Should you accept an offer right now, counter, or wait?

Your home is on the market, and although buyers have come through, and some of them have even placed offers on your home, those offers ended up going nowhere, and your home is still on the market.

So you reduce your listing price to obtain a new buyer, and then nothing.  Maybe you reduce it again, and then...... nothing. I have heard many tales from sellers who ended up reducing their home's asking price to a much lesser price than their first offer, and they just feel like they are giving their home away. How much do you have to reduce your home to sell it, when just a month ago, buyers were banging down the door to come in?

Now I am fully aware that some offers go nowhere, and some deals fall apart- (a lot more than they used to, it seems) but if you have an offer on the table, especially given these circumstances, don't wait to respond.

Have you ever heard the saying, "A bird in the hand is worth two in the bush"? When you receive an offer on your home, respond quickly or respond with a specific time that you will respond, and why, if your agent deems appropriate. That doesn't mean that you have to fire-sale your home. There is no rule on how much of a counter-offer that you must or should give, or when you should give it, for that matter. The important thing in negotiations is that you treat the other party in the manner in which you wish to be treated.

So go ahead, counter offer, make it just a representative gesture if you must, but do something! Otherwise, your home can  end up sitting on the market waiting for the next offer to come in.

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What to do if your real estate agent "drops the ball"?

You would think that since a real estate  agent works only on commission that they would be hungry  for a deal, especially in today's market. Those experienced agents like myself understand that putting a deal together in this market requires a bit more work, and what you may not have had to do a few years ago is now SOP (Standard Operating Procedure)

Communication is key to any transaction- and silence is absolutely deafening. There is  nothing more frustrating to a home seller or home buyer when they put their trust into an agent who "drops the ball" on their transaction and loses the deal altogether. Trust me, the other agent is not happy about it, either. So what can you do?

Pay close attention to your very first clue that something could be amiss in any type of communication at all. This should start at the interviewing process, when you initially select your agent. So if you have even the slightest inkling that there is a communication issue at your very first meeting with your agent, DO NOT DISREGARD IT, and do not hire that agent!  It is a well known fact that people repeat behaviors.  It will only get worse, and that could end up costing you a lot of money. Hopefully, it hasn't already.

A couple of notes on poor communication or miscommunication:

FALLACY: A team of agents is NOT Necessarily better than one. Have you met all of the agents on the team that will be assisting you? Are you supposed to contact certain team members for certain questions? Do certain team members handle only certain things? If you don't have this in writing at the first initial meeting, let them go. They are not organized- if they are not accountable to themselves, for heaven's sake, how can they be accountable to you  if they don't have their duties clearly outlined?

FALLACY: You just cannot tell me that after a buyer's agent submits an offer on their client's behalf to your listing agent, that after a couple of rounds of going back and forth that the buyer's agents suddenly does not return phone calls, and the buyer disappeared without explanation. Face it, your agent is not tracking  down the buyer's agent because your agent was too lazy to make the call. There are NO EXCUSES.

On the VERY RARE occasion that I could not reach the buyers agent or the sellers agent, I have called the office manager, simple as that.

Finally, if you are not getting the representation you deserve, give your agent an ultimatum. Shape up or ship out.
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Should a home seller even respond a verbal offer?

In our part of southwestern Connecticut, verbal offers are not considered bona-fide  offers, but that isn't necessarily true  in all parts of the state, or the country for that matter. Generally speaking, if a buyers agent presents a verbal offer to your agent for your home, and the buyer couldn't even take 15 minutes to write up an offer, I wouldn't hold too much stock in that offer. BUT THERE ARE EXCEPTIONS....

I do want to stress that if your agent receives an offer on your home, whether it's verbal or written, it must be presented to you. As for buyers reading this article, you should know that all offers are to be presented to the seller  up until the time of closing, and the fact that you have a fully executed contract on a property does not diminish the listing agent's responsibility to present those offers, unless the seller has specifically requested in writing that they do not wish to see any other bids.

When to respond to a verbal offer: If and when your agent calls you with a verbal offer on your home, it is always your decision as to whether you will respond. Sometimes, the buyer's offer has an odd contingency and the buyers agent might feel that if you won't even consider that offer, that it is not worth anyone's  time to put anything formal in writing.  It could be that the buyer is out of town and want to move forward and that buyer just can't get together with his/her agent to put an offer in writing. Let your agent be your guide- I can assure you that most listing agents will request that the offer be in writing before presenting anything to you- bu there are extenuating circumstances.


When NOT to respond to a verbal offer: Again, let your agent be your guide. I would tell you to consider  not responding to a  verbal lowball offer . That buyer has nothing to lose, not even 15 minutes worth of his time to write up an offer. If they are truly interested, the psychological benefits of making a bona-fide offer, along with a deposit check can only help to make that buyer come up to a a reasonable price. If the buyer has not even seen your home, and is purchasing your home for speculation purposes, let him put something in writing.

