I'm working with 2 buyers who both lost the homes they wanted to buy (someone else bought the homes)  because they "wanted to look some more."  Nothing like NOT getting what you want to wake up a buyer.  It's something they need to experience I think.  There ARE buyers out there! But now they know - if they love a home, submit an offer and don't wait.

Low ball offers:  I don't even write a contract.  I tell the buyer that it's such a low offer, we're going to do a verbal (or a one page Letter of Intent) 1st.  No sense wasting ink & paper & my time.  It kinda tickles me when the seller just says "no" and doesn't even counter.  My buyer couldn't believe it.  "What do we do now?" he asked.  "Submit a MUCH higher offer or move on" I tell em.  "Of course you made the seller mad, so who knows if they'll even accept an offer at all right now."  Seen THAT happen too.

When a buyer wants to make a stupid LOW offer (yes, some of them are just stupid)  I point out that IF their offer gets accepted, they are NOT getting a $250K house for $200K.  Once they close on the property, the home will be worth $200K (cause that's what appraisers and agents will use as comps) so they're just driving down the value of their own home.  Without fail, the buyer eyes glaze over because "hadn't thought of that."  

Sellers: If I don't think a listing will sell because of the price that a seller wants, I walk away.  Probably why I don't have any listings as of now :)  

There are just TOO many homes on the market for buyers to choose from right now.  We have a 20 MONTH inventory as of 12-2007 and there are still twice as many homes being listed as being sold every month.

Steve, I have had buyers see the national news and want to low-ball someone, anyone just to see if they would take the deal.  But our market out here in Idaho is the best ever and sellers tell them to take a hike.  The fact is that most sellers know that the market is great here, so they won't come off their price.  We have a good mix of buyers and sellers, but buyers see the national trend and think all is the same everywhere.  Sellers think their property is Priceless! I guess in some of the markets the buyer is getting his due?  Here in Idaho it appears the  seller is getting his?  I think both sides of the aisle are hard to deal with.

In todays time we don't have any idea when a home is going to sell. Buyers believe the homes will be out there forever. But all of a sudden a property gets hot and more then one person is interested in it. By waiting they take this chance. Eveyone is waiting for the lowest price. If they like it they need to write and at least see what the sellers will take. By waiting they may lose the home they really wanted. We have to help them understand this could happen. Once they have lost a home they really wanted they will alway be comparing anything they see to it. So remember if you are shoppping for a home and not just a house buy the one you want to call home.

I would start with how serious the buyer is ...if they want to test the market by submitting the low ball offer it is wasting everyones time. But we have so many bank owned and short sale that they are willing to take their chance. In those situation I have written low offers and they have been accepted or countered and accepted close to. For buyers over the fence I sit with them and compare how much they are paying to rent verus how much the mortgage comes out. Rental have gone up in our area so thats the new tool we can use. Mortgage rate has been proving us wrong but it is still historically lowest rate.

We do have low unemployment that does give some additional comfort in converting the buyers.

Real Estate is long term investment ...

Good Luck

[Steven sez: they are NOT getting a $250K house for $200K.  Once they close on the property, the home will be worth $200K (cause that's what appraisers and agents will use as comps) so they're just driving down the value of their own home.]

Heh heh heh. Light bulb switch on moment!  

I don't do ANYTHING to get a buyer off the fence. Just keep them informed and let them decide.

It's their baby and they will have to burp it!  

They are more than entitled to choose its birthday!  :)

When a client asks me 'what should they do, what would YOU do' . . . I tell them:

I'm an investor too, looking for the best deal. But no emotional attachment to investments.

Are you willing to walk away? Then play the game--no remorse if it doesn't fly.

If it's a personal residence, I IMMEDIATELY write, no games.

I want to live in THAT house and not going to risk someone else feeling the same and beating me to it.