Monday, June 28, 2010

That "Insulting" Offer

Consider this..

Your home is on the market... just a couple of days.... you have reviewed comparables with your Realtor and have priced your home to sell. You have staged your home and it looks fabulous! You've had showings and one has produced an offer!   But wait!   The offer is low... real low.... what do you do?

Your initial thought is, no way! .. an insult some may say.

I say.... yes, maybe way too low, but definately not an insult.    Why?... because this Buyer loves your home or would not be making an offer.... They are just doing what they think is the "right" thing to do in this market.

So, how will you respond?      You can do one of three things.... Accept, Reject, or Counter Offer.

We already know that you are not going to accept.... so, should you reject or counter offer?
Let's think about that....

Try and take the emotion out of it.....

Re-evaluate the comps....see how your home is positioned in the market today.     Has anything changed?    What's the actual feedback been on your home?    Are the financing options still the same?  

Based on this information, with your Realtor develop a plan that will get the Buyer up as far as he will go..

Counter offer a bit... either on price or terms... but leave the door open,  just slightly,  so that they will feel comfortable in making an advance.   A reasonable Buyer will be looking at those same comps that you did and evaluating the market with his Realtor in the same way you did.    

By keeping emotions in check (not easy, by the way).... reviewing and evaluating facts....   you may be able to come to that "meeting of the minds"  even if their initial offer is so very low! 

About the author...  Carol-Ann Palmieri, a full time Real Estate professional in Massachusetts for the past 24 years along with Al Mussi has helped hundreds of families find, sell or purchase new places to live.

Al and Cal's primary areas of service Franklin, Bellingham, Medway, Millis, Medfield, Norfolk, Wrentham, Plainville, Blackstone, Walpole, Milford, Holliston, Hopkinton, Mansfield, and Foxboro, North Attleboro, Hopedale, Mendon, Millville

Search for Homes    (to get up to date MLS listings)     508-494-9061

Thursday, June 24, 2010

Having Your Cake and Eating it Too???? Right of First Refusal

Would a Right of First Refusal Benefit You?

Normally a right of first refusal is used when a prospective buyer offers to buy a home, but for some reason has a contingency that needs to be addressed before “he” is willing to move on… (The most likely contingency would be that the buyer needs to sell their home before purchasing)….

The seller in this case, likes the offer, but for good reason is wary of the contingency....

What can they do?     Buyer and Seller may agree to a “right of first refusal”…..

The Buyer and Seller enter into contract, price & terms are agreed upon and there is a RFR clause.

The right of first refusal gives the Seller the right to continue marketing his home…. If he gets another offer from another Buyer before the 1st Buyers contingency is met then He can then ask Buyer with the RFR to remove the contingency and move forward towards closing, or…. back out of the transaction so that the Seller may move forward with the subsequent offer….

The Benefits… a sense of security…..

To the Seller:    knowing that he has an offer for a certain amount of money…that is if the buyer’s contingency is removed…..

To the Buyer:     knowing how much he will be paying for a property….. Thereby knowing what his bottom line is on both sides….


For the Seller:      It stops some potential buyers from viewing their home….he really doesn't have his home sold until the Buyer gets a contract on his....

For the Buyer:      it can have an effect on his negotiating power…. The seller will view this as a less than perfect offer and want more money for accepting it.....

Bottom line……

This can afford a sense of security for both Buyer and Seller but comes at a cost….