"Rich, how much will the seller take for the house? Well, taking the rest of the contract into consideration, the seller will more than likely accept the listing price." Frankly, what the heck else did you expect me to say?
Even though some agents ask that question, thats really not what they're after. There is usually a pause after I tell them the seller will accept the listing price. What they frequently say next is, "my client wants to make an offer, but I don't want to waste your time." I don't know about you, but for me, its never a waste of my time to review a written offer with my sellers. Thats my job.
At least be honest. It really is about wasting your time, having to write an embarrasingly low offer, isn't it? If you're working with a client who thinks they can grab some listing by offering 50 cents on a dollar, you probably are wasting your time. As a buyer's agent, you really need to ask yourself whether your client is a serious buyer.
Experienced agents know whether their buyer clients are serious, or just tire kickers. You would be surprised how many people fall asleep in front of the tv and wake up in the middle of the night to an infomercial. "Real estate riches for 50 cents on the dollar, or less." This is where many of them hook up with an unsuspecting agent to do their dirty, time wasting work.
If your buyer client is wasting your time, I'm sorry. If you have an offer, even a low one, send it over. I never consider it a waste of time to do my job.
If you're SEARCHING for a home anywhere in Maryland, click here to view ALL ACTIVE LISTINGS.
Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com
Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist
©2009 - RichSellsHomes, All Rights Reserved
©iStock Photo - Licensed for Use
Rich Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
SKYPE ME: RichSellsHomes
It's never a waste of time to do your job...great lingo!
The obvious answer to this question, and the one I use most often, is "How much will you give for the house?"
Rich, I like your original answer. I let people know that I will present all offers. It's not my decision what the seller should accept.
Richard, Great post!!! You are right! When you are doing your job, you are not wasting time...
Rich, A lot of things have changed in the real estate business over my 26 years, but this question has always been the same. If I'm the buyers agent I would butt in and say if this is the one, We will find the comps...to guide your offer (period).
I'm always amazed at that so I say "hold on let me get my seller on the phone" act like I'm having a conversation and then I say THE SELLER WANTS TO KNOW WHT YOUR OFFER IN WRITING IS. But I try to be nice but mostly I'm a smart ....
I get that question all the time.
I'm like you, I always encourage agents; "no matter how much it is, write it up and I'll present it".
This is so funny. When I am asked what will they take I simply say they will take .... the asking price. Then I say submit your offer and I will be happy to present it and see if we can work out a deal. Good post you made me chuckle as we both respond pretty much the same way
I blame the media...the radio ads here say all you need to do is call an 800 #, get a magic foreclosure list and you can get a beautiful home for $400 a month...less that I pay for rent!! It's that easy!!!
Richard....my response is the same as Charlie's.....
my new construction is easy....MY BUILDERS WON'T TAKE ANYTHING OFF THE PRICE....NOTHING....if a buyer wants to live there, they pay the money!!! I have two builders who have raised their prices....and getting sales.
My response always is something like this: "I caution my sellers from Day #1 to only negotiate in writing. Put it in writing." and "I would never presume to speak for my client."
Richard, I also get this question all of the time. Talk is cheap, put it in writing. Good Post!
Richard:
I do a CMA for them and give them evidence of what properties have sold for against what is out there - also against how much they want the property. If they really want the home, it's not reasonable to submit an offer that is too low. Sometimes they have to lose a property to really see this.
Haha... who hasn't heard that question! You're right on with your analysis, Rich. On a side note, this is a good week for featured posts in our office, with Martha on the board too. Congrats to you both.
Great post. I have to agree you should always put offers and counters in writing to be safe. Buyers need to be realistic. If they really want the house they need to look at accurate comps and make a reasonable offer.
;)
Fantastic insight! Thanks for posting this.
Great answer. That definitely representing your sellers in their best interest.
CHERYL: Its what we're paid to do, isn't it?
STEVE: Good answer but I find that sometimes the agent doesn't know what their buyer actually wants to offer.
JEN: Presenting all offers is mandatory. I may not like it but everything in writing is presented.
MIKE: I waste a lot of time on other things but not when I'm doing my job.
STEVE: Over the years I find that not many things change in real estate.
CHARLES: I like that approach. Just not sure I can pull it off without laughing my butt off.
Great mindset. It is crucial to keep the thought process flowing the right way, or we are wasting everyone's time, as well as the seller's money!
I know that they will take list price other than that put it in writing and I will present it to the sellers.
You've gotta love the guy that wants to "low ball" everything--even when multiple offers are coming in.
