There are so many houses on the market. Let’s just low ball them and see what the Seller comes back with.
AGENT: [Insert Buyer’s name], that sounds like it would work, yet let’s say you are the seller. How would you react when someone gave you a really low offer on the home you love and have cared for?
BUYER: I’d probably be upset.
AGENT: You’re right. They do get upset and they react by wanting to come back full price, or reject the offer all together and they have bad feelings towards you as a buyer. Here’s an idea. Let’s offer them a price that makes them think. A price that makes them think about accepting the offer rather than countering it. If you’re the seller, what would you accept?
BUYER: I think I would come down some.
AGENT: Great, let’s write an offer that we think they would take and stand firm if necessary. That way you get a fair price and a great interest rate, which is what you want, right?
AGENT: [Insert Buyer’s name], let’s take a look at this as a money issue. To a seller $1,000 is $1,000. What I mean by that is when we ask the seller to give up $1,000 they reach into their pocket and take out $1,000. To a buyer $1,000 is $6 per month or 20 cents per day. You see, at 6% interest rate $1,000 off the price results in $6 off the monthly payment.
BUYER: Well I want $20,000 off so I can save $120 per month.
AGENT: $120 per month. I understand saving money is important. Let me ask you how long do you think you will live in the home?
BUYER: About 5 years.
AGENT: 5 Years. Then let’s do the math, [Insert Buyers’ name]. $20,000 divided by $120 = 166.66 months you would have to live in the house to make up the $20,000. Now that’s 13.88 years. Do we
really want to upset the seller since we might not be living there for more than 5 years?
BUYER: No, if you put it that way.
AGENT: Why don’t we offer a price that is a win/win for both parties? One that you feel like you received a great payment and the seller feels like they received a great price. After all you like the home and we haven’t seen anything else that you like as much. Right?
AGENT: Let’s write the offer that makes them accept it rather than counter it, and costs you more money in the long run. You do like the home don’t you?
AGENT: Let’s write a fair price for both parties. OK?
AGENT: [Insert Buyer’s name], I can certainly understand why you might take that approach and indeed it might work. Let me ask you this, are you going to try to buy just any house for your family or the best one?
BUYER: The best, and at a low ball price.
AGENT: So, best is your priority and if you can get it under value that would really make you happy? Right?
AGENT: Well, which should I do, look for the best properties that meet your family’s needs or for a real steal?
BUYER: Can’t you do both?
AGENT: Well, yes and no. See, no smart seller is going to just give their house away and unless they’re desperate they won’t advertise that you can steal it from them. Right?
AGENT: So, what we’ll do is search for the best home for you and then do our own quick market study to verify the value and then you can decide how to prepare your offer. Fair enough?
BUYER: Fair enough.
AGENT: [Insert Buyer’s name], if you had to pay fair value, in a down market for the home your family is going to live in and love, that would be alright, wouldn’t it?
AGENT: Good. You’re thinking like a smart buyer who loves his family.