Real Estate Negotiations?
Real estate professionals, have you ever seen a message from an opposing agent that looked something like this:
While I understand your clients disappointment that there is no counter, please do not make assumptions regarding what I have advised my clients. My sellers made the decision to decline the offer. There are many factors which played into their decision to do so, but ultimately, that was their decision. Again, best of luck with your buyers and finding the right home for them.
Someone please let me know that I am out of line thinking this is absolutely ridiculous. How can you call yourself a real estate professional when you let your clients not counter an offer? This is basic business 101 in negotiating, someone makes an offer, your clients take into consideration all the factors that are in play in their lives and you (as the real estate professional) help them to formulate a counter that is conducive for their situation. Simple and basic business principles, at the very least tell the offering party, “we cannot move from where we are listed in the market.”
In my opinion, if this is the case, you didn’t do your job, you should not be listing a property without advising your clients about basic negotiations. You should not be listing properties at the very minimum that your clients need, you are not working in the best interest of the client. Again, if you are real estate pro, you should know that in this market, property is selling roughly 89% of list price, not including subsidies. Therefore, you should be advising your clients they will most likely get a lower than asking offer, so they should build that consideration in the listing price, not listing at exactly what they financially need.
Also, if the client is trying to sell their home over current market value then you are not doing your job in being upfront with them about the true value of the property, you are wasting their time and yours listing over market price in our real estate economy. The only way I would condone listing a property when a client has to get over market value is to get your signs out for marketing or to show a bank in a short sale situation that a home is not what it is worth.
Has our industry forgotten how to negotiate? Sellers, if you are reading this, do yourself a favor and do not list your property with an agent that does not consult you about negotiating. Buyers, if you make an offer on a property and someone does not counter or asks you to bid against yourself, move on, there are too many sellers out there that are willing to work out a best case scenario for you and them through a good negotiation.
Every one reading this please let me know how you feel regarding this type of situation.