In some areas, verbal offers are not so frowned upon- ask your agent at the time you authorize your listing contract how verbal offers will be handled.

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You are the seller, YOU are the boss! Your Realtor should listen to you!

I recently spoke with a homeowner who had experienced some difficulty in getting his agent to listen to his concerns, and having that agent do something about it. I truly feel badly for that homeseller, who in his case, was a very well educated man, had great business acumen, and had some very appropiate ideas that his agent did not seem to want to listen to, or implement.

Now honestly, that's not always the case. Some homeowners have some ideas that quite frankly, would not be in their own best interests, and it's up to the agent to explain to them that while they appreciate their ideas in order to effect a sale, that those suggestions would not be of benefit, and in some cases those ideas, if implemented could or would be detrimental to a sale.

What are some appropriate suggestions to give your agent?

Take new photos. After a certain period of time, or a season change, the main picture  for the house can look dated. This is not something that you hsould have to tell your agent, but if you need to, DO IT!

Look at your listing as it appears in the MLS and suggest changes if needed- I am convinced that most homesellers have never seen their listing, because if they had, they would change it immediately. An agent not inputting all of the information fields is sheer laziness on their part. (I'm sorry- I'm passionate about it) I would think that a few minutes to put room measurements in  the listing is no big deal. I always do it. That's only one example- schools are important too, especially if it's a sought after educational system.

Some buyers need certain rooms to be of a certain size, and if it's not  readily listed on th MLS data sheet, or available in any way, are not  inclined to see a house and waste their time for something that could only be a maybe. Sure, maybe a room size that is presented is going to turn off a buyer, but that would only be a showing that went nowhere anyway. My standard operating procedure is  that the seller signs off on the MLS sheet, and OK's it, as well as the brochure.

Open houses- well, that's a mixed bag. A few open houses in the right location can be a good thing. Be careful about overexposure to buyers who look every week to see what new listings there are. Agents have homeowners thinking that open houses sell a house. Agents get leads from open houses, and it is a well known statistic that less than 3% of all homes sell at public open houses. You don't want a buyer thinking, "Oh, that house is STILL available!"

If you have had any offers in the recent past, go back to those buyers and see why they didn't follow through on the transaction, if you don't already know the answer and have done everything you could to effect a sale. Could it have been that their highest number was not what you countered at? If you knew what their highest number was, would you have accepted it, or would you accept it now? 

Is it because the floors need refinishing in one spot, or a carpet needs replacing and they couldn't be bothered? What if you addressed their objection after contingencies were all met, and prior to closing? Could that make a difference? You bet, so why not give it a shot? The worst that can happen is that the buyer says no. So go back to that buyer and find out! The answer could be quite simple, and you can have a sale because your agent was pro-active.  **Think outside the box**

A few years ago, brokers didn't have to try so hard to put a deal together. They came pretty easily.  That's not true nowadays. If you have a buyer, do what you can to hold on to them, and put a deal together- if your agent is not willing to go the extra mile for you, you shouldn't feel stuck. If you are unhappy, you can always request a change. Most agencies will abide by a clients request.

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What Happens if You Change Your Mind After Placing an Offer on a House?

This is a most uncomfortable situation for everyone involved. An important thing to consider at this point,  is how you got to the place of making a bid, when now you are reconsidering that very offer. If you are still in the negotiating stages, and the seller hasn't signed an agreement, it will be a lot easier for everyone.

A couple of questions to ask yourself:

1. Did someone push you into making an offer when you weren't ready?
2. Are you having second thoughts  about the offer you made, or any of the terms or conditions?
3. Has something suddenly changed, (such as a job loss or other unfortunate  event)
4. How far along in the transaction are you? This will determine what you need to do next.

WHAT TO DO: If you felt pushed into making an offer, whether it's by your spouse, significant other, a friend, a child, the seller, the market, or heaven forbid- your agent, TELL YOUR AGENT NOW!  If you are having second thoughts about this particular home for any reason, the time  to voice your concern is NOW.  If the seller has accepted your offer in writing, it is time to call your attorney as well as your agent- do that NOW and forget about the rest of this article.

Yes, as I mentioned, this is an uncomfortable situation, but the best thing to do for all parties is to get it out in the open as soon as possible. I rarely come across a buyer client who changes their mind after placing an offer, but that comes with years of experience on my part, and being able to tell whether someone is truly ready to make the next step after viewing a home that they like. Your agent should ask appropriate questions so that you never get into this situation. I know I do, and that's why this type of thing very rarely happens when you hire me as your agent.

I don't push anyone into making any decisions, and if I ever get the feeling that my client is pushed by anyone into a decision that they are not quite ready to make, then I will kindly and gently do my best to handle the situation so as not to put anyone in any kind of uncomfortable position. Need a trustworthy advisor? Contact me