Ever taken a lower offer to a hardware store who’ll beat it by 10%?

June 30, 2020

Here’s the question Sellers stuck in the Swamp-of-Nothingness ask: “Why can’t you just bring me an offer?!”

And it’s a fair question to ask. But let’s cut straight to the chase. An anxious Seller that expects their Agent to be equally anxious is losing all negotiating strength because they’re forcing the Agent to beg for an offer. That almost guarantees under-selling. A good agent understands that…

  • It’s an emotional time. The excitement of selling and moving on with dreams has turned to disappointment, and maybe resentment towards the Agent and Buyers in general. Bloody-minded determination eventually translates to capitulation…either not selling or under-selling it.

At Caloundra City Realty, we encourage Sellers to never say “I’m not selling unless I can get my price!” Instead, we’d rather the seller give us this instruction:

“I’m trusting you to get us the highest price possible, and if it’s enough, we’ll sell. Now get to work please!”.  

What! A Real Estate agent asking for this much trust!! Sounds corny, but this is truly how we think about things here at Caloundra City Realty.

At the coal face, here are some Buyer-scenarios…

  • The experienced smarty-pants Buyer: (usually a flipper) – they’re not afraid of chucking out low offers all over the place, knowing that eventually, a desperate seller and/ or a bad Agent will bite.

 

  • The nice folks that just want a home to love for a fair price –
    • These folks aren’t used to bartering. They’ve never taken a lower offer to a hardware store who’ll beat it by 10%, or said I’ll give you $250 instead of $300 when buying a nice jacket.
    • These folks must first buy the place emotionally but won’t invest in that emotional buy-in unless they think they have a chance of getting it. After all, who likes disappointment?
    • In Caloundra, there’s about 500 houses and 600 units for sale at any one time. Buyers have choice!

 

  • The Heart Buyer – yep, they’re emotional about something. The added value is worth it for some reason we can never anticipate. These folks come out very early in marketing.

 

It’s true that

  • in a strongly rising bull market, a stuck Seller gets un-stuck… eventually.. as the market rises and might get their price (which might now be less than what it’s worth because of the Lemon Tag)
  • In a balanced market, the pricing margins have to be nuanced and well managed by the Agent.
  • In a Buyers market, it’s like catching knives. The slower to act, the lower the achieved sale price. Or, withdraw and wait for another Real Estate cycle (if you’re young enough!)

 

So there you have it. It’s all about the money. Your money. How we get the highest price possible is summarised here, and here.

 

 

 

Caloundra City Realty

Article by Caloundra City Realty

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