There’s One In Every Crowd

different

Last week, my friend Haifa Khoury looked at offers on her listing at 314 Chesterton in Belmont. It’s a REO she listed for $500,000…a REAL bargain. There’s another listing across the street and down a few doors listed for $725,000. That fact alone was enough to tell me that she was going to get multiple offers, and I wasn’t wrong. She got 21 of them! They all came in over the asking price…except one. This bright individual came in at $450,000…and then called later and said the buyers wanted to reduce their offer to $425,000! Hello! Earth to buyer…get a clue!

On Monday I presented an offer on a different REO at 1811 Helene Ct in San Mateo. It was preposterously under priced at $396,000 and is on a 10,080 sq ft lot. The house sold in 2006 for $740,000. Just like Chesterton, they got 22 offers. My clients offered as much as they could…and we weren’t even close. The listing agent laughingly told me that one of the offers came in at $200,000. It’s hard for me to believe that there are buyers out there who have so much extra time that they can sit for a couple of hours and write an offer $200,000 under asking in scenario where they knew there was going to be multiple offers.

I doubt whether there is, but if anyone out there is contemplating writing an offer like this in the future, here’s some advice.

1) Even if the house has been on the market for a year there’s no seller anywhere who’s going to take an offer that’s half of the asking price. Why? Because you can’t be retarded and own a house around here.

2) If you know going in that there are going to be multiple offers, and it’s likely to be a number over 10 offers, you have a better chance of being crowned Queen of England than you do getting this property under the asking price.

3) If you’re a real estate agent and you agree to do this for a client…it’s time to look for another line of work. You have bills to pay, and they’re not going to get paid if you continue to do this. Plus you’re as clueless as your client and that doesn’t bode too well for a future for you in this business.

OK, I’m getting down off the soapbox. Thanks for letting me vent.

Comments

  1. Hi Jim,

    I’m in total agreement with you! The Massachusetts market is beginning to pick up again — the last house I made an offer on with a client — we were $30k over asking and didn’t get it!

    The market is changing…again!

  2. Yet we all deal with those unrealistic buyers everyday. They just have to get knocked off their feet a few times before the light goes on that it isn’t working.

  3. I agree. The Realtor, is the professional. You must keep the order of your business and your clients. Let them know that our market is changing, daily! Lots of buyers, all trying to steal a property. That’s really okay. You just need to keep them realistic to your situation and market.

  4. hehe. yea. market is picking up and we are going to see prices go to million.
    Hope my home doubles!

  5. I can forgive this buyer, but not his agent 😛

  6. Jim Minkey says:

    Jim: I respectfully disagree. If a buyer wants me to write an offer at half price in a multiple offer situation and I do it, I’m not serving them at all. We’re here to educate and represent our clients. What’s the point in wasting everybody’s time?

    Steve: AMEN!

  7. Larrisa says:

    Thanks Jim- everyone seems to be scared to be honest and use commom sense these days!! I read your blog alot, it’s fun! Keep up the good work!!

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