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Leo Garcia

But mommy says...

By: Leo Garcia
Friday, May 04, 2007 6:37 PM

How do you handle the family of your prospective buyer? I see it all the time! Mom or dad knows best! (at least they they think they do) This is an example I have for you. One of the agents in my office was working with a young couple. She is very knowledgeable and do really care about her buyers. Well, their family decide to travel here to make sure "they get the best deal possible." They are unfamiliar with the market in this area, which since is next to a military base, there has been a lot of activity in the last 3 years. (BRAC, and soldiers leaving or returning from Iraq) So, the perfect home came on the market. It was a 3 bed, 2 bath, 2 car garage, really nice condition, great location, and only $87,000. In this area, these are the most sought homes, so when one hits the MLS, it does not last long especially if is under $100K. She took them right away, and they loved it! Because of the market demand for these homes, she adviced that a low offer was likely to be countered. There comes the mom "do not listen to her, ask for all closing costs and offer $10,000 less... we know better the market is slow, they will take the offer" As it was expected, the offer was rejected. The buyers then offered the full price; however, there was a higher offer on the table already. Now, it became a bidding war! The buyers had to bid $92,000 without any concessions in order to get the offer accepted. When will people look at the facts on hand. Not every market is the same! How would you handle the situation? Would you walk away or try to sell it twice...once to the buyers and once to the overprotective parents who will challenge every statement you make?

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Comments

Klaus Nicholson
Member Since '07

Klaus Nicholson said:

Sell mom of course.  Then as gently and straightforward as possible tell mom she does not know what she is talking about.  Very similar to telling a low-balling investor "your crazy", I'm not going to waste my time writing that offer up.

Around here great deals are gone the same day and I'm in an Army town.  What works for me is letting purchasers know that while we are negotiating better offers may come along.   Good Luck!

Realtor, Columbus Ga

May 4, 2007 6:48 PM
Todd Clark
Member Since '06

Todd Clark said:

Sometimes you just can't win. You have to try your best and keep your games face on. If the offer isn't accepted, you need to sit down with the young couple and explain that the family doesn't know the area and each area is different.

Todd

May 4, 2007 7:06 PM
Catherine Bosch
Member Since '07

Catherine Bosch said:

Leo, I fully understand because I am in a hot market for anything that is priced right and people from slow markets think they can use the same tactics but they can't get away with it here. I understand the mother trying to protect the child from making what she thought was a bad business decision, and that is why I would not take it personal. What it really comes down to is we work our real estate market every day, we therefore know what is a good deal and what we can bargain for.

May 4, 2007 7:55 PM
Catherine Bosch
Member Since '07

Catherine Bosch said:

Klaus, sell the mother! That is funny!

May 4, 2007 7:55 PM
Anastasia Boyd
Member Since '05

Anastasia Boyd said:

Very early in the qualifying interview or initial meeting with buyers, I ask, (and MAKE SURE to get a satisfactory response) "Is there ANYONE else that will be involved in your decision should we find the right home at the right price?" If Mom or Uncle Joe comes up I insist they are along through the entire purchasing process and that they are fully aware of the market.

I also do a Market Evaluation Analysis just as I would for sellers... this always gets the offer in line.

Better to turn them down today than to let them down after a whole bunch of running around.

Don't lose or give up control of the deal to Mom... she'll never close it for you!

Regards,

Anastasia

May 4, 2007 10:41 PM
Jody Deeds
Member Since '06

Jody Deeds said:

I'm with Anastasia...ask "Is there anyone else involved in the decision making process?"  

If so, invite the parents or whoever it is to join you on showings, etc.  Make them feel as if they're as important to you as your client.  Go through the 20 questions, show your proof, do what you can to put everyone at ease.

It may mean you have to diger a little deeper.  Those family members may have bought a home 20 years ago and don't realize/understand how the market and process has changed since then.  

Family members, although sometimes draining, don't set out to maker your job harder.  REALLY!  They're just trying to protect their family, just as you want to protect your client.  

May 11, 2007 7:44 PM

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