Love When This Happens

1 Grove Lane, asked $3,445,000, got $3,290,000.

1 Grove Lane, asked $3,445,000, got $3,290,000.

This is a fairly common scenario most listing brokers can identify with: You put a property on the market “priced to sell”, yet along comes a buyer who low-balls anyway.

Being a diligent broker, you naturally then provide the buyer’s broker with copies of all the recent ¬†comparable sales from which your thoughtfully calculated asking price was derived. But the buyers, maybe even their broker, say nope, you’re off by hundreds of thousands. They re-visit the house, bring their builder, their architect, their father-in-law, everyone agrees, it’s overpriced. They even quote Chris Fountain! Finally, they raise their bid a small amount, but that’s it, “take it or leave it, you’d be a fool not to take this offer”.

You and your sellers say no, and they go away. Days go by, maybe a month, more showings occur, but no offers. A hint of doubt starts to build inside you. You begin to wonder if maybe those damn low-ballers were right! Could it be? But you’ve got the comps! Your price is justified, dammit!

Then, salvation. A new buyer comes along. They love the house, they get it. Their opening bid is higher than the last folk’s “highest and best”. As you’re negotiating, still another buyer shows up, and they get it, too. So you make the deal easily, maybe no bidding war, but the existence of a competing bid adds the useful urgency that keeps deals moving along.

All that happened at 1 Grove Lane, and it happened at loads of other properties in this year’s weather-delayed Spring market. So what’s the moral of the story? Do you hold out for that “right buyer”? I’d say yes, if you’re really confident of your asking price, and you’ve had, say, 10 or fewer showings. But 20 showings? 30? And nothing but low offers or worse, no offers? Then the above scenario is not going to happen. Lower the [gosh-darned] price!

 

5 thoughts on “Love When This Happens

  1. Dear Gideon,
    As much as I appreciate this house when I drive by, didn’t you sell it a few years ago for 3.5, and now the owners far less? After spending perhaps a million renovating? I can see why you say: I “love when this happens.” If I am wrong and the sellers are as happy as you, please let us know…..they should weigh in….

    Editor’s Note:
    One almost has to admire the above poison-pen example… Note the soft beginning, “Dear Gideon”, followed by heartfelt sympathy for my client’s welfare, then…the knife is slipped in. Quite skillful. Dude, with all that writing talent, start your own &%#@-ing blog!

  2. Gorgeous home for those who appreciate the dark rich patina of the interior woodwork. Had I bought it, I would have painted all the interior woodwork bright white.

    Signed,
    Benjie Moore
    Painter

Comment (anonymously, if you wish) On This Post....

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s