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Top 3 Ways to Turn a Seller Off

Top 3 Ways to Turn a Seller Off: Buyers, if you want a home’s seller to play ball, best practice is to avoid these 3 pitfalls:

Top 3 Ways to Turn a Seller Off:  Buyers, if you want a home’s seller to play ball, best practice is to avoid these 3 pitfalls:

1. Unjustified, extreme lowball offers: It’s no secret that buyers have the upper hand in many markets right now. (To be clear, I said ‘many’ – not ‘every’ – your agent can help you understand what the dynamics are in your market.) But let’s be realistic, here. No seller can afford to give away their home at a price far below what it’s worth on today’s market. Lowballing a seller at a price far below the recent sales prices of similar homes in the neighborhood on the ‘let’s-take-a-stab’ plan, is highly likely to turn them off.  And that, in turn, will cause the seller to view your offer – and you – as disrespectful and wasteful of their time.

Not only will they turn down your offer, but they may not even bother with a counteroffer, rendering your efforts at securing that particular home dead in the water.

Buyers: Review the recent sale prices of similar homes in the neighborhood (aka “comps”) with your agent before you make your offer. Also, ask them to help you factor in other market data, like the average list price-to-sale price ratio and the average number of days neighborhood homes stay on the market. It’s all right to come in lower than asking, if the market data supports such an offer; just be sure your offer is based on reality – and not your fantastical hallucination about scoring the bargain of the millennium.

2. Buyer-side mortgage fails: Plenty of employed buyers with decent credit and cash in the bank have been turned down for a mortgage these past few years. That means buyers can’t assume (a) that they’ll be approved for the amount of loan they need to buy the house they want, or (b) that they’ll be approved for a loan at all. Your inability to get approved for a home loan can create all sorts of problems not just for you, but also for your home’s seller. The average seller’s  worst case scenario is that  they accept your offer only to find out a few weeks, or months, later that you can’t get the loan you need to close the deal.

Buyers: It’s not overkill to start working with a mortgage professional as far as six months or a year in advance of starting your house hunt to get pre-approved for a loan. Make sure you get a clear understanding of the amount you qualify for, then work with your real estate agent from there to determine the price range you should house hunt in. And whatever you do – don’t buy a new car, open new credit cards or even change your line of work before your escrow closes, unless you consult closely with your mortgage professional before you make that move.

Tip for Sellers: Work with your agent to vet buyers before you sign a contract. Factor in their down payment and earnest money deposit, and feel free to counteroffer these items, not just the offer price. It’s not overkill to have your agent contact the buyer’s mortgage broker to see how reliable the buyer’s pre-approval really is.

3. Bashing the seller’s home: Home bashing happens when buyers start bad-mouthing (aka “trash talking”) the place and/or the neighborhood in hopes of getting a lower asking price. Examples: pointing out all the foreclosures in the area, saying the house down the street just sold for much lower than the asking price on this house, saying you’ll need to rip out the entire kitchen before you even consider moving in – saying any of these things to a seller who happens to be at home during the showing or the inspection is probably one of the fastest ways to turn them all the way off.

Buyers: Bad-mouthing a house or neighborhood won’t work to get you a lower price. Instead, it only serves to irritate the seller and motivate them to come up with all sorts of reasons why they shouldn’t sell their home to you! Remember: homes hold incredible emotional experiences for owners. Make an offer you’re comfortable with and keep the negative comments to yourself.

If there are legitimate, factual reasons underlying your decision to make an offer at a price the seller might see as a lowball, ask your agent to respectfully communicate those facts to the seller’s agent.

 

For 3 ways to turn off your buyer go HERE

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This post is brought to you by Renee Daley, your real estate expert in Fairfield and Southport Connecticut.  Please contact me if I can help you with any of your real estate needs.

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E. Brckey April 11, 2013 at 05:49 PM
From the buyer side, let's be honest about "fantastical hallucinations" from the sellers. A house ON the Long Island Sound where the agent said Sandy destroyed the yard had the disclosure statement checked no for flood zone. And from the agent comments, we assume Sandy politely went around the house. Point 1: List prices are marked up as high as twice the appraised value. Based on what reality? Sellers are offended by low offers but then drop their price time and again. Point 2: Having the financing fall through is just plain miserable for everyone. It's not the buyers trying to pull one over on the sellers. Point 3: Unfortunately, comps are not comps when the condition of neighborhoring houses ranges from total renovation to tear down, and sale prices don't reflect condition. Some houses need a total gut before moving in. Sorry if that's offensive, but wow, have we been offended by the time we lost looking at houses where the real solution involves a bull dozer. Location counts, but sellers need to realize their two bedroom antique is not valued the same as the neighbor's newly built mansion. If the house sells quickly, price, condition and desirability match. Otherwise, it's on the sellers. And for the record, they are every bit as interested in maximizing their investment as the buyers. Bottom line: Buyers can be turned off too.

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