That question is asked all the time. My statement is usually something like this: "You are welcome to offer what ever you seriously believe you will pay for the House and then it is a matter of negotiation between you and the seller." I believe some buyers will be testing to see what you say, but know you aren't likely to know that answer.
Rich...
This is exactly the way I like to treat my sellers. I'm not going to give away anything UNLESS my seller instructs me to do so!
I always go with the "I'm legally obligated to present any offer to my seller" approach, but I like something that you touched on.
You are NOT wasting my time, as it is my job. You MAY be wasting your time, but that's your business.
I love your original answer! I get the same question too. I just tell them that I don't consider it a waste of time to review offers and I hope that they don't consider it a waste of time to review the counter.
Totally agrree :)
I have specialized in REOs and HUDs for the last year and my clients/investors put in low bids but are serious. When they see a house that is not a foreclosure I advise them that we can always make an offer but not to expect an offer as low as the foreclosures. After doing my homework and finding out throught title how much is owed on the house or what it was purchased at we then come up with an offer that is not only good for them but reasonable.
Before having this conversation with a listing agent, I normally would tell a buyer, if you plan to make that offer we lose both ways.
First, the listing agent is going to ask me, why I'm even showing you a house you aren't qualified to buy.
Secondly, if I tell them you can afford the listing price, you just lost your negotiating power.
Buyer agents just need to know how to explain that to their clients... and if they keep working with that client after knowing their intentions, then there's something definitely wrong with their business plan.
Richard - I agree with you. I get that question too. I always say, bring an offer and I will present it. Your clients won't know until they start a negotiation. When an embarrassed buyers agent brings a low ball offer (in writing), I always tell them I will present it to my sellers. Reminding them, the seller doesn't "have to respond at all". With any offer there are 3 choices: accept, counter, or reject. None of this is a waste of time. Have a great day!
I can't tell you how many times we get low offers and next thing you know they come way up. If someone is at least serious enough to write on the property I say send the offer on over.
My response is like those who have responded before: "My seller will look at all offers. Please bring me your contract and I will present it." To this day, I have never had a contract brought to me from an agent or buyer who called and asked me what my seller would take. My experience here has been if a buyer really wants to buy, a contract is written and a phone call is only made when the agent has a question about the property or is letting me know he or she is dropping off an offer.
Well said Rich. I think sometimes we hold on to "prospective buyers" way too long. At some point in time I think we need to cut our losses and move on.
Nice to see common sense prevails in your post - put it in writing and I will present it to my seller! And I agree that those who usually ask that question never appear with a written offer.
You're absolutely right.... as far as I know, my seller will always take AT LEAST the asking price ... often, they will take more ... and no matter what the offer is, it is always an offer I will present to my clients. It's never a waste of time to look after my clients' best interests.
Excellent post, that is the only way we can represent the seller in a fiduciary service
This is a great discussion! I've advised buyers that they need to see the transaction from the seller's perspective. I ask, "Would you be comfortable starting a negotiation with someone who offered 60% of what you asked on your home?" It's a little rhetorical, and I don't expect answers. I just put it out there. I also try and prepare buyers that they may just flat out not get an answer, and then if they want to put in another offer, they're negotiating against themselves. Then I go home and roll my eyes.
Ray is right, ticking off the seller from the get go is a bad way to begin a negotiation. I used to point that out, and let them think about it.
Debi
Rich - I like the cut of your jib. This is a perfect summary of how to handle this question and negotiations in general.
A well deserved feature Rich! Well, I know they'll take asking price! That's what I always say. And the same as you, I always say that I never consider presenting an offer to my client a waste of time.
I'm with you, Rich. I got a call last week from another agent wanting to know if my seller would take "x". I told him to put it in writing and I'd present it - of course, I've yet to see the offer.
Hi Richard, In this market the range of offers is much wider than ever. Given that, if you are going to write an embarrassing offer it might also waste your time !
So true ... an offer is NEVER a waste of time. It's a win-win all around, bring me those offers, whatever they are
Jean Richer
Ottawa, ON
This is a great post Richard, thanks for sharing it! Your answer to the question is perfect and I'm going to use it next time I'm asked.
Rich, I answer exactly the same way when asked that question, but I sometimes counter back with "What is your buyer willing to pay? Turning the tables so to speak. A buyer does not want to answer that question any more than a seller does.
Funny post, and I like your answer, I'm going to use that next time I get the question.
Richard: I have had more than one agent attempt to verbally pre-negotiate an offer in an attempt not to waste my time. A few have actually hung up on me after telling them to submit their best offer in writing and it will be presented to the seller. Bottom feeders are everywhere!
