I have posted on this before, but it might be time for an update. This is serious folks, so if you were looking for Landlord Man or Evil Rich then read no further.
Over the past 2 weeks I have been involved with 4 offers that were so outrageous they did not even get a response. Before you jump on me, I am the seller on one and the client was most definitely consulted on the other 3.
The reason I bring this up is that many agents (and buyers) are under the impression that any offer presented MUST receive a response.
I offer this point for consideration. There are, on may purchase offers, a paragraph that states "offer open for acceptance until____________". Technically speaking, the offer is no longer valid after this date and, by extension, has self destructed.
The seller does not need to respond.
Might it be considered bad form not to respond? Maybe. Might it be a great negotiating tool? Sometimes.
Also consider this. Have you ever been in a situation where someone asks if you will take X and you say "No". The next question is "will you take Y"? You don't need to counter and bid against yourself. Many buyers will do it for you.
There is also a sales theory that basically outlines that the person who blinks first will always loose.
I'm not saying that these negotiation tools are good for every situation, nor am I saying that they should be used by everyone.
What I am saying is that if you present an offer thinking that you are going to test the water and get a counter, you might just be kidding yourself. You might get a NO response or you might not get anything. This is the risk that you may be taking by playing "silly buyer games" with purchase offers.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
RK,
I suggest that you take the day off to reflect upon your evil ways.. Go chill!
I love it when they (buyer's agents) call up and start throwing the book (NAR regs) at us. At that point I say, ok hold on a minute....you've got mail. I forward the email I received from my seller that says UH -REJECTED - NEXT!
Eveline
I received another one at 445 today. Forwarded it to the seller along with a breakdown. I expect that I will hear back that we are not going to respond. I might not hear back from the seller at all. I know what that means.
It was mentioned here that lots of games are played on both sides and that sellers have their games too. It is unfortunate, but true. When did this stop being a business?
Hi Rich,
Not responding can be a very valid way of dealing with specific offers. Good post.
Fran
How many trees have to be killed for fullish offers. Last week I had a low-ball faxed to office(Friday), agent didn't bother to call, so it sat there till Monday, I got call from office personnel about 10:00, and told them not to bother faxing it was so low. Got a hold of the buyer just before Noon to confirm the no response on contract that expired at noon.
Beside the 5 pages the listing agent wasted, my office wasted 5 pages and if they had mailed it to my home office, it would have been another 5 pages.
Sometimes with all the disclosures, I've seen 10 or more pages come across.
If you think 5-10 pages is a waste, come to CA. Our offers and disclosures that are sent with the offer (not counting the others that will come if the offer's accepted) are pushing 25-30 pages now and tend to increase about every 6 months. Thank God for eFax.
- James
Sometimes in PA we end up with 25 or so pages - My saying is that four offers will kill a tree.
On REO's, I love it when the seller tells me to contact all buyer agents for highest and best -Some of the reactions are priceless. Some day agents will figure out that sellers don't' have to obey silly MLS or local board rules. They don't belong to them so their rules don't apply.