Gary Morris : Are buyers watching too much TV?

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Are buyers watching too much TV?

By: Gary Morris
Tuesday, July 03, 2007 12:53 AM

I have had a few offers come in lately on a couple of my listings. Keep in mind that the listings are priced fair and are not overpriced.

The offers had the buyers making an offer that is 15% below list price ($125K-$175K homes), the buyer wants to use one of the FHA grant programs where the seller contributes 3% to a non-profit and pay a $300 to $500 "fee" for the privilege of doing so, the buyer wants the seller to pay $3000 towards the buyer's closing costs and one even wanted my seller to pay the buyer's rent penalty for breaking the lease.

Are buyers today watching too much (HG)TV and thinking that all sellers are desperate or can afford to even consider such offers? It is getting to be a real waste of time to even present some of the offers I have been getting lately. I spend more time calming the seller down than explaining what their options are.

Comments

Member Since '06	Todd Clark said: Gary, I keep seeing investors doing this and then the offers are being accepted. Can't blame them for trying, if the sellers are watching the same shows. Todd July 3, 2007 12:20 AM
Member Since '06	Margaret Rodgers said: Those things have been the norm here for at least a year,not with just investors either. July 3, 2007 5:18 AM
Member Since '05	Dan Grammatica, e-PRO said: until it sells its overpriced...we all have them. The sellers place the listing price but its the buyers who determine the market price. A property is only worth what a buyer is willing to pay. The buyers always determine the market price and appraisers will determine if the buyers are paying to much. http://LitchfieldCountyMLS.com July 3, 2007 7:20 AM
Member Since '07	Shelly Constantz said: It is interesting. I have buyers come in from out of town and ask what is the norm here, 10% below asking, 15% below asking, or 20% below asking? What? We don't have a norm here. We will check to see if a property is priced at what the market has been paying, you are then free to offer what you feel the property is worth. Then they get mad when the don't get the property... In my humble opinion, you can make an aggressive offer, but if you make an overly aggressive offer be prepared for no and have a back up plan. I call this your BATNA (Best Alternative To A Negotiated Agreement). Don't have one? Maybe you should think twice about playing this game... Shelly July 3, 2007 7:54 AM
Member Since '03	Team Stevens said: I think the world watches to much TV, me especially included. It stresses me out. Have a great 4th. Christina www.Galveston4sale.com www.SanAntonio4sale.net www.LasVgeas4sal.net July 3, 2007 11:47 AM
Member Since '03	Mark Cohen, Broker said: What do you mean by "priced fair"? The only fair price is the one agreed upon by a buyer and seller on a contract. I have had sellers come way down from their asking price and buyers go way up from their offer price. Nobody can predict what somebody will do concerning price. July 3, 2007 1:08 PM
Member Since '07	Gary Morris said: Mark, sorry about the lack of proper terminology...I should have said the properties were priced according to what a current market analysis said the property should be worth. I know that a property is only worth what a buyer is willing to pay for it, but to offer that much below the market value (in my area) can sometimes ruffle a seller's feathers. All markets are different and this may be typical in some areas but historically, not here. Maybe a sign of things to come. July 3, 2007 6:31 PM