Well around our parts of the country which is 70% first time home buyers right now - bringing in an offer at list will surely get a rejection. Most are going way over list - and than there is the 2nd round of highest and best. Not like the old days around here. I do agree - it is our job to present all offers and hopefully make them go somewhere even thou totally stupid offers. And yes - occassionaly they're stupid offers and don't have chance in heck of getting anywhere! Maybe TV should go off air at night?
my response, as the listing agent, is:
"we never know until a contract is negotiated, what the seller will really take. So why don't we find out together. Put something in writing, and we'll see where it goes"
Hi Richard,
I love a post that defines the obvious! The funny part is I hear listing agents often respond with horrible answers such as "just write it up and I'll get my seller to sign it!"
Great post! Great answer.
Verlyn
Great attitude. Everything would go so much smoother if everyone looked at business the way you do.
Great post!
Richard, I love your answer! And I also encourage buyers' agents or associates to put it in writing. At the end of the day, nobody but the Sellers know what they will take. Anyone who has been in the business for more than a year or two has had a surprise at least once or twice when the Seller took less than they may have indicated earlier.
"And nor do I wish to waste yours. What's your client approved for?"
Your right Richard, it is our job as listing agents to present all offers to our clients. It is the buyer's agent's job to educate them on the market and let them know that more than likely a 50% offer is not going to cut it. My response to my buyer's question about a feasible offer price is, "well, let's run some comparables and see if this house is priced correctly. If it is, then our offer should be very close to list price, if not we should offer something in the range of the comparables." That way we have something to stand on when we make our offer. Not just some arbitrary number. Great post and best of luck to you.
Sometimes I ask if the sellers have an "wiggle room." Only becasue I can better educate my buyers on . . . maybe some of their unreasonable expectations. I remember one buyer had me write up such a ridiculous offer that the seller wanted to know if they also wanted him to purchase round-trip airfair with hotel accomdations to Hawaii for them too! It was a message I passed along to my clients.
Richard - Ever want to ask them how they would feel if their boss asked them everyday: How much will you work for per hour today?
great post and right on target... i have a property listed that would most best fit an investor and an agent called me yesterday. she said her client was an investor and wasn't one of those ones that wants to offer ridiculous low balls, i told her good for her because i wouldn't want her to be spinning her wheels...put an offer it on it
Usually I ask that question because the buyer wants to know.
It's hard in this business these days...I'm stating the obvious. I have had a seller's agent recently tell me "That offer is insulting," and another tell me, "Send something over. I'll do my best to make it work." We know which words are more encouraging to the buyer to write an offer.
Sarah in Nashville
I like this post Rich. Your right on!
As a buyer's agent I always ask this question. And it's amazing what you will hear in response.
Just yesterday I was talking to a listing agent and she basically told me that the seller knew they were going to have to come down significantly in order to get it sold.
Hmmmm, good to know.
Great Blog. I too encourage agents to write an offer, but I do ask them to share the comps with their buyer.
Richard, An offer is the first point of negotiation, write 'em up and send 'em over and let's talk! Congratulations on the feature...I love your attitude!
Some things never change and that question continues to be one of them! My answer is always the same as yours, "I know they will take the asking price"! However, there are some agents that when asked that question, 'crumble and give away the store'. They forget about their fiduciary duty to the seller and start focusing on their own need for a commission. So, I do understand why that question continues to be asked.....
Most everyone seems to be looking for a deal nowadays, it is our job to get them their deal.
You could always turn it around on them and ask, what's the highest your client will go. This might show them the futility of their question.
That is one of my pet peeves, "What's their bottom dollar?" I always answer with, "I don't know. I've never asked that question. I suppose you'll have to write an offer an find out for yourself."
That's a good attitude Richard. And a good response. I usually say, "My client wants to sell. Put something in writing and we can get to work on it. It's never a waste of time. Do you have something better to do?. That usually ends the fishing expedition right there.
Richard - I often get asked that question and I always tell the buyer's agent to put it in writing. Of course they don't want to "waste" their time, but I only present written offers.
We are supposed to present offers....writen or otherwise! Sue the written can be addressed more expeditiously for signatures, but we are have to present all offers.
Patricia/Seacoast NH
Rich like you I never consider any offer a wasted of time, it is certainly a part of the job.
I always tell my buyer to put in an offer. We win some and we lose some. No feelings hurt
GOOD MORNING RICH! Yours is my favorite post of the day! I've asked agents that if they think it's a waste of time, to at least email it so we don't waste paper - but certainly write it up! --Gab
Richard, excellent post. More often than not, the agent knows the offer won't be accepted and just doesn't want to go through the hassle of writing an offer.
