I wouldn’t discourage my clients from making an offer. I usually focus on making sure they understand the pros and cons first, then what the probabilities are based on the situation.

The letter accompanying the offer can go a long way to addressing some of the emotions a seller might feel. (After all, no one likes to feel like they’re being threatened. And you can’t bargain with someone who’s dug in their heels.)

Carefully phrasing the letter and providing rational interpretations of market data can start a conversation. Sometimes sellers don’t react as quickly to market conditions as the market does, so educating the consumer (in this case the seller) becomes the critical part of making the offer.

Cheers,
Steve

This is excellently explained. Buyers know that the process of buying is for them emotional, and sometimes they forget that it can also be emotional for the seller.

Make the seller angry, offend the seller with a really low offer and either the counter offer you get will be really high or you won’t get one at all. The offer needs to be “an invitation to do business” and needs to come across that way and not as an insult.

Once a seller of mine got a really bad offer. What makes an offer bad? 10% off list is usually perceived as lowball (sometimes more than 5% is too, depends). Anyway, not only was this offer 20% off list, the buyer outrageously asked for my seller to carry the loan - not offered in the mls - AND at a below market rate!

Taking a photocopy of the offer, she tore it in quarters.

And then she took her home off the market and leased it out.

Buyers sometimes say, “what’s the harm” in writing a low offer. Well, it upsets people - and sometimes much more than they know if the circumstances around the sale are emotionally charged. It’s a business transaction, yes, but it’s not a sterilized one without a gut impact.

You are really right to educate your buyers that’s it’s not always about the money.

Great piece!