This does happen when one is a listing agent.
Prompted by Richard Weeks' Blog this morning, "I say a lowball offer is better than no offer at all."
I am in agreement with Richard's point, but we should go a step further. Let's never again even murmur "Lowball Offer" to clients.
Establishing Expectations and Goals:
We need to establish expectations in our Sellers, and one point that needs to be established is that there is no such thing as a "Lowball Offer." "Lowball" is a term that is loaded with emotional overtones. And we are being paid to reduce emotions in the interaction.
I tell my Sellers, "There is no such thing as a "Lowball offer." If it is 8 bucks and a ham sandwich, I am going to tell you. And you are not allowed to get angry. We have a goal to get you a great price for your home, and getting angry is not productive. Always bear in mind, the only number that matters is the final, net proceeds from your sale. Keep your eye on that ball."
Offers are either "Accepted," "Not Accepted," or "Negotiated." Either "Accepted" or "Negotiated" should be any Agent's goal. "Not Accepted," like the big RED scrawl "REJECTED" in the example that Richard mentions, may be posturing for ego gratification more than aimed at selling at a great price. Agents who pander to and encourage their clients' outrage at offers do a favor to no one with their unprofessional behavior.
Winning the Battle and losing the War:
Eight years ago we tried to buy a home in Cary. FSBO. We offered $178,000 on a $187,000 asking price. And we got slam-dunked. The Sellers felt "Lowballed" and "Insulted." Two silly knee-jerk responses. They should have countered with anything, or said that they preferred a full price offer, in a professional way. They would have received full price. My wife liked the house. But, their price was "Firm." And the crudely frosty letter they sent instead of a friendly phone call gave us pause about coming back to them. I told my wife, "I think we have been disqualified from owning their home," and she agreed. And 90 days later, they sold for $180,000, never knowing that we would have paid their full price had they handled if differently.
But, they got to stroke their egos in their determination to brush us off vehemently.
Let's never murmur "Lowball" to clients...
.
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Mike Jaquish, REALTOR®
919-880-2769 www.MikeJaquish.com
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Broker Associate, KELLER WILLIAMS® Realty, Cary, NC
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Harry,
Thanks for your reference to my blog.
I agree 100%. The word lowball should not be in a real estate agenets lexicon.
Like your point of accepted or not accepted. We have a reputation to maintain in the market we work with, What kind of rep do you want with future You want negotiating power before even giving a number.
Harry,
Thanks for the Reblog!
Sellers have a tendency to take things very personal, as they lived in this house most likely for a number of years and have an emotional attachment. Unfortunately, the appraiser doesn't put value on an emotional attachment. We need to educate our Sellers more on what to expect and how to address it if it does happen.
It looks like another great post today. Thanks
Thanks for posting another informative post for us today. Have a great weekend
I just want to thank you for the continued well informed posts for us on ActiveRain. Have a great weekend.