During the past 15 months I’ve presented some very low offers on behalf of my clients to sellers’ agents and they were all rejected. I’m not uncomfortable with presenting any offer – that’s my job – but it’s been an interesting learning experience because offers that were rejected out-of-hand last spring now seem to be too high. I’m currently working with another handful of buyers and may soon be repeating that process. Will low bids be accepted now? Probably not.
Here’s the problem, as I see it: I can tell a buyer, with a reasonable degree of certainty but with occasional huge error, what a house is worth today. In the past, that was usually enough to help a sale go thorugh because we all “knew” that the house would be worth at least as much, if not more, a year later. Not now, so while I can say that a house is worth, say, $4.5 million, give or take $250,000 today, I have no idea what its value will be six months from now. Nor can anyone else.
So my buyers, at least, aren’t willing to pay what a house is presently worth – they want a protective cushion that will shield them from a further precipitous decline. I don’t blame them and I’d want the same thing but it’s tough on sellers, especially those who have already pared their price down from an extrapolation up from 2005 prices to a figure that reflects today’s market. They feel as though they’ve done their part, and balk when more is demanded of them. Stalemate.
But for sellers, if you do receive a low-ball offer from your agent, don’t bite her head off or get angry at the offeror. Haven’t you been saying, “just bring me an offer”? Well, someone just has.