List O'Demands

One of the more exasperating part of being a real estate agent is when a buyer decides they love the home they are looking at and then wants to put an offer in for significantly less than asking price. I can tell them different reasons why it isn't a good idea until the end of time. Rarely do buyers listen.

Most of the time the seller will:

1. ignore the offer
2. wait until something better comes along (in the case of a short sale or bank foreclosure)
3. counter back with something much more reasonable.

In every case, the other agent and I are groaning, knowing what has happened is a colossal waste of time, and will result in either no sale or a sale with ill-will among the parties ("I am selling it for less, so I won't fix the leaky sink...").

My experience shows me buyers need to learn on their own. The ridiculous lowball game benefits nobody. And me telling them repeatedly, or more likely showing them historical trends, doesn't lend to my credibility--even when I am right. No, this is one they will have to learn the hard way. And generally they get the third time around--if I haven't fired them as my clients by then.

I'm working with one right now who fits this pattern. And, if I wasn't on this mad-dash to fix our undercapitalized issues, I would be referring her to someone I immensely dislike. But, I digress...

In general, home sales that do go through tend to done fairly. And, "fair" doesn't always mean the seller and buyer get their price. A reasonable buyer won't necessarily quibble about $2,000 when they are getting some extras thrown in. A seller is more likely to come down $2,000 when they are guaranteed a closing in 30 days. These things make a difference. Experience tells me those willing to look at a transaction as a win-win who are the happiest when the home closes.

I am keeping this in perspective as I sell my Waterford Home. We don't have a formal contract written up just yet. This is not unusual in the South. Generally, everything is done on a handshake and then when all terms are ironed out, then the paperwork is done.

Instead, we are working through Kirby, who is negotiating on our behalf. The tenant/buyer happens to be a licensed agent as well. I have never spoken with the tenant. I do know she is also post-pardum and was very pissy about the whole HOA swimming pool thing. So, I have no idea what kind of buyer I am dealing with.

I do know the buyers don't really want to haul their stuff somewhere else if they don't need to. I have an idea what they want to pay. I also know they wanted/needed closing costs rolled into the loan. I also have to pay Kirby. Those are my costs. However, I want this to go through.

So, we listened to what they wanted. Countered at our our price. We offered up a home warranty. We also offered a termite bond (which I renew every year anyway). I will pay their closing costs, but that will include an appraisal. Also, I am not making repairs. The house was in good shape when they moved in. If they decide they have something they want fixed, they could have asked long before now.

I am also willing to let them use their security deposit as earnest money, with the understanding if the sale doesn't go through, the money is returned to Kirby as a security deposit. And, they must keep their rent current. So, no skipping August's rent payment, unless they are closing by August 1 (which I doubt). I didn't say I wouldn't prorate the rent--but I will if they ask. I am letting them figure that part out.

My only two non-negotiable points are that Kirby must be present for the appraisal. I don't want the tenants bending the appraiser's ear, telling them about defects that might cause the appraisal to come in lower. And, the closing must go through Attorney Jon.


What I don't know is how serious they are. Were they just throwing out the concept to see if we would bite? Do they really want to buy? Are we off so much from their bottom line and my bottom line that there is no room to breathe? When faced with the actual idea of committing money, are they going to balk and back down?

When I last spoke with Kirby on Friday, he said they were planning on getting back to him next week. I am hoping that is serious enough to accept our offer or send us a counter. And, hopefully if they send a counter-offer, it is realistic enough to move forward.