3,986,258
I have a policy for myself. After the 3rd low ball I charge $500 for each new offer. AND they have to sign a representation contract which I WILL enforce. I have two investors that have bought into this with me.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
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S. Leanne Paynter ☼ Br...
Davie, FL
443,220
It depends upon whether the buyers 'get it' or not or if they keep writing unrealistic offers.
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John McCormack, CRS
Albuquerque, NM
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Brad Rachielles
Upland, CA
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Praful Thakkar
Andover, MA
1,139,819
If they keep doing low ball offers I cut them loose. They have to be realistic or they are not a real buyer.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
306,514
Praful,
I coach my clients so that they know what the market value of a property should be. If they want to go for a competitive price.... we'll talk. There has to be solid logic BEYOND the concept that they saw that tactic on TV. If they insist on doing a frivolous offer, I'm sure that they will find another REALTOR(R) to handle it. Frivolous offers = 0 : Unsuccessful very competitively low offers against my better recommendation= 1 : After that, if they are not taking my advice, either they are just gaming or I have not successfully trained them on how the market works. Time for real soul searching.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
45,957
I wrote offers for a particular buyer for 3 different properties and every time the buyer would offer significantly less than what the fair market value was and one time it was so low I was embarrassed to present it and the buyer asked that I specifically present it to the owner directly. That was a bad way to start off. Needless to say the seller rejected the offer without a counter.
Now i dont work to try to get this buyer to pull the trigger. If he comes around, fine, but I am not wasting my time.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
509,531
Generally speaking, I'd say probably a max of 3 times. If I saw an improvement with each offer (in other words, if they were closer to the list price or a reasonable price that could be expected for the property), I might allow a 4th time -- especially if I haven't invested too much time working with them. However, if I saw no improvement from the 1st to the 2nd offer, and thought the buyer was a tire-kicker... and didn't counter-offer with a higher amount, I probably would allow two offers (different properties). I don't think I've ever worked with a buyer that was that far off on more than the first offer. If they're serious, they learn from their first unreasonable offer.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
3,545,649
I've never had to say enough is enough! I guess I've been fortunate in that they eventually become more realistic.
I will say however, that a number of years ago, a "How to Steal a House" dog and pony show came to town. Those of us who had to deal with the aftermath took patience in re-educating those who had attended. I can remember driving away from one property, and hearing what the buyer wanted to offer (25% below list and market value). I simply said, if stealing homes was all that easy, every real estate professional would be doing it for themselves, and not bothering to show properties to you!
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
634,482
I've never had this happen. If a buyer was low-balling repeatedly and losing I'd let him get experience by making 2 or 3 offers and failing. Then I would say it is a waste of time!
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
5,583,278
this has never happened to me, but if it did, after the second time, I'm done with that buyer...
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
1,153,794
It would depend how far off base they are but generally I don't have a cutoff point. Technology allows us to spit out offers digitally in minutes so there's not even a cost of paper involved. How fast you can type a Seller's name and a new address are the only factors involved. I find that every time they lose out the gap begins to narrow with each offering.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
921,504
I inquire regarding their justification for their offer.
If it based on what they can afford (willing to spend), we change parameters and shop the segment they can afford.
If they are looking for the 87 to 1 chance of 'the' deal, I change the parameter of how we will continue working together.
If there exists no rationale that allows me to select the right real estate, I refer them to a newbie.
Usually, when pressed the 3rd time to reveal how they derived at their offer, the future patway is known.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
1,725,996
Each case is different. No general rule works.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
1,661,936
Three was the most and we made it work.
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John McCormack, CRS
Albuquerque, NM
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Praful Thakkar
Andover, MA
4,800,082
630,251
Just one is enough, Praful.
I do not like to work with unrealistic buyers in this hot market.