50% is antagonistic. Why not offer full price and curse his mother out? Same results if this method is used. Act like a serious buyer or take your act & go!

Talk sense into them by explaining the risks of such a strategy.  If you do make such an offer... you'd better have darn good justification for doing it or you and the buyer will both look like fools.  

Heed what Annette Lawrence , Palm Harbor, FL 727-420-4041 says.  If this is the kind of buyer you have, you may be wasting your precious time when you could be working with "real" buyers.  Don't be the buyers little puppet... or  "chump", as Annette put it.

50% below market.

We know that boat left the dock 7 years ago.

However, I would inquire about their rationale for arriving that that number and the strategy they embrace. It just might make sense.

I need to determine if this is what MY future looks like. You know what I mean, writing up endless offers because the buyer views agents as chumps who will do all the work without compensation.

I would suggest a verbal offer and allow the listing agent to say, 'Put it in writing.' Translated it means, negotiation is possible AND I don't mind having my time wasted for the benefit of being able to say, "I got you an offer!"

What happens tomorrow is directly related to 'how I see my future.'

Nothing educates a buyer faster or more effectively than the hard slap of NO RESPONSE, no counter, nothing.  After that experience, though, if they really are not serious (multiple offers are not uncommon) about buying a house, we have "the talk."  Quite often, they just "want to try," so we try.  Once. 

If you can't talk sense into them and they still insist on writing a stupid offer, you write it... you have to follow all lawful instructions from your client and there's nothing unlawful about a low offer. After they get a big fat rejection maybe they will get real. I've had clients who insisted on too low an offer and lost a few houses. After one or two losses, they always got real. I've received overly low offers on listings and we've told those buyers to go away.... in fact in one case, we told that buyer to go away three times. By the fourth offer he got real and we cut a deal. I don't take this personally.

First of all the time for a reality talk is not prior to an offer, but rather prior to showing anything.

I currently have a buyer who has looked for a couple of years with many other agents.  I got her under contract on the 5th property.  Why? because up front I told her she was expecting too much and gave her a reality check.

Funny thing...in two years of looking, not a single agent told her that.  They all took her out and then dropped her, because she was unrealistic.  She thanked me profusely for telling her the truth.

Would I write an offer for 50% below market?  No, and I have not been asked to.

Eve

In this case I have to agree with Richie Alan Naggar .

First the latter, then the former, whatever it is - 'tis our job, but don't preface it with ..."I know it's a low offer"... Explain risks to buyer e.g. if they get serious, they may not be taken seriously.

That being what you said - I would tell them to go suck air. Not a serious 'customer'. What a waste of time. Did you ask them if they have any money?

In the market we are in I would set some expectations, and that they may end up paying over list price.

Don't write it up and don't even bother to talk sense into them. Just explain their offer is an insult to the seller.

Nathan Gesner Is this buyer an investor? You need the discussed it with your broker. Good luck with this buyer.

Show me your mortgage pre-approval before I go putting out my neck on this one...and if you don't have it, go get it.  Show me YOUR money first.

Then we need to talk, as others have said.

Like Jeff Dowler - I would have a face to face discussion with the buyer. If the buyer is ONLY in the market for "deals 50 cents on the dollar" then I would find something else to do with my time.

I give clients like this one free pass.  I tell them what will happen (no counter at all, or full price back at us) and then write the offer and let it happen.   Once should be enough for them to understand the futility of a lowball offer in a market where the average sold price is 96-98% of asking.

We would certainly have a heart to heart discussion about the issues associated with doing this first. What happens next depends.

I had a client like that and he has moved onto another agent.

No I would not write it.

An offer like that would probably not get them a 2nd chance to submit another. I suggest you find out how well you can give a real estate education to this "Buyer" before pursuing this action if they truly want this home.

I would talk sense into them.

Nathan Gesner - if I have buyer's agency agreement - yes. And then I make that as my last offer with these buyers.

as a buyer's agent, you should give proper guidance to that buyer, but the final decision is the buyer's...

50% below market offer in DFW means time wasted. I think your buyer isn't serious and will buy only if he can get a home dirt cheap.  I would try to talk sense.

LOL 50%? Sounds like you need a new client!

  Refer them out.

