Hawaii Randy's Real Estate Opinions: February 2008

Presenting a Silly Offer to the Sellers

Silly ContractOn one of my new listings that went on the market this last week, I had an agent show it twice and call to tell me they were coming in with an offer.  I did expect this one to sell fairly fast, so I wasn't surprised by the immediate interest. 

I just closed escrow on a condo just down the street that had almost the same floor plan and was a few square feet smaller built by the same developer.  It recorded the day before and went in escrow in just a week after putting it on the market.

She said she would be e-mailing the offer that evening (Friday).  I just received the offer today (Sunday morning).  The offer was far below any comparables in the neighborhood and far below our asking price which was the lowest in the sub-division.  After telling us an offer was coming Friday to have it show up on Sunday; leaves the seller disappointed.  Fortunately I did warn them when we signed the listing that they may expect silly offers.

Here is the rub on an offer like this.  If the buyers are actually interested in the property they have just sensitized the sellers.  Their best chance to get a good deal was their first offer.  If they had made an offer closer to reality the seller would have either accepted it or at the worst countered it.  At this point they have an offer. (I almost forgot to mention, no pre-approval or pre-qual from a lender). It is a silly low offer that they probably will not even counter.  Today's open house will bring more interest and hopefully a real buyer (which this one may or may not be).

I do not know whether this offer was driven by the buyer or their agent.  The lack of communication and the lack of a pre-approval letter I lay on the shoulders of the agent.

I will present this offer to my client.  I will printout an updated comparable report for them to compare this to.  I will also get back to the other agent immediately after my client gives their response.  That is what professionals do.  If my client decides to counter this offer, I will highly recommend they also require a pre-approval letter from a funding lender and to clean-up a few housekeeping issues on the contract.

As agent we can do our buyers a big service by writing clean offers, getting our clients pre-approved with a reputable lender and communicate properly with the other side.



Randy L. Prothero, REALTOR®

Principal Broker, ABR, AHWD, CRS, e-PRO, GRI, MRP, SFR

Island Style Realty Inc.

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comment balloon 32 commentsRandy Prothero • February 24 2008 02:07PM
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