Confessions From A Former Buyers Agent In A Buyers Market

Confessions From A Former Buyers Agent In A Buyers Market

In 2006, 80% of Buyers were approved from the sub-prime mortgages. The sub-prime Buyers shopped the extremely over saturated market of homes as though it was their way to purchase or the highway for Sellers that refused their offers. Sellers weren’t aware of the next trend for most Buyers writing butchered offers on their homes.

What is a butchered offer? A buyer offering at least 10k less, down payment, closing costs, etc,. Even a 100% financed loan would have 6% Seller concessions, repairs, etc,.

Yes I confess, the worse offers with my Clients’ were influenced by me. I was the leader with most of the written offers for my Clients’ best interests. Written offers with my specialized knowledge would make the Sellers head spin! Hey, that was my duty under law to represent my clients’ best interest which was to get them the best deal possible. Plus it was my influence during the showings to draw up the craziest offers known to mankind. Depending on the numbers and Sellers motivation, we would offer 10k+ under asking, 6% Seller concessions and also have their entertainment system, antiques, tools, appliances, furniture, corvette, and anything else appealing to the Buyers. What? You like the cute doggy? Good, we will put the cute doggy in the contract too.

Why would I do such a thing? Simple, it’s called ‘Psychology’. I would prefer to call it ‘Psychological Warfare on the Sellers’. While the Sellers are busy crossing out all their personal property, they are busy forgetting about the offered price. Now, they will counter at a higher price but not as much as they would have if we didn’t ad most of their personal property. Then again, some of the Sellers left their personal property in the contract because they didn’t want to move it or deal with it. So, you never know, each deal is different.

Although, there were so many properties for sale, Buyers were getting too picky with their choices. They would love everything about the house EXCEPT what color the room was painted or a partially finished basement had paneling that wasn’t likable, etc. So the Buyers would simply move on to the next house. For me, it was getting too ridiculous. Right down to negotiating an awesome sweet deal that the Buyer eventually refused because the Sellers wouldn’t fix the list of items that can be easily repaired with a screwdriver and a wrench.

One of my former Clients told me to write an offer at a certain price. I utilized my specialized knowledge then I suggested a lower price which made their head spin! The written offer also made the Listing Agent and the Sellers head spin! The Listing Agent immediately told me he didn’t think the Seller will accept the price. The heated negotiations began. The problem wasn’t the offered price. It was who cleans out the house. In the end, we got the offered price and the Listing Agent was amazed by what their Seller accepted!

I don’t care who you are in Real Estate, to be the best negotiator is to leave the emotions out. This isn’t personal, this is business, period.

There is more to an awesome deal than just writing an offer and that is for another Blog!