Comments on: How To Get A Seller To Agree To A Much Lower Price

By: Christina Chan

Christina Chan — Mon, 22 Sep 2008 18:17:29 +0000

Thanks for the comment, diaph.

By: diaph

diaph — Mon, 22 Sep 2008 16:44:14 +0000

anyone reading this NY Times letter closely can see that it is ‘tongue in cheek’. write a letter like that to even a desperate seller, and he will slam the door in your face.

which is not to say that buyers are not empowered today. and unfortunately, agents continue to live in what ‘used to be’, unable to accept the fact that their hefty commissions of the past few years will be drastically reduced for a very long time. it all boils down to GREED.

By: rick

rick — Wed, 04 Jun 2008 05:19:40 +0000

The letter is not only condescending, as Krystal points out, but it’s a lecture too. Why would you want to lecture the seller on top of what you know is a weak offer? The terse statements cut like knives as the voice turns from being apologetic to accusatory. Funny thing is that I can agree and sympathize with the message but the delivery is poor and bitter.

I would convey the same message by saying (in a friendly tone) that the offer was written based on a balance of value and current conditions, and that it was a serious intent to purchase.

There’s alot of bitterness out there right now, and cutting people at the knees (or encouraging others to do it with poorly written letters) will not foster the kind of healing the market needs right now.

Just let these properties rot!

By: Marcy

Marcy — Tue, 03 Jun 2008 13:58:31 +0000

Data based letter, long-shot maybe, IF I needed to move soon. I say maybe because unless I’m offering cash, it’s my agent’s job to sell my offer…or not. I’ve never fallen so in love with a place that I felt the necessity to tap-dance in order to try and close the deal. Never come across a single place worth doing that for.

I see no need for letter writing to explain an offer, honestly. Patience can get you more than you’d hoped for in this market.

By: RED

RED — Tue, 03 Jun 2008 04:42:14 +0000

The only reason to write a letter, in a buyer’s or seller’s market, is to plead one’s personal case. It is a personal touch done to add to an overall package, to tell the seller something the numbers on the page don’t say on their own. To use it to “explain” the market to the seller can only be seen as condescension.

Perhaps it would be better if addressed to the seller’s agent, rather than the seller, in an attempt to get the agent to talk some sense into the seller. But even that is a stretch.

By: Christina Chan

Christina Chan — Mon, 02 Jun 2008 21:19:27 +0000

I think in most sales transactions, coming in with hard facts and knowledge of current market conditions (along with a little gentle ego boosting) does help seal the deal.

This is a bit off the topic, but I tried the same type of tactic purchasing a car a few years back- no letter, just verbal negotiations, of course. I was clear I wanted the car, but was ready to let it go it they didn’t sell it to me for “market value.” I had the facts on hand and the numbers on hand to back up my case. I got my price.

By: Jack

Jack — Mon, 02 Jun 2008 20:46:43 +0000

Krystal

You make some valid points. The problem is that you have taken the position of logic and reason. Many people look at their houses as extensions of their persona, a low offer can be , for many, like a cold rejection or an insult to their appearance. They need that assurance that “It’s not you, it’s the market” so don’t be offended and realize you’re not alone.

my 2 cents

By: Christina Chan

Christina Chan — Mon, 02 Jun 2008 20:14:32 +0000

Ah. Interesting way of looking at it, DF. And a nice alternate point of view.

-Christina

By: DF

DF — Mon, 02 Jun 2008 19:54:37 +0000

The real challenge in this market is that comps are no longer (if they ever were) a meaningful measure of a home’s actual value. Comps were in the past seven years a primary driver of housing price hysteria because one overinflated sale always generated evidence that another was justified. The Case-Shiller index is the closest thing we have to an objective indication of what home values really are over time.

So consider this for a data-based proffer to a potential seller. “I would love to buy your house, but as these statistics show, it is still priced substantially over its true historical value. [Insert numbers/graphs/charts here.] I am willing to offer you the value of this home as measured by the Case-Shiller home price index, adjusted for inflation. This nets you a solid 3-5% YOY appreciation while assuring me a reasonable price.”

Of course, because sellers tend to believe their homes are always worth more than statistics suggest, and because many sellers are upside down thanks to HELOCs and buying at inflated prices in past years, I very much doubt this would work. Still, if our real estate market were tied more closely to economic predictions, I doubt this bubble mess would have happened.