We all would like to be in control of our clients, right? Wrong. Over the course of my online musings I've seen many a time where the agent is saying they "tell" the other agent what they would do in a situation such as putting in an offer, accepting an offer and so forth. They blatantly say they tell the other agent this, that and the other.
What happened to the seller or buyer and their option to make the decision?
We ‘guide' and ‘advise' our clients while negotiating a contract. The seller's agent lets the seller know what they are facing while negotiating a contract. Their options are:
- Counter an offer with terms (Price? Closing date? Inclusions?)
- Accept the offer (A very clean offer that needs no adjustments....the sellers love these!)
- Reject the offer (Low Ball offer, contingency to sell other property or what have you)
- Ignore the offer (Too insulting to even respond to)
Anyone that tells me that the seller ‘should' counter no matter if it's a low ball or whatever their reasoning is.... is telling me that they do not advise their client of their options and a course of action...and the option of making the decision themselves.
The buyer's agent lets the buyer know what they are facing while negotiating a contract:
- Comparables in the neighborhood, complex etc.
- Consequences for low balling....like....losing the home they really love
- Staying within their means and not offering higher than what they are preapproved for.
- And of course other known factors such as the maintenance fees, special assessments and so forth.
Any agent that tells their client to low ball so they can test if the seller will accept it should be ________ (you fill in the blanks). If the buyer really loves the place and doesn't want to lose it ...there won't be room for bargaining.
We are working for the best interests of our clients.
......But remember, the client is ultimately the decision maker!
.......And we are just the messengers.
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2012 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
All rights reserved.
Well said!
I think in many instances, at least in my experience, the buyer has told the agent what to offer and the agent is encouraging the listing agent to go for the counter. I won't make an insulting offer in any way shape or form if I don't think the buyer is ever going to go up. That is the equivalent of taking a grossly over-priced listing.
Sally
Thanks for sharing your thoughts in an outstanding post. I believe our role is to advice the customer.
Good luck and success.
Lou Ludwig
Sally - our role is, or should be, truly consultative, even though we might like to control the outcome. There are, of course, consequences, implications and atlernatives tat need to be pointed out so the client can make an informed decision. Not always easily done.
Jeff
Sally, I find myself bristling inside over the way this is written. A seller wants to sell the property for the most they can get for it. The buyer wants to buy the property for the least they can get it for. Some people really like the negotiation, they like the back and forth, the posturing. We meet each other simply at a starting point.
I have seen extremely emotional responses from sellers and buyers during negotiations. It is always prudent to counter on the terms not acceptable, and to remove the emotion and defensive posture from the Realtors. It is not personal to us, it is business. We are a voice of experience and extreme knowledge.
You wrote:
"Anyone that tells me that the seller ‘should' counter no matter if it's a low ball or whatever their reasoning is.... is telling me that they do not advise their client of their options and a course of action...and the option of making the decision themselves."
This in my opinion is a WRONG ASSUMPTION! It does not reflect the Realtor has not advised the client of their options or course of action. It more likely reflects their many experiences of being in this same place in other deals, and seeing the contract ratified on terms agreeable to all principals to the contract.
Some "Great Advice" Sally and thanks for the read ...
VB ;-)
Carol: It is NOT an assumption ....when someone tells me my seller has to counter... no matter what. It is up to seller to accept, reject, counter or ignore. So what was the wrong assumption? The fact is that they tell another that they have to. You may have assumed what tone I was taking? Bottom line is that my point is just that we can give all the advice we want but it is ultimately up to the buyer or seller what they would like to do...and it IS their decision....not ours!
Jeff: Whew! Working my way back up the comments here. I was starting to think I wrote this blindly. We do the best we can to give our clients the best possible options to negotiating terms of a contract. It is ultimately their decision what they do with it. I can't MAKE anyone do anything.
We are not allowed to ignore a contract in our state. It must be accepted, rejected or countered. Although many REO get ignored :-/
Anyhoo, I had a divorce listing back in 2008 right before our market hit the serious freefall. It had equity and we were getting plenty of lowballs. With tools like docusign, I believe it isn't difficult to counter - even at full price. It took them way longer to show the property and write the offer. It takes us 5 minutes to counter back at full price. To me this is the ULTIMATE way to say "sorry, try again."
My seller was NOT amused but I talked him in to this strategy and it WORKED with a lowball offer. We had a meeting of the minds, a court date to release the lis pendens and two months after the lowball offer was written we closed for 50K higher than the lowball. Just in time for the value of that property to slide down!
On the flip side, I do choose to NOT work with buyers who lowball on a continual basis. It isn't worth the time to go fishing in a barren pond.
Very true Sally. I go through my entire presentation with Buyers and Sellers... but at the end of the day, they make the decision that I put together. If I do my job right, they are not suprised when we get a counter. We have to find the Win-Win Situation for both parties.
Sally... not an agent, as you know... ;o) But an excellent simple message here... and I always wondered that also... did anyone ever forget to tell the buyers or sellers? ;o) yes, just the messengers..
