Offer Strategy

poppysarah

It's a letter someone has sent - giving reasoning for their offer being lower than the seller wants.

The OP asked for any ideas - and I thought this approach, whilst a little extreme, was actually worth a read.

elsteshepardo

Thanks Poppysarah

defo another string to the bow. I do think in the area we are buying EA still seem to think properties are worth more than people are now expecting to buy.

I also like the line about moving in for a home and not for an investment - this is exactly what we're doing, and we wouldn't worry too much if in the short term the value drops more. I suppose we're lucky that we will have a small LTV mortgage, but still, this is a family home for years to come, not a way of making a fast buck.

Still waiting for news back from the EA about our offer - will keep you posted.

chickmug

elsteshepardo wrote: »

Thanks Poppysarah

defo another string to the bow. I do think in the area we are buying EA still seem to think properties are worth more than people are now expecting to buy.

As I keep saying the agents are not the ones that are deluded. They have to take their instruction from their clients -- the sellers. The sellers are the ones who think their place is worth more than it is.

chickmug

poppysarah wrote: »

It's a letter someone has sent - giving reasoning for their offer being lower than the seller wants.

The OP asked for any ideas - and I thought this approach, whilst a little extreme, was actually worth a read.

Yes I see and it seems like a good idea.

However I would like to tell you how it is from the EA's perspective. You may not like it but it will help, on offering, if you know how the other side think. Agents will have heard all manner of pre-amble before the actual offer is made. However it will go in one ear and straight out of the other as they know the value and they also know what constraints they are working under for their client the seller. So all the EA will want to know is the bottom line and if you are in a position to make the offer.

As an agent I have had all types use all types of argument for the low offers and yes there are times when I used to laugh and say "You must be joking".

Whatever the market conditions there are those that will try it on and they deserve being laughed at for their cheek. I've even had would be buyers try and offer before viewing. On these latter types I will not even go into the conversation with them and tell them there is no way I will entertain offers being made without them viewing and the seller having met them.

ib0211

chickmug wrote: »

As an agent I have had all types use all types of argument for the low offers and yes there are times when I used to laugh and say "You must be joking".

Some people probably do try and take the proverbial and go way too low, yes. But as you also point out in your other posts, it's the sellers that are pricing their properties higher and feeling that's what it's worth - even when it maybe isn't.

So with that in mind, surely if someone is making an offer and giving you reasons for that offer price, you should be passing on that information to the vendor so they can maybe understand why they're getting lower offers than they'd hoped?

Yes, some potential buyers will still try it on - but others won't be and could be offering quite valid feedback?

poppysarah

chickmug wrote: »

As I keep saying the agents are not the ones that are deluded. They have to take their instruction from their clients -- the sellers. The sellers are the ones who think their place is worth more than it is.

Maybe there's a call for a "reality check" service for sellers.

Do EA do that? Review properties that haven't sold? Or is it considered better to have lots of overpriced property stuck on the books rather than saying "reduce price or leave"

chickmug

ib0211 wrote: »

Some people probably do try and take the proverbial and go way too low, yes. But as you also point out in your other posts, it's the sellers that are pricing their properties higher and feeling that's what it's worth - even when it maybe isn't.

So with that in mind, surely if someone is making an offer and giving you reasons for that offer price, you should be passing on that information to the vendor so they can maybe understand why they're getting lower offers than they'd hoped?

Yes, some potential buyers will still try it on - but others won't be and could be offering quite valid feedback?

Yes all good points and yes sellers deserve the best and most honest feedback everytime a person views. Often the seller does not like the feedback and has a go at us and we have to remind them it is not our feedback but that of the viewer.

I guess I am trying to give the other point of view in a very honest way and do know it will annoy many that read this forum. But when negotiating you are best to see it from all points of view.

When I recall some of the silly offers being made, before I retired just over a year ago, when the market wasn't as bad, I have no qualms about having laughed them off.

My usual comment would be "just you can't afford it doesn't mean to say the seller should subsidise you". This was used when getting really silly offers like £200,000 on £300,00 type of differences especially when the asking price was in the right ball park. I found that many of those making silly offers were known to other agents and doubt they ever bought as they semed to be serious 'time wasters'.

chickmug

poppysarah wrote: »

Maybe there's a call for a "reality check" service for sellers.

Do EA do that? Review properties that haven't sold? Or is it considered better to have lots of overpriced property stuck on the books rather than saying "reduce price or leave"

I know how we worked which was for me every week to take a set of the sales details for every place that wasn't under offer and look through and ask myself what more could we do to maximise the chances of getting a buyer.

I reviewed the sales details, the abridged lists, words used in adverts, web site entrys & the photos. Then ask the question why isn't it selling which in ur case was nearly always the price. Then contact the sellers although you have a number that make it clear they will NOT budge whatever the market is saying. We always used to confirm our real feelings on valaution when taking a place on lest the seller forgets our advice from the outset. We further confirm cyclically chats we have with them about price.

It is frustrating when it is clearly overpriced and you are de-instructed and it is put with another agent especially when it is one with poor marketing.

Then when a place goes 'under offer' the file is looked at every single day with the question asked what can we do today to ensure the sale keeps progressing as fast and smoothly as possible.

QTPie

Well that sounds like how an estate agent SHOULD be, but I think that you are "one in a million" (or, at least, "one in a thousand"). I guess like ANY line of work: you get some amazing ones, but a lot of fairly average (or below average) ones.

Wish they were all like you

QT

chickmug wrote: »

I know how we worked which was for me every week to take a set of the sales details for every place that wasn't under offer and look through and ask myself what more could we do to maximise the chances of getting a buyer.

I reviewed the sales details, the abridged lists, words used in adverts, web site entrys & the photos. Then ask the question why isn't it selling which in ur case was nearly always the price. Then contact the sellers although you have a number that make it clear they will NOT budge whatever the market is saying. We always used to confirm our real feelings on valaution when taking a place on lest the seller forgets our advice from the outset. We further confirm cyclically chats we have with them about price.

It is frustrating when it is clearly overpriced and you are de-instructed and it is put with another agent especially when it is one with poor marketing.

Then when a place goes 'under offer' the file is looked at every single day with the question asked what can we do today to ensure the sale keeps progressing as fast and smoothly as possible.

chickmug

QTPie wrote: »

Well that sounds like how an estate agent SHOULD be, but I think that you are "one in a million" (or, at least, "one in a thousand"). I guess like ANY line of work: you get some amazing ones, but a lot of fairly average (or below average) ones.

Wish they were all like you

QT

Well thank you we did try and because I was from a different background in the early days I had NO preconceptions. When posters say ALL EA's are carp it annoys me as there are some good ones but do take a bit of finding. I doubt many would give their time to helping others on this forum as it is not earning them money. They would rather spend their time playing golf.

Incidently I always said if I were prepared to lie more I would of got more new instructions. Tell them, at valuation their house was worth more than it was and tell them we could sell it in five minutes. I can sleep as I dealt with people as if I was doing it for myself.