Anecdotal Buy/Sell Tactics

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irvine_home_owner_IHB

irvine_home_owner_IHB

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Today's blog article was interesting:



<a href="http://www.irvinehousingblog.com/blog/comments/negotiating-for-real-estate/">http://www.irvinehousingblog.com/blog/comments/negotiating-for-real-estate/</a>



While most buyer and sellers are usually not in direct contact with the other party... there is usually some indirect "reasoning" on why an amount was designated on initial and counter offers.



I also find some of this negotiation skill prevalent when buying new homes from builders where buyers will ask for allowances and the builder agents will feign agreement just to close the sale.



Does anyone have any real examples of some of these tactics they've used to buy or sell property?
 
I've seen several instances where the listing 'Tard will say "Oh, the list price is $575,000, but I know they'll take $560,000" to the buyer or buyers 'Tard.



As if by magic a $555,000 offer gets put in, and is negotiated - if you can call it that - to $560k. The listing agent will bleat about how this is the quality and nature of the offers and how you need to take this deal now.... etc.



If I was the seller of the property, I'd be pretty pissed knowing that my agent connived a quick sale by tipping my hand just to move on to their next target.



This sales technique is used more often then one might think. Sure, you'll hear about 'Tards trying to get the highest and best price for their client, but in reality it's the fastest and surest benefit to the agent that it ends up being.



My .02



SGIP
 
I agree. In today's economic climate, I would think seller agents are looking to close as fast as possible rather than wait for the highest offer.



Which brings me to why are Kool-Aid prices out there for so long? Is it the seller who doesn't want to lower their price, or the seller's agent not wanting to lower their commission and their track record for "highest comps in the neighborhood"?
 
[quote author="irvine_home_owner" date=1241490097]I agree. In today's economic climate, I would think seller agents are looking to close as fast as possible rather than wait for the highest offer.</blockquote>


Not just in today's economic climate, but in all economic climates. It is to their financial advantage to close every deal as fast as possible. It isn't worth it financially to have a listing drag on to garner the seller an extra 10k. The agents are better off moving on to another listing. For both buyer and seller agents, they make the most when deals happen fast, regardless of the exact price. They don't really have much financial incentive to get the best price for either the seller or the buyer.
 
I don't disagree with the need for speed, but if my house has been on the market a week and my 'tard gives my $10k away simply to move the home along, I've not been well served. That behavior is the rule rather than the exception in slower markets. This also assumes that I did not WTF price it from the get go.



My .02 SGIP
 
[quote author="Soylent Green Is People" date=1241504632]I don't disagree with the need for speed, but if my house has been on the market a week and my 'tard gives my $10k away simply to move the home along, I've not been well served. That behavior is the rule rather than the exception in slower markets. This also assumes that I did not WTF price it from the get go.



My .02 SGIP</blockquote>


IMO, there is nothing wrong with agents trying to expedite the sale, it is a matter of how they go about it. The lies and manipulations are not ethical.



In the example SGIP gave, it is also not ethical to reveal the highest or lowest price a buyer or seller would go to. This is revealing a secret that hurts a client.
 
[quote author="irvine_home_owner" date=1241485059]



While most buyer and sellers are usually not in direct contact with the other party... there is usually some indirect "reasoning" on why an amount was designated on initial and counter offers.





Does anyone have any real examples of some of these tactics they've used to buy or sell property?</blockquote>


I figure what the house is worth to me and I offer a bit less to leave negotiating room.
 
[quote author="Soylent Green Is People" date=1241504632]I don't disagree with the need for speed, but if my house has been on the market a week and my 'tard gives my $10k away simply to move the home along, I've not been well served. That behavior is the rule rather than the exception in slower markets. This also assumes that I did not WTF price it from the get go.



My .02 SGIP</blockquote>


If a real estate agent is saying that they are breaking the law in the agency agreement they sign with the seller. Never should an agent tell a prospect that they make take $10,000 less or whatever, this instead they should say lets submit an offer and see what what the seller says. The seller may want to negotiate or not but it is not the agents job to determine what the seller will take. Only to submit offers period. This is just laziness. 90% of these agents are breaking the rules and it is not that they don't need to it's that the Brokers are not training them to handle negotiations in a professional capacity and the agents look like ass clowns because people see right through it. Laying down and barfing it up is not looking out for the Sellers interest. The Brokers really don't care because mostly they look the other way and just cash the checks...
 
[quote author="IrvineRenter" date=1241505581][quote author="Soylent Green Is People" date=1241504632]I don't disagree with the need for speed, but if my house has been on the market a week and my 'tard gives my $10k away simply to move the home along, I've not been well served. That behavior is the rule rather than the exception in slower markets. This also assumes that I did not WTF price it from the get go.



My .02 SGIP</blockquote>


IMO, there is nothing wrong with agents trying to expedite the sale, it is a matter of how they go about it. The lies and manipulations are not ethical.



In the example SGIP gave, it is also not ethical to reveal the highest or lowest price a buyer or seller would go to. This is revealing a secret that hurts a client.</blockquote>


Where is the hurt ?

So lets see. You give away $ 10K on a $ 500K house. Thats 2%.



The definition of Ethics is doing the "right thing" at the "right time" for the "right reason".



For Example.

Home prices have dropped in Irvine per Data Quest in 92603 42% this year.

On a monthly based number thats 3.5% per month.



As a salesperson. The idea is to SELL. Giving a discount that represents

maybe another couple weeks at present market conditions seems hardly

unethical does it ?



This is what happens when people become emotional about sales. You cant make "love" to a home or a transaction. As a salesperson your job is to

CLOSE TRANSACTIONS. Never get emotionally involved in sales.

Never judge or criticize others salespeople for outselling you either.



Or you could do what the Seller wants and chase the market down. Eventually

the Seller will find a real closer that will sell his home in a timely

manner. That 10K could be 30K in a 90 Days.



Sales will always take the path of least resistance.
 
Starter Home - nice avatar. I saw The Wall concert at the Forum in LA. Shows how old I am... but I digress.



The problem is disclosure. I've not allowed my agent to broadcast my bottom line. As long as I didn't start out at WTF pricing, the $10k tip o the hat to the buyers agent for expediency sake is the problem. I don't know about you, but in my world 10k is still a great deal of cash.



The example I gave is based in real world experience. At most of the OC area broker's previews you'll hear 'Tards say "well, l've had this listing for a month (problem 1.....no market time knowledge) and we're not finding any buyers at $900,000 (problem 2...incorrect pricing from the get go) just bring a offer in the $800's because I know my seller will take it (problem 3...too much information spilled).



Is it WTF pricing and lack of market knowledge at $900k? Perhaps not if you're in a $1,M price area. Trust me when I say this. I see Coto and Dove homes at 30 day time frames pitched to other Agents with regular disclosure of the sellers bottom line acceptable offer. Is the home valued at $800k? Perhaps so. I've heard too often than not that an agent "sold the home too quickly" from remorseful sellers, knowing that a good agent got $900k for a model match in the neighborhood.



Inflated pricing is the very last thing I want to see in this market. A 'Tard should earn their 3pct for working to get a fair and reasonable return for a seller, not writing fast contracts that short a reasonable seller.
 
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