Curiosity... How do YOU present a Low-ball offer??

[Bill Saunders]

It's a curse of the national news. Buyers everywhere think that you can get a home that should sell in a particular market, even in THIS distressed economy.. should sell for 250-300k for 98k (your market may be higher, so adjust the numbers accordingly). You educate, show the stats, etc. and press on...you represent the buyer here, not yourself, and if that's what they are going to offer, you support that. You write it up, shaking your head and....

How do you grease the skids for presenting what you, yourself would consider a laughable, insulting offer to the other agent? How do you keep your foot in the door for your clients, hoping that at least the seller will come out on the dance floor?

[Jennifer Allan]

What a GREAT question!

The first thing to do (or rather, not do) is never to apologize for your offer. Don't say things like "Well, it's a start" or "The buyer is expecting you to counter." Don't give any indication that your buyer is open to a counter unless your buyer tells you to. I'm always stunned when a buyer agent apologizes to me (the listing agent) for a crummy offer - that's SO inappropriate if he's representing the buyer!

On the other hand, don't just fax or email over the crummy offer without any notice.

And on the third hand (tee hee), don't insult the home, the price or the seller hoping to justify the low offer price.

My best advice is to be pleasant with the listing agent about it - not apologetic or defensive, but pleasant. At least, come across as a professional real estate agent who would be a pleasure to work with - one who is competent and knowledgeable, not some idiot fresh off the turnip truck. The better of an impression YOU make on the listing agent, the better impression your offer will make on him or her.

That said, don't call up the agent and gush over the fabulous offer you just put together and you can't wait to present. That's just annoying and fake.

One tactic I've used (although not with as much success as I hoped) is to mention that we based our offer on the recent market activity and couldn't find much closer to the asking price. If that's truly the case, it's worth trying, I suppose. But if your buyer is just a low-baller (which is just fine to be) then that'll just open up a can o'worms better left closed.

Looking forward to others' thoughts!!!!

Also wondering about strategies in presenting a low-ball offer to your seller client...

[Bill Saunders]

I tend to give them a call, and attach a cover letter to the agent stating with a smiley face or something friendly that I wished it was a full price offer and that we all wished they were all full price or better, and then go into some of the compilation of market activity in the area of the home... making certain that I say something like, I know you have gone over the recent market activity with your client (doubt that they have, but maybe... just in case...here it is...), but looking at the comparables, etc., etc. and that I wouldn't be doing my client justice if I didn't re-point these out. yada yada yada...
I attach the comps in a little package attached to the contract...

If it is really low something about market price being what a willing and able buyer will pay... and attach a preapproval (hopefully) letter at the amount of the offer.

I have had good results with the former...and what one would expect from the latter . I work hard to meet as many other agents in town, by being active in general realtor® activities, and have worked hard, following your soulful practices to establish myself as "One of the good guys to work with" among other brokers and agents. It sure helps when you can present a lowball to an agent and smile, like it is the best thing since sliced bread....

YOU know it's a lowball...SHE knows its a lowball... you keep smiling, she keeps smiling with a big sigh and , "Well, I have to present it." I respond with a smile and say," Yes, you do. Let me know if there is anything else you need from me." Normally there is either a good natured response of, "No, you have done quite enough." or "Yes, about twenty thousand more dollars on this offer."

I too am interested in other responses.... and OH, Merry Christmas everybody!

[Liviray]

Alright, Now that Im no longer wet......and left my anger in another area...Ill take.

I had a Condo Listing...Heavy Smoker for years buttoned up all the windows tight and smoked a whole factory of Camels, non filter. The wall were so badly stained it took three coats of kills and a butter yellow paint to cover up the damage that had been done to the property, not to mention a crime scene carpet cleaning company who did everything they could to get rid of the odors to no avail. Kitchen not updated, the list runs on and on.

As I ran comps on the property...I knew...Knew, we were not going to get an offer even close.

Several showing appointments later...we by gods grace got an offer, and it was LOW...LOW....LOW. I also received a very detailed letter from the Buyers Agent, as to exactly how they were basing the offer...it was polite, direct, kind and to the point. It sure buffered the presentation to the Sellers- a factually based nice note about the home, and why the offer was as low as it was.

Random Lowball offers...I just run and hide and hold my breath....( Just kidding! )

That letter made an impression on me, and I always try and give a listing agent the same Curtice I received....a nice letter explaining why- that can be presented to the sellers can go a long way.

[Bill Saunders]

I can see it going a long way to help diffuse misplaced frustration and anger.

[KarenSalmon]

WIth a smile and a "lets see if we can make this work". Usually my buyers know where FMV is and where it most likely will sell but they have to try and I'm following their "lawful instructions".