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"Sellers will entertain offers between $_____ and $______"
Posted on 9/18/19 at 7:50 am
Posted on 9/18/19 at 7:50 am
Why do sellers do this? Who in their right mind would offer near the top end of a seller's arbitrary price range unless it was a highly competitive market.
Are they trying to avoid low ball offers? Create a false sense of competition? What's the thinking behind this?
Are they trying to avoid low ball offers? Create a false sense of competition? What's the thinking behind this?
Posted on 9/18/19 at 8:13 am to Costanza
Buyer - “I got in for $________ which was a great deal because they were asking for between $_______ and $________.”
Posted on 9/18/19 at 8:20 am to Costanza
Its called amateurs. They don't know what they are doing. I think the reason people do this is to prevent low ball offers. But as you said, that means you either listed at the wrong price, don't know what you are doing because turning down an offer or countering is too easy, or most likely you are asking for too much because your high end point is too high.
No different then the people that take an offer on the first day its on the market. First off, you likely priced too high. Secondly, why 1 day? You can't wait 7 days? 10 days? Maybe earn $5000 more if you just wait 7 days. Buyers aren't going to walk in 7 days if they offered you on the first day.
No different then the people that take an offer on the first day its on the market. First off, you likely priced too high. Secondly, why 1 day? You can't wait 7 days? 10 days? Maybe earn $5000 more if you just wait 7 days. Buyers aren't going to walk in 7 days if they offered you on the first day.
This post was edited on 9/18/19 at 8:21 am
Posted on 9/18/19 at 8:22 am to Costanza
Their low number is still the high end of what they want so they make it seem like it’s a good deal for you. Like invicta watches being 90 percent off when in reality it’s not worth anywhere near the “original price.” Pricing is all about perception and “sales” get ya sometimes.
This post was edited on 9/18/19 at 8:26 am
Posted on 9/18/19 at 8:53 am to Costanza
quote:
Why do sellers do this?
I have no idea. It reminds me of how car salesmen approach, "What do you want your note to be?" I always answer, "As little as I can get it for."
Posted on 9/19/19 at 9:24 am to Costanza
They do it to make gullible buyers think the low end is a good deal. They don't expect to sell at the high end (which is usually ridiculously high and has no rational relation to the value).
This stuff works all the time. Same concept as retailers pricing something really high and then putting it on "sale" for 50% off. A lot of buyers are like - wow I got this for half of what it costs/is worth. All the while the seller got what the price they wanted all along.
All about perception.
This stuff works all the time. Same concept as retailers pricing something really high and then putting it on "sale" for 50% off. A lot of buyers are like - wow I got this for half of what it costs/is worth. All the while the seller got what the price they wanted all along.
All about perception.
Posted on 9/19/19 at 10:53 am to baldona
I would like for you to make a suggestion. I own an undivided interest in an eighty acre parcel of property. I was recently approached by a representative of a foreign chemical corporation.It was at one time but no longer listed by a realty. He asked me to offer a price range. I told him that I was awaiting the results of a commercial appraisal, which is true. It is likely that I will be asked to meet with some of their executives before an appraisal could be completed. How would you proceed?
Posted on 9/19/19 at 12:45 pm to CharleyLake
quote:
He asked me to offer a price range.
This is okay as a discussion for parties all on the same side of a transaction - frank discussion of the market realities, strengths/weaknesses of the asset in the market, unique challenges, expected range, etc.
However, I would never offer anything like a "range" unless the low number was my really high "starting position", because if it wasn't your opening bid, from which you intended to negotiate down, it is now.
I get that folks want to know what the reasonable range is, but it is not my job to protect the other side of an arm's length transaction from me - as long as my actions are legal, ethical (and as a bonus, moral), then I can start with an insanely high asking price and just not take an unethically or immorally high price (just discount it to my actual high valuation) upon reaching agreement.
I don't have to tell them what my minimum price is at the start and no rules of buying/selling say otherwise.
(ETA: As a practical matter - if your realtor says likely will sell for $Y and the appraisal will be from $X to $Z - take the HIGH estimate and add 10 to 15% - make that the low range and then add, say, 10% to that and make it the high range, but only do that if you feel really comfortable the appraisal will come in under both those numbers. Otherwise, hold them off until the appraisal for a real number.)
This post was edited on 9/19/19 at 12:49 pm
Posted on 9/19/19 at 1:43 pm to Ace Midnight
I appreciate the guidance. The appraisal will come in as an value per acre not a range, I suspect. Part of the assets are owned by a trust who is paying for the appraisal. Upon my understanding the trust has fiduciary thing which cannot sell assets below an appraised value. I suppose that provides a certain level of protection. I suspect that potential purchaser's interest is becoming more than speculative.The trust is having difficulty locating a commercial appraiser at this time.
I will estimate a category of 10-15% greater than what I think the number will be. I want to be realistic but I do not wish to waste my time and the other party's time.
In addition to trust a separate entity, I represent twenty-six owners almost all of them live out of state. My experience is limited other than selling a pasture to a cattleman near Vinton. If this deal does not work I will list with a local real estate agency.
Do you know if Asians (South Koreans) bargain differently or have different expectations?
I will estimate a category of 10-15% greater than what I think the number will be. I want to be realistic but I do not wish to waste my time and the other party's time.
In addition to trust a separate entity, I represent twenty-six owners almost all of them live out of state. My experience is limited other than selling a pasture to a cattleman near Vinton. If this deal does not work I will list with a local real estate agency.
Do you know if Asians (South Koreans) bargain differently or have different expectations?
Posted on 9/23/19 at 12:25 pm to Costanza
They are likely being advised to do this by their REA. Agents only care about selling quickly. An extra $5-10k makes very little difference for them.
Posted on 9/25/19 at 5:59 am to CharleyLake
If you have an undivided interest where all interests are similar (other than size); I’d suggest you also seek a favorite nations clause in the purchase agreement. Good luck.
Posted on 9/25/19 at 8:23 am to Cajun Cricket
I take your meaning. My uncle made some Servitude and ROW agreements with a few pipeline companies many years ago and did that for the family. I don't think that is applicable to us now because the undivided interest owners donated the properties to a Family Group LLC. That is our fractional interest was converted to shares.Thanks for your comment.
Posted on 9/25/19 at 9:03 pm to Costanza
Because I’m a dork, I just thought of this.
May make an offer below the stated range.
“ARE YOU NOT ENTERTAINED?!?”
May make an offer below the stated range.
“ARE YOU NOT ENTERTAINED?!?”
Posted on 9/26/19 at 11:43 am to Costanza
Seems like an easy call on what to offer, if their bottom number is reasonable.
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