Standing in the other person's shoes can help-I try to convey that to calmthe emotions. Nice post, Sally,
Renee: It'd be one less problem if that were the case in every state :) Bottom line...it allows the seller ....and buyer...to make their own decisions. Just as a seller...if the buyer doesn't like the counter they can accept, reject, counter back the counter or ignore. It isn't difficult for any of us to write up a two minute counter...... the point is that we leave the decisions to the client....which is as it should be.
Patricia: Yes indeed!!
Jeff: It was a simple message ....wasn't it? :)
Barbara: And with that suggestion...we still leave it in our clients hands to make the decision. Good one!
Nice post Sally. There is a fine line between giving advice and making decisions.
Good morning Sally. Good read and well put...
Sally. Of course we all know that the way we present things to our customer/clients usually guides them to their decisions. It's always their decision to make but as their broker it is my job to make sure they don't make a bad decision. I will go so far as to argue with my customer/clients if I feel they are making a bad decision.
They are hiring me to get them to a successful closing. I take this very serious.
My seller's do not always counter.
Agreed about making decisions on their behalf. I also agree w/ BB on the way we present things to guide them through the decision making process.
I can only give my clients my views on the situation. Of course in the end..it's the clients decision...they own the house or they are the ones buying the house with their money. No use arguing about it.
Randy....simply...answered.
BB: Yup...that's the whole thing. We present to them...not tell them. If they are making a bad decision it is up to us to let them know. Bottom line...it'll be their decision in the end...no matter which way they go.
Hey Neal... I won't argue :)
Sally,
I agree; although there are ALL kinds of clients I would prefer to "empower" our clients with excellent information upon which THEY can make a decision.
Suggested,
Steve
Thanks Steve.... empowering is key to a successful sale. Bottom line is that our biggest asset is listening to what our clients needs are....give them options and advise and let them make their decision. There are consequences for all actions.
We tell people what we know.....not what we think :)
Sally - I like the option of filling in the blank for a low ball offer! Great advice.
One thing I always tell my buyer clients is that, yes Mr. and Mrs. Buyer I understand that you have heard over and over again on the news that we are in a buyer's market. However, when viewing homes that are in great condition, in prime locations and priced aggressively well, we are actually more in a seller's market when dealing with these particular homes.
I think it's important to remind our clients that the sellers are seeing the same market statistics that they are seeing and the market statistics are facts that don't lie. Therefore it is important to submit a fair offer as oppose to a low ball.
As much as I'd love to fill in that _______, I won't. If buyers, or sellers, are serious, messing around for a few bucks could potentially blow up the entire deal. Buyers could move on, sellers could entertain new offer(s), etc. If you must have the house, or sell the house, be serious. And listen to your agent, at least a little.
Celeste,
Renee (Post #8) is speaking for me on this one. When we get a bad offer, we love to counter at full price. It sends the correct message, now have our clients ever directed us to communicate with that specific buyer/agent again. You bet! If you upset or offend some people they will indeed never speak with you again.
We need to take the emotion out of it and proceed as professionals on both sides of the table.
-Brent
I so agree with you. We are here to advise and that includes all the options available to our clients, not the other side's agents advise.
Well said, Sally. My favorite line in this blog is fill in the blank.): They way we present an offer to our clients helps them to make a wise decision. Great Job!!
Wow, if only we could take your advice and apply it to all the REO's agents out there. For a while out here in Southern CA, it wasn't the highest and best offer the agent had the seller sign... it was their own! Ahhh, the double-end! ;-)
Sally I agree, our job is to provide our clients with the information that they will need to make their decision, and not try to make the decision for them.
Thanks George...as usual...you read the whole post :) Sometimes I wonder when there are so many comments directed towards low ball offers etc.
Folks, the whole point was as George said....we provide the information they will need to make their decision....not make it for them.
Lizette and Dawn...Thanks for reading and seeing the 'point'. :)
Brent: "We" love to counter is what you said. This is my whole point...it is the seller that counters back at full price...per your suggestion. So ultimately it is your suggestions and direction that the seller makes their decision.
I know, I know...let's get deep and technical here. There is a direct point I'm making here. And making a decision for our clients is bound to get us where? Answers?
Sally the agents should not control their clients but REPRESENT them. Some agents use strong arm and bullying tactics and they think they know everything.
Gary...ohhh I like that. We represent indeed :)
Sally - I was shocked when I attended a meeting recently and actually heard an agent say that if she considers the offer too low, she doesn't even present it, she simply refuses it. She was reminded by the speaker that we MUST present all offers! All I could think was HOW DID SHE REMAIN IN BUSINESS AND WHAT SCHOOL DID SHE ATTEND??? That was the craziest thing I ever heard!
Sally, great advise. The client is the decision maker....always!
Sis - Still wise after all these years, I see. I can't think of a better messenger to have than you:)
Hugs lil bro :)