No one ever intends for the seller to buy their home back, but it happens and the sellers sometimes doesn't even know what hit them until the morning after. The fact is, that the morning after (the offer) is sometimes the right time to respond. Too often emotions get in the way of making good decisions and sometimes, sleeping on it is just what the offer ordered. If nothing else, it leaves the door open for further negotiations instead shutting down would could turn out to be a ratified contract.
Great post by Karen.
The Seller Just Bought Their Home Back
We have all been there. In the heat of battle, we get the buyer and seller to that last little counter to meet in the middle...and we are just stuck...no one wants to lose. No one wants to give anymore. So the seller decides to "stand their ground", after all, it is the "principle of the thing" right? And in that instant, the seller just bought their home back.
It was a move of pride. And a silly one at that, especially the morning after when they realize that they are back at square one. You can't just slink back to the other agent and beg the buyer to come back to the table. You had a real buyer, one that had negotiated to give you the best terms. The buyer let you keep your new refrigerator. They accepted a credit for a washer and dryer so that you didn't have to buy new ones yourself. They agreed to push back the closing date and live with the parents for a couple of weeks. But darn it, they wouldn't let you win. They wouldn't just pay that extra $500. And that is like what not even $2 per month difference in their payment, the sellers huff and puff. Really? Let's think about what the buyers are saying.
Because there are plenty of other sellers out there that will love to sell their home and are motivated to get moving to their new home! Whether they are moving out of the area, or they are excited to take advantage of the low interest rates to move up to that bigger home, other sellers are just more motivated.
My advice to my sellers in this situation is always the same. I get out the absorption rate. I talk about the timing and the market conditions. I talk about the likelihood that the next buyer that comes along will expect a discount on the price, a price reduction. And then, dear seller, you are taking even less for your home. And in the meantime, you paid one or two more mortgage payments, lost a few dream houses you had your eye on, and had to reduce your price....the whole time wishing that you would have given up that $500 so that you could have moved by now.
I recommend that you sleep on it. Let the numbers rest and look at them with fresh eyes in the morning. Focus on the future, the prize...the terms are just as important as the price. Is it worth the money to gamble on the "next offer"? Sometimes the answer is no. And if the answer is yes, maybe I am not the best agent for you. Maybe you are not as motivated as you told me you were. Maybe your situation has changed and you haven't told me. Because a motivated seller wouldn't let $500 keep them in a home that no longer meets their needs. Just my opinion.
Karen Feltman, REALTOR®, ABR, AHS, CHMS, CNE, CRS, e-Pro, green, GRI, SRES, TRC
411 First Avenue SE, Suite 500
Cedar Rapids, Iowa 52401
Licensed in the State of Iowa
© 2013 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist
Charita Cadenhead, Your Metropolitan Birmingham, Alabama Real Estate Broker of Choice
Got a question about Metropolitan Birmingham real estate? Just ask Charita. Need a good Realtor(R) to help you find a new home or sell the one you already own? Just shoot me an email. In need of a rental property? Subscribe to be notified whenever we list a new or home for sale.
Charita H. Cadenhead, Realtor®
Keller Williams Realty Metro North
Gardendale, AL 35071
Search for properties at Charita Cadenhead's website
(205) 527-1112 - cell
(800) 496-7431 - Fax
One thing about being in real estate: I can't hide even if I tried. Charita Cadenhead: I'm Everywhere You Want to Be!