again tell her to send me an offer.  So, I let my seller know about the conversation.  By the way, the house was only on the market about 6 weeks.

 I end up getting an offer the next day for $169k with no closing costs.  Great, it's better than she said it would be.  We countered it back since it was still fairly low.  The buyers' agent is very upset that we countered and reiterated that her buyers' comfort level was only $165k and by submitting the offer at $169k with no closing costs, that they were serious about the house.

"I'm sorry, but what part of your buyers wanting to pay $165k has to do with my seller listed at $182k?  Why are you showing your buyers houses that they can't afford?" 

"Well, it's a buyers' market and my buyers thought your seller would be excited to receive an offer."
It's been 6 weeks, not 6 months... "Umm, what market do you typically work in that it's a "Buyers'" market?"

For people across the country who are in buyers' markets, we're not in Dallas.  Yes, we have a lot of inventory, but in most areas, houses are selling about 97-98% of asking price, and some individual communities are selling at a full 100%.

I looked up the agent in the MLS.  She has sold only a handful of houses in the past couple of years.  Great, another agent who "dabbles" in real estate as a hobby.  Just so you know, my seller sold for a very nice price at 98.11% of asking price, and the buyers' comfort level increased when another offer was on its way.

Remember, I work all of North Dallas County and Collin County including Richardson, Plano, Allen, Frisco, Carrollton, Garland, Rowlett, McKinney, etc... my car will take us anywhere you need to go!! 

 ARE YOU PACKED YET?!

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Location:
Texas Dallas County Richardson
Groups:
Realtors®
Lone Star Real Estate Professionals
RE/MAX Active Rain Bloggers
Collin County, TX Real Estate Professionals
All Thing's Texas
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buyers market
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Rainer
100,660
Cheri Smith
Realtor Prudential Gary Greene
Prudential Gary Greene, Cypress TX

Donna, I feel like I am spending more money than I make at this point. Why? Because I seem to get the people that think they are going to a flea market when purchasing real estate.

They think sellers are desperate. So they think sellers will haggle with them like its a lamp they are buying. Listed at $200,000, we will offer $150,000 and see if they meet us somwhere in the middle. lol.Who cares if it is priced right.

 You can show them comps, you can show them appraisals and they still don't get it.

I don't know if your agent was the problem or the buyer was the problem. Maybe both. Sounds like both.

I have no patience for some buyers these days. I have even less for the agents I am meeting.

 

 

 

April 23, 2008 09:44 AM
Rainer
75,569
Frank Schulte-Ladbeck
Frank Schulte-Ladbeck Professional Real Estate Inspections
Donna, I was watching the data for Houston, and even the Realtor Association was hinting that we are heading towards a buyer's market. My neighbor listed her house for what she considered a fair price with her Realtor. She came to talk to me about it, and I repeated the data that I had heard. I told her that I just did not know what circumstances she would find. Within three weeks she obtained an offer slightly below her asking price. I decided to look closely at my subdivision. Homes listed with a Realtor sold within a month, while FSBO are still on the market after six months. We are actually doing better than the city numbers in this one spot. It goes to show you that even neighborhoods could be different than other areas in town.
April 23, 2008 10:54 AM
Rainmaker
30,902
Tom Ikonomou
Kamloops B.C Real Estate (250-318-0479)
Best-West Realty Ltd.

Don't you hate it when you have to S.P.E.L.L  I.T  O.U.T  ?

April 23, 2008 12:03 PM
Anonymous #13
Anonymous
Anonymous
Donna, you already asked the question, but it deserves a repeat..."Why is the agent showing homes out of the buyer's price range?"  For my buyers I do look at listings that have been on the market for a looooong time to see if it's feasible to bring in a lower offer, but I am cautious about it....and I do my research with comps.  I know I have to represent my client but it's also my reputation on the line so I make things very clear with my clients about what to expect if they want to bring a low-ball offer ~ which is usually a seller that won't even consider a counter. 
April 23, 2008 12:17 PM
Rainmaker
1,358,968
Donna Harris
Realtor, CDPE & ASP - Hill Country Lakeway Austin
Regent Property Group

It looks like I haven't been responding to people, but at one point, this blog reproduced itself and I had been putting all the responses there. Now, this version has popped up again, so I'll start responding on this one instead of the other one.

Joddie, Exactly!  And I ask that question all the time.

Tom, I missed it.  Can you R E P E A T that please?!

Frank, I believe FSBOs are always on the market longer because the consumer has started to realize that going directly to a seller without representation is going to be a headache and they are probably watching a lot of Judge Judy and wanting to stay out of court!

Cheri, I get those buyers too.  It gets easier when they lose a couple of houses, and then they get really serious when they really don't want to lose the house.

Greg, I don't like verbal offers either, but she was only doing what the "National" news tells a buyer to have their agent do which is try to gather as much of the confidential information as possible.  I can't fault her for trying, but my lips are tight when it comes to sellers' motivations for selling.

April 24, 2008 11:48 AM
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Rainmaker
1,358,968

Donna Harris

Realtor, CDPE & ASP - Hill Country Lakeway Austin
Are you Packed for Austin? I can help!!
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Additional Information

This blog is to help educate Buyers, Sellers and even other Realtors across the country.  Each market is different and the way Real Estate is done is different.  Austin Real Estate is completely different than Dallas, California and Florida and everywhere else in between.  Some times there will be other things besides real estate as I like to rant and rave as much as the next!!  Come back often!

Donna Harris, REALTOR® with RE/MAX
Donna Harris, REALTOR® with RE/MAX
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