This is one of the best posts I've read in the last few weeks! I always tell the buyer's agent to write it up and we will be happy to review it, but I may "borrow" your response. :-)
Rich - This is a fantastic post with an excellent response to the age old question.
Why do you ask? Usually I get a dumb look or silence on the phone. It is a 2 way street.
Ty
I love your response. I always encourage all offers. It might not start where we want but at least it gets all parties into contact and negotiations, which is critical to ever agreeing on a deal!
Rich, your such a nice guy and no matter what, as you say, you have to present the offer. It makes me nuts that agents still call with that question. Just write the offer and let the seller decide! If you don't want to insult the seller, Mr. Buyers Agent, how about doing your job and showing the buyers the comparable sales in the neighborhood? It's an insult to the seller if you don't!
absolutely on target, the seller will accept the list price!
I see a lot of people put out a lot low ball offers like a shot gun. These people are a waste of time. If a house is priced decently why would any seller take 20% less when they could just mark it down another 5-10% and get a bunch of offers.
However, I agree send me the offer and I will take a look at it, if they are serious buyers.
I agree, it's never a waste of time to present a written offer. And I just may have to use the line on the buyer agent to ask if their buyer is a serious buyer, definitely an attention-getter.
I agree. I know this is not the same thing, but I do find it a waste of my time and my buyer's time when listing agents list a home at $175,000 when they know it will sell for $250,000. I agree that listing a home a few thousand dollars below market value is a good way to get multiple offers and get the most for a home. But listing a home $75,000 below where it will sell is a huge waste of my buyer's time and my time. It gets their hopes up, thinking they can have this house when they can't. Of course, they want to see it "just in case" and we waste time seeing it and writing an offer.
The reality is the listing agent often doesn't know what the seller will or won't do (doggone it, they're people and they are unpredictable). I cannot say the number of times that I've been surprisedby the seller -- both directions. They taken low offers that I never dreamed would fly and turned down offers that I thought were pretty good... So, it is potentially harmful to the buyer to ask the listing agent to pre-screen the offer before it's written.
Of course there's a time when it's just ridiculous to write, but if it's borderline, I say go for it. It's not wasting your time/my time, is our job.
Wonderful post. I just love the way you phrase it. I'm going to have to try that some time.
Congrats on the well deserved feature post.
I'm always happy to see and review an offer on any of my listings. You never know when an offer that doesn't appear to be great can be turned around.
I'm using that line. I'm pretty sure they will accept the listing price.
I tell buyers and buyers' agents that there is one sure way not to buy the house in which they are interested: don't write an offer. On the other hand, I tell them, if you do write a serious offer, the buyer will look at it and the two parties may come together on an agreement. Not rocket science!
Yes, for all those who ask...I do know what the seller will take...the list price.
Alternate answer: Yes, I do know what the seller will take. But if I tell you, I will have to kill you
Good response Richard. When I'm representing a Buyer its amazing the information the listing agent will divulge... I love it!
Don't shoot the messenger! Most of the time my probing questions net information that does prove useful in negotiations. And as a listing agent, when I'm asked the question I use the opportunity to "position" the potential negotiations from my sellers standpoint.
When I am the listing agent, I always tell them just to send in any offer and we will respond. As the buyers agent, I always submit any offer my client want to submit and get as much information about the seller as possible from the listing agent. It is amazing what some of them are willing to share.
Rich -- great response -- and you can always say - of course they would consider something above the asking price as well. LOL. Seriously -- an offer is a starting point for a conversation about selling the property, Let's see what you have.
This is in line with "aren't all homes sold 'as is-where is'?" If my seller wanted to replace the kitchen cabinets and buy new appliances, he would have increased the asking price by $20,000 - he didn't. And that's why the price is set where it's at.
When I represent buyers, I am their advocate. When I represent sellers, I represent their interests. I just wish I could get the same consideration from the other side.
I agree with Jirius..I too will try to get as much information from the listing agent when writing an offer..and you would be surprised sometimes but what the listing agents will let slip out. But our job whether representing a buyer or a seller is to do as instructed to do. Write and offer and present that offer. All in the best interest of the client!
Very true Richard. If they know it is an unrealistic offer...then they are wasting their own time.
Yes. Yes. Yes. Tell it like it is. Maybe they need to fire their buyer. My seller would love to review whatever they see in writing. Verbal talking like this is normally ammunition for the buyer's agent to go back to the buyer to say something. They use your comment as the push to sway their buyer instead of doig what they should have done in the first place and put their fake buyer in check.
I love your response to that! I always tell them to write the offer up and present it...I got most of those calls when selling my own home ... they always wanted to verbal an offer before writing....and didn't understand when I asked for a written offer....