How to Talk Your Bottom-Feeding Buyer Out of Low-Balling

January 17, 2012

How to Talk Your Bottom-Feeding Buyer Out of Low-Balling

So, you have a Bottom Feeding Buyer (BFB) who is bound and determined to get a killer deal on some real estate, huh? He’s heard-tell of this here “buyer’s market” and wants to get himself a piece of that action. Even if it takes all year…

Sigh.

We’ve all been there. Worked with BFBs who, in our opinions, were unrealistic about the extent of this here buyer’s market and the depths to which sellers are willing to go to offload their properties. They’ve listened to late-night seminars or their Uncle Charlie who provided “expert” advice on how to properly offer on a property (asking price MINUS repairs needed MINUS profit desired MINUS margin for risk MINUS 25%-for-good-measure) without regard for whether or not the asking price is reasonable or not.

BFBs want a deal. And they want you to help them get a deal.

So, you find your BFB exactly what he says he’s looking for. A well-priced home in a good location that needs just the right amount of work to satisfy his need for adding value with cosmetic upgrades.

Yay, sez you! Yay, sez your BFB!

You head for the offer table and the BFB wants to offer low. Really low. Obnoxiously low. Ridiculously low. Unreasonably low. (I’ll stop now, you get my drift).

What do you do?

Write ‘er up.

Yep, write it up as per the instructions of your client. No fussing, no arguing, no defending the asking price. If your BFB wants to your opinion of what to offer, he’ll ask for it. Not to say you can’t provide market data if he seems at all interested, but in most cases, especially early on, a BFB won’t be. He wants a deal and he’s certainly entitled to go after it.

Why shouldn’t you try to talk him out of low-balling?

• The buyer is the boss. It’s his money and he has the right to spend it (or not) the way he sees fit.

• You never know what the seller will accept. If you tried to talk your BFB “up” and the seller accepts his low offer, you’re toast in the credibility department.

• The BFB hired you to be on his team. His wants are your wants. His preferences, your preferences.

• If you argue with your BFB over offer price, he’ll wonder if you’re in cahoots with the seller or listing agent, again, jeopardizing your credibility.

Of course, it’s up to you to decide if you want to continue working with the Bottom-Feeding Buyer. You are certainly entitled to end the relationship if it’s not satisfying to you, just as he’s entitled to make whatever ridiculous, unreasonable, obnoxious offer he wants to. But if you agree to help your BFB achieve his goal of acquiring some real estate at a steep discount, don’t waste your own emotional energy and risk your credibility by arguing with him over his approach!

Guest Author Jennifer Allan-Hagedorn has authored multiple books and courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm. The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.