It's Not The Offer Starting Price That Matters, It's The ENDING Price!

Good post from The Liz Spear Team. This post describes how it is not the offer price but the ending price that matters. Great point to make to your clients when listing their homes. Your first offer is almost always your best offer and SURE, it's going to be low, It's a Buyers Market (in most areas).  They are certainly going to try and get the home for as little as they can. HOWEVER, it does not always mean that they are not negotiable.  Keep an open mind! You'll go farther in the sale of your home. Thanks Liz.

runningIt's Not The Offer Starting Price That Matters, It's The ENDING Price! 

Some home negotiations are a sprint, others a marathon.

Some offers start close to list price, others are what is commonly called low ball.

As participants in this home buying and selling dance, there's probably as many different strategies as there are homes on the market.  If we do this, what will they do?  How about this tactic instead?  What's Plan B, C, & D??

Can you keep it rational, or do you get spun up and let an emotional reaction get in the way of selling your home? 

Now part of our REALTOR® job is trying to keep everyone on an even keel, to continue the negotiations to the point one side or the other decides not to proceed.....but we want that discontinuation to be because we couldn't achieve that meeting of the minds on price and terms, NOT because one side or the other is furious with the other!

And the most likely source of emotional fuel has to be that initial offer price, that supposed "low ball" price. 

Now there's a few things to consider as a home seller:

  • They LIKE your home enough to write an offer!
  • They LIKE your home enough to write an offer!
  • They LIKE your home enough to write an offer!

Get the point?  There's LOTS of homes on the market and they chose YOURS to TRY to BUY! 

Now they can START their offer at whatever price they want, we ONLY care about getting them to an acceptable END price!  While agitating, they can take it to that acceptable END price in one move, or twenty small bumps!  They want to take their time?  Fine with us, because while they're dickering around, another offer just may come in that trumps their gamesmanship! Been there, done that, closed the deal!

Not every offer will succeed.  Sometimes the buyers need to go find out a bit more about the market before fully realizing they're going to need to do better to get what they want.  It's critical that we don't burn any bridges during the initial negotiations so they feel comfortable coming back.  We've twice had the same buyer offer THREE times to one of our listings before finally submitting an offer that got the job done!

So remember, keep the end point in mind with EVERY offer.  Don't reject outright, counter on your terms.  Keep communication open.  Keep it civil.  Keep the bridge open and unburned!

It's not the starting line that matters, it's the FINISH LINE!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

The Liz Spear Team
Elizabeth & William Spear
RE/MAX Elite
Two locations: Lebanon & Mason, OH
Office direct: 513-248-3660
  Liz direct:  513-265-3004
Bill direct: 513-520-5305 Fax: 866-302-8418

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Comment balloon 4 commentsBobbie Smith • July 25 2011 08:40AM


Hi Bobbie,  Very good point on this re blog.  More people shopuld explain this to their clients.  Have a great day!

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) over 6 years ago

Bobbie, Thanks for the reblog!  We've seen it go both ways....sometimes the buyer just has to try for that deal, but will come WAY up.  Other times, the STEAL OF A DEAL is more important than the actual house, just a commodity and they'll keep fishing until someone bites.  We'll work with both types of offer and see what happens.

Posted by Liz and Bill Spear, RE/MAX Elite Warren County OH (Cincinnati/Dayton) (RE/MAX Elite 513.520.5305 over 6 years ago

This is good sound advice. It is sometimes not so easy to good through to the Seller.

Posted by Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities, Surprise AZ real estate Phoenix West Valley (Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az ) over 6 years ago

Will, I agree. If you make them aware right from the start, it makes your job easier when the offer comes in.

Hi Liz, So true. It can go either way. Like the fishing analogy. Thanks.

Hi Jim, Yes, agree on that. Thanks.

Posted by Bobbie Smith, 570-242-1891 over 6 years ago