Nathan Gesner, Broker / Property Manager (American West Realty and Management)

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Rainmaker
2,558,090
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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!

Jan 22, 2017 07:26 AM
Rainmaker
1,482,458
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

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.

Jan 22, 2017 07:12 AM
Rainmaker
821,960
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.'

Jan 22, 2017 07:00 AM
Rainmaker
1,027,155
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

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. 

Jan 22, 2017 07:51 AM
Rainmaker
3,496,488
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

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.

Jan 23, 2017 04:04 AM
Rainmaker
577,995
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

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

 

Jan 22, 2017 09:28 AM
Rainer
149,806
Michael Thacker - Re/Max Real Estate Center - Louisville
Re/Max Real Estate Center - The Thacker Group - Louisville, KY
Your best friend who just happens to be a Realtor

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

Jan 22, 2017 09:17 AM
Rainmaker
775,792
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

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.

Jan 22, 2017 07:24 AM
Rainmaker
705,943
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

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?

Jan 22, 2017 07:20 AM
Rainmaker
3,485,006
Richard Weeks
Dallas, TX
REALTOR®, Broker

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

Jan 22, 2017 06:49 AM
Rainer
217,135
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

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.

Jan 22, 2017 06:47 AM
Rainmaker
3,059,964
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

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

Jan 22, 2017 10:28 AM
Rainer
97,766
Carol Wilson
Your $imple Home - Toronto, ON

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.

Jan 22, 2017 09:03 AM
Rainmaker
2,886,661
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

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.

Jan 22, 2017 08:21 AM
Rainmaker
443,820
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

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.

 

Jan 22, 2017 07:38 AM
Ambassador
4,253,293
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

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

Jan 22, 2017 07:34 AM
Rainmaker
1,320,172
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

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

No I would not write it.

Jan 22, 2017 07:14 AM
Rainmaker
1,051,519
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

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.

Jan 22, 2017 06:55 AM
Rainmaker
1,354,705
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I would talk sense into them.

Jan 29, 2017 05:25 AM
Ambassador
4,306,997
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

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

Jan 22, 2017 11:26 PM
Rainmaker
5,390,888
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

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

Jan 22, 2017 01:20 PM
Rainmaker
426,038
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

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.

Jan 22, 2017 12:24 PM
Rainmaker
881,809
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

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

Jan 22, 2017 12:18 PM
Ambassador
2,469,002
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Refer them out.

Jan 22, 2017 12:15 PM
Rainmaker
812,714
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

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.

Jan 22, 2017 11:54 AM
Rainmaker
864,056
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

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.

Jan 22, 2017 10:48 AM
Rainmaker
3,678,169
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

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.  

Jan 22, 2017 10:42 AM
Rainmaker
1,306,892
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Jan 22, 2017 10:30 AM
Rainmaker
577,189
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

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..

Jan 22, 2017 09:44 AM
Rainmaker
1,619,030
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

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.

Jan 22, 2017 09:29 AM
Rainmaker
3,478,542
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

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.

 

Jan 22, 2017 09:25 AM
Rainmaker
1,411,527
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

Jan 22, 2017 09:20 AM
Rainmaker
4,923,680
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Nathan,

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

Jan 22, 2017 09:09 AM
Rainmaker
790,366
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

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

Jan 22, 2017 08:53 AM
Rainmaker
3,183,806
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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

Jan 22, 2017 08:48 AM
Ambassador
1,706,708
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

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.

Jan 22, 2017 08:22 AM
Rainmaker
3,960,905
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

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.

Jan 22, 2017 08:15 AM
Rainmaker
3,638,540
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

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!

Jan 22, 2017 08:02 AM
Rainmaker
5,888,159
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Explain the risks and submit their offer.

Jan 22, 2017 07:58 AM
Rainmaker
1,092,216
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 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.

 

Jan 22, 2017 07:52 AM
Rainer
352,726
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

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.  

Jan 22, 2017 07:48 AM
Rainmaker
4,384,918
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

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.

Jan 24, 2017 12:19 PM
Rainmaker
4,432,941
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It sounds like the prospect does not want to buy. 

Jan 24, 2017 04:31 AM
Ambassador
2,209,980
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

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. 

Jan 23, 2017 06:30 PM
Rainmaker
4,798,831
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

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

Jan 23, 2017 07:10 AM
Rainmaker
686,509
Paul Antonelli
Antonelli Realty - Saint Cloud, FL
Broker Owner; Antonelli Realty

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

Jan 23, 2017 04:47 AM
Rainmaker
3,066,356
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

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

Jan 23, 2017 04:39 AM
Rainmaker
1,506,571
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

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

Jan 22, 2017 09:32 PM
Rainmaker
3,404,372
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

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

Jan 22, 2017 08:49 PM
Rainmaker
3,985,581
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

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

Jan 22, 2017 05:18 PM
Rainmaker
589,829
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

Dump the client

Jan 22, 2017 04:30 PM
Ambassador
4,760,049
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

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

Jan 22, 2017 04:10 PM
Rainmaker
1,049,777
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

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.

Jan 22, 2017 02:14 PM
Rainmaker
142,596
Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

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.

Jan 22, 2017 01:35 PM
Ambassador
3,985,307
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

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.

Jan 22, 2017 12:30 PM