He had seen the house a few times, and loved it. Who wouldn’t? The ornate carvings surrounding the fireplace and trimming the grand staircase were among countless eye-popping details. The owners had spent decades adding many intricate details. The price had been reduced by over $40K, bringing it down the half-million dollar range. The buyer had been shopping within the original price range, and adored everything about the place. He decided to write an offer.
And what did he offer for this already-reduced home that he absolutely adored and couldn’t wait to own? He offered $50K less than the reduced price.
That’s over 10% of total asking price. (When’s the last time someone asked you for fifty thousand dollars?)
Just to get some perspective on this, think of the last time you listed your property for sale. Remember the price? Now imagine someone making an offer for 15% less. On a $250K home, that would be $37,500 of your money that the buyer expects you to fork over. Now imagine you had already, perhaps out of desperation, reduced it by that much. Now we’re talking about $75,000 of your hard-earned cash.
… Are you getting the picture of the unabashed greed going on here?
What’s worse, this is happening more and more.
Ever since people heard it’s become a buyers’ market, buyers have interpreted this as their right and obligation to hold sellers over a barrel.
What they misunderstand is that a buyer’s market is not a bully market.
What “Buyer’s Market” REALLY Means
A buyer’s market has little to do with price.
It means that buyers have more selection in their price range. Options are not scarce as they were in the sellers’ market of five or ten years ago. There are many choices in every price range. Aren’t you lucky?
It means that buyers have time. No more do they need to race an offer in to beat out competing buyers. No more do they have to decide after seeing a property once. Buyers are not time pressured, and have the luxury of being able to look, and look, and look some more.
Instead, many people are low-balling right now, and some are doing so offensively.
If you’re planning to offer in the near future, don’t demand tens of thousands of dollars from strangers just because you misunderstand the term buyers’ market.People don’t owe you their home equity any more than you owe them yours. It makes you look rude and dumb and downright greedy.
Don’t be that guy…
** Just a note about “that guy” — the story I share is a fictitious creation – a culmination of numerous people and characteristics. I guard carefully the privacy and dignity of my clients, colleagues, and others I come into contact with. This story was meant to illustrate a general common occurrence, not identify any one person or deal.
The amount and size of increasing low-ball offers though, is a real, accurate depiction**