I saw a television commercial recently with a young couple and their two children sitting patiently on a bench in front of a house with a "For Sale" sign out front. When the husband asks what they’re waiting for, his wife explains they were told to watch the market and wait for a great deal.
Well, let me tell you, there is no reason to wait. Prices and mortgage rates are at historic lows. Homebuyers can purchase a nicer property at prices that would have been laughed at just five years ago. But still the bargain hunter is hovering, eyeing properties like a predator ready to pounce. And when they strike, it’s with an offer that sellers and agents often consider insulting.
In this market, you don’t have the luxury of such sensitivity. Buyers have been conditioned to negotiate the price for a home â€” regardless of the listed price and how many times it has been reduced. They don’t care about your costs or shrinking profit margins. Why should they? That’s not their problem. It’s yours. If you want to sell a home in a tough economy, you need to recognize that the recession has created a society of bargain hunters that are feeding on the plight of sellers â€” whether it’s a home, automobile, or consumer goods. They’re savvier than ever before and can smell panic in a seller. So, you’ve got to be prepared to deal with their carnivorous desire for a rock-bottom price.
When you get a ridiculous offer, rejoice! At least you have an offer. The alternative is no offer at all, which leaves you with no opportunity to negotiate. When you get any offer, the buyer is signaling interest. It’s now up to you to rev up your sales skills and take that offer from ridiculous to acceptable.