Over the years in real estate it never ceases to amaze me if you present an offer after careful research to the listing agent... sometimes the other agent gets really indignant and acts as if you insulted the seller. This happens even if you've done a lot of research on the comps. Your numbers may be right on the money, it is their expectations that were were not met! It is always a painful and delecate situation for all because there is emotion attacted tot he deal.
The agent by law has to present the offer to the seller. The problem is that the agent is the messenger to the seller. If they tell the seller it is too low, the seller may just outright reject the offer. Real estate markets have now changed and will be changing for some foreseeable future, it would be financial suicide for a seller to just dismiss an offer witout really looking at the merits of it. It is most advisable to present the offer as typical of the current market, and find common ground in the contract. Look for all agreeable points in the offer. That leaves the price, terms, and concessions. The attitude and tone of the presentation needs to be objective, void of any emotion. It is a business proposition.
If you treat the offer as ridiculous, and have the seller agree with you...start packing your bags, you do not have long for the world in real estate. You are looking at your own end in the real estate business.
Negotiations are an art that has not been seen in the last few years in real estate. The real estate market that we experienced after 2001 are not typical, it became a frenzy for speculation. Most old timers in the business will now acknowledged that we are moving back to more normal times in real estate. For newcomers, it will feel like the end of the world. It isn't.
What do you do when you get a super low offer in this real estate market? Is it an opportunity or were you and your client insulted?
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