: A New Tool for Sellers?

A New Tool for Sellers?

question (sxc)

Has anyone tried this, and if so what kind of results have you had?

I read recently of some new tactics, to get home buyers the pull the trigger, that are surfacing around the country.  One tactic is an offer written by the seller!

It's called a reverse purchase agreement, an unsolicited offer that gets written by sellers for prospective home buyers.  According to RISMEDIA some agents say that the strategy could be the next weapon in the ongoing battle to get home buyers to take notice and get off the fence.
 
Since home buyers control the market now, with so many choices, there's really no incentive to decide on a purchase quickly.homes (sxc)

One agent had a market worn listing.  
After months on the market, professional staging, aggressive price reductions and weekly Open Houses, there was one qualified out of town buyer who viewed the property twice.  There was interest and his agent continued to keep in touch with the listing agent.  So there was hope that this might turn into an offer.

But months later, still no offer. The buyers agent continued to keep in touch with the listing agent, so there was some interest.

contract (sxc)With no other prospects in sight, the listing agent and his clients decided that if the buyer wouldn’t make an offer, they would. So they wrote an offer, complete with a quick closing date and an unsolicited $10,000 price reduction on top of a $20,000 price reduction earlier in the month.

The prospective buyers are reviewing the sellers offer and haven't yet made a decision.

I'm wondering if this might be a way for sellers to gain a little control in this buyers market.  What do you think?

Keller Williams
Atlantic Shore
Laura Giannotta
609-384-6121
Homes in Waretown, Barnegat, Manahawkin, Long Beach Island, Little Egg Harbor and Tuckerton!
www.JerseyShoreViews.com

 
 
 
  

     
Comment balloon 20 commentsLaura Giannotta • January 13 2009 08:05AM

Comments

Interesting idea and concept I have never hear of it nor have I tried it but for the motivated seller it might just be what needs to be tried to get the buyer interested.  If you try it I would be anxious to hear how it worked out.  Thanks for sharing, If I could re-blog this maybe someone out there has tried it with success....

Posted by Diane Daley (Caron's Gateway Real Estate) over 9 years ago

Hi Laura:

HMMMMM...that's an idea!

ToulaRosebrock.com - DianeTurtonRealtors.net

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) over 9 years ago

Interesting concept and I think is a VERY AGRESSIVE WAY TO DO BUSINESS THAT MAY JUST WORK!  I think you have to have to buyers on the fence though, you can't just arbitrarily draw up an offer and give it to everyone who comes through the door, IMO...

Posted by Mike Klijanowicz, Associate Broker @ Cummings & Co. Realtors (Cummings & Co. Realtors) over 9 years ago

I've never seen this done but I can see how this could be effective - especially with first time buyers.  Not only does it aggressively open the discussion, it also provides potential buyers with a roadmap to the purchase.  No longer are they discussing making an offer, they are now discussing potential terms - seems like a big hurdle jumped.

Posted by David Henke, Realtor, Homes Just West of Philadelphia PA (Long & Foster Real Estate, Inc) over 9 years ago

That sounds like a lawsuit waiting to happen.  I'll pass. ~ Evelyn

Posted by Evelyn Panning (Property Connections Realty Inc.) over 9 years ago

Laura I have heard of this before, actually at the CREN (certified real estate negotiator) class. I have never tried it myself but I have heard of it. I may try this when the time seems right. It only seems that it would work in a very unique situation. 

Posted by David Width Jr. over 9 years ago

Laura - Now what happens when that buyer rejects the offer...do the sellers then keep their new price (with the extra $10K reduction) or stick with the last price reduction and hope someone goes at that?  If they're willing to try it at $10K under their last price, I would advise them to just do a price change and see if the offers come in off of that....if it really is a nice price at that level, then they should be able to find a buyer.

Posted by Matt Stigliano (Kimberly Howell Properties (210) 646-HOME) over 9 years ago

I have not tried this, but I have heard of it. I kind of like the outside of the box thinking that it implies.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

Hi Laura, This is definitely an interesting idea to think about; one I'd never heard of before. I'm not sure if I would try this or not. I wonder if this has worked for others? I would be interested in hearing their stories and input regarding this concept.

Thanks for sharing!

--Anne Rains

http://activerain.com/blogs/ladyofrealty 

Posted by The Rains Team, A higher standard in real estate (Keller Williams Realty Atlanta Partners) over 9 years ago

It should get the buyeers attention...the buyer may fing they are getting a better deal than they would have offered!

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 9 years ago

Hi all, thanks for coming by and the great comments (I'll get back to each of you soon)...I have a couple of questions from your comments..

First, yes I think it only applies to a buyer who has expressed interest, but Evelyn (from Property Connections) where's the law suit?

As for lowering the price, the point here is that there is someone interested at that price, but hasn't moved off the mark.  This opens the discussion.

When I hear more about this, I'll post.  I just thought it an interesting way to give a little power to the sellers!    

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) over 9 years ago

Quite an interesting concept. I can see this happening more often during these trying times.

Posted by Craig Rutman, Raleigh, Cary, Apex area Realtor (Helping people in transition) over 9 years ago

Hi Laura - I read about this too but haven't heard of anyone using this technique yet.  Guess it would depend on a lot of different circumstances, motivation levels, etc.  Don't know about a law suit (?).  I'm all ears but a little guarded.

Posted by Alyce Martin, Albuquerque - THE Place To Be! (The Realty Group, LLC) over 9 years ago

Laura, I have heard of this kind of offer but never seen it in practice.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 9 years ago
Laura, fantastic idea. Think right in buyers' shoes. I think if the price is right plus seller's protection, there is really no reason to NOT buy the specific property.
Posted by real estate real estate over 9 years ago

SOunds like it could work if you knew you had a buyer that was on the fence.  It is like countering the offer you never got.

Posted by Scott Guay, Associate Broker. Ocean City and Ocean Pines MD (Berkshire Hathaway Home Services PenFed Realty) over 9 years ago

This is an interesting way of doing it.  I like it, and it is certainly worth a try.

Posted by Susan Mangigian, Chester & Delaware County Homes, Delaware and Ches (RE/MAX Preferred, West Chester, PA, RS152252A) over 9 years ago

Laura,

I have read many of the articles on them, have yet to try myself....I see no way it can hurt.

Posted by Daniel J. Brudnok, REALTOR, SRES, e-PRO,ABR,GREEN,CSP (Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038) over 9 years ago

Everybody seems to think this is an interesting idea, and it's worked for Pattie Romano...just another  something for our bag of tricks!  (Like Felix the Cat!) 

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) over 9 years ago

The idea makes me think that the offer gives the seller a sense of power by having the offer in writing.  It may be just as important as the offer in writing going the other direction.  I know when I get a call about a buyer wanting to make an offer on a listing I always say "put it in writing".  Kinda the same thing only in reverse.

Posted by Wanda Thomas, Billings Montana Real Estate (Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN) over 9 years ago

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