In a market where list to sale ratios are all over the place, we can do it once and when they fail miserably and lose out, they'll learn a nice lesson. If they insist on trying to buy champagne with beer money, they can go it alone.

I would try to explain to them why I refuse to write an offer that is 50% less.. If they refuse to up on their offer, I kindly decline to work with them. I will try to explain that theirs and the seller's time are valuable and I have no intention of wasting anyone's time.

50%???   I can come up with many ways to waste time on my own and have a lot more fun. Unless there is some type of sound reasoning behind this "strategy" it's unlikely this buyer are the best match for a business relationship.  

Talk sense.  No seller, unless SUPER DESPERATE would even consider it.  If you write too many of those offers you'll become known as a lowballer agent and you will have a super hard time getting work done.  There are a few out here with that stigma and no one takes them seriously.

I would not write up an offer like that.. submitting an offer like that will only get tossed in the trash... Sellers would be so insulted they would not even give a counter offer, so it would be a waste of time.. your time in particular. Move on to a serious buyer..

I tell him that his negotiation style does not fit the current market. Ask him when he thought it did? Don't remember it ever being that much 'off'. I tell him what the norm for the area is which is around 95-97% of list.

We are the messagers for the client, but I try to talk  sense into them and explain we will not even get a clounter back.

Nathan Gesner This is not a serious buyer. Seller will probably throw the offer in the trash.

My seller once received an offer like this. Under my advisement I always tell a seller to never reject an offer, but counter. My seller countered at a realistic price. The buyer countered and came back and added one dollar to their original offer. Under advisement, the seller threw it in the trash.

Nathan,

This type of buyer is better referred to someone else.  A

Buyer is probably not serious. If buyer planned on continuing with that strategy, i wouldn't continue working with them after that offer.

I would talk some sense into them, especially in this market. In a buyers market, i may give it a try, but no way today

I will talk to them and I can't remember the last time this has happened but you must write it at least in my state.

Is this a real buyer? Have you explained the market to them? May be your wasting your time..you need to be able to accurately communicate your market place and the buyer needs to listen to reality.

Reality is what reality is! The facts are the facts! In a hot market, I might suggest they are wasting my time and part ways!

Explain the risks and submit their offer.

 Showing them the SOLD/ASKING avg price ratio and gave them the sold data after escrow.

In my case I did it first year one chance, they all disappeared.  Our area has alwayts been over 102%.   If they are not serious today I ask them to find another realtor.... If they want to come back I laid out the rules.

I don't have that time to waste with buyers who obviously have no intention of being realistic.  After we go over the comps and they still want to write a ridiculously low offer I'm done with them.  Can't talk sense into people who think this way.  

I probably would never have even shown them property as my screening process for buyers eliminates these types before I schedule even one appointment.  I hope you didn't get a buyer like this and are just asking a what if question.  

Sounds like you have an unreasonable buyer on your hands.    Depending on your relationship, would sit down and have a serious conversation about the market.

It sounds like the prospect does not want to buy. 

What is the buyer's motivation for doing this? That's insulting to the seller in most cases. When I have buyers that want to make an unreasonable offer, I ask them to put themselves in the seller's position. Most people really think when I put it that way. 

In CO we have to present all offers. Is this an agent you can do a verbal with? That's where I would start. 

Try to talk sense into them.  And, potentially fire them if this is going to be their modus operandi.

sorry Im not the right agent for you, if you insist.

Annette Lawrence , Palm Harbor, FL 727-420-4041 nailed this one!

Most probably you'll waste your time writing such low offer. 

I am a trusted adviser, clearly I have not reached that level with this buyer...

First talk sense to them but I will write it up if I must.  After 2 low ball offers I add an admin fee and will up that fee after 2 more that are not accepted

Dump the client

Some folks are more concerned with a bargain than a particular home, make sure you and the buyer understand the motives and consequences.

NEVER!

I show the the ratio of sold to asking price % for that neighborhood and that's the maximum deduction typically, unless it's a rehab or fixer property. 50%? I'd refer them to my enemy.

I would not write it up and explain that this is an insult to the seller.  If they insist anyway, it's time for them to work with someone else.

I try to talk some sense into the buyer, show data and caution that it will likely alienate the seller. If the buyer really wants the house this will probably slam the door shut on any hope of that happening.