This is a crazy Atlanta real estate market with so may sellers in an awkward position. First of all a little background...there are fewer buyers, fewer home sales, and homes may have fallen in value. Sellers are simply upside down, or have taken a major hit for what equity they assumed they had in the home. To top that off they are not in control of the market in most instances. The fewer buyers that are in the market are still calling the shots for the most part.
For sellers, this means their homes have been sitting for quite a while; there have been few or no showings. So when they get an offer, many sellers are acting as if they are in charge. When it comes to addressing a major issue they simply will not budge. To the seller, it does not matter even if the item is not a costly one. That behavior is very foolish. I can understand being firm on negotiations, but what I am referring to is the condition of their home. A faulty heating system, a low appraisal, a leaky roof, an encroachment of their fence on a neighbor's property is their problem; after all it is their home. I am hearing from many agents that sellers when they finally get a contract and are heading towards closing are killing the deal. Sellers are grandstanding and refusing to address issues that are basically their problem, and the items they are saying 'No' to are certainly 'Deal killers' if not addressed. This is a meltdown that can easily be avoided. The home seller's need to remove their emotions before it clouds their better judgment. Their financial woes are not the buyer's problem. The end result of this unchecked behavior could be total disaster for the sellers in the long run, and they will have no one to blame but themselves.
A lot of life is all about personal responsibility. First of all, the home buyers did not cause this economic collapse. They cannot help it that values have fallen in your neighborhood. They are cautious about moving forward, their job, and unforeseen expenses. When a system in the home is determined to be defective, or there is an identified major litigious item (i.e. fences encroaching a neighbors property) it needs to be corrected. It isn't the buyer's problem, it is the seller's home!
In the Atlanta real estatemarket, cooperation is imperative. The Atlanta real estate contract that we are using here for the last few years is an 'options contract!' Both the seller and the buyer have agreed to allow the buyer to basically 'kick the tires' on the home for a specified period of time. During that due diligence period, buyers or their representatives, can perform a myriad of inspections, check zoning, insurance claims, and then either decide to buy, or fly! Basically, buyers can do their research, but are allowed to walk and get their earnest money back during the due diligence period. They do not even have to give the seller a reason for the termination or provide the seller with a copy of the inspection report. If buyers deem there is something major wrong with a property they do not have to proceed further, especially if the seller has drawn a line in the sand that they will not move forward. The last thing the buyer needs is 'Tude' from the seller!
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Hi Jim, Good post. Yes sellers can be real pains. I know of 2 that lost deals that wish they had them back ( 1 year later) It is up to us now more than ever to smooth over the silly low offers coming from buyers and get our sellers to work thru them in order to make the deal. To quote a famous Atlantan we must now more than ever keep our eye on the prize
Jim - you said it so well. We are seeing 'tude from our seller here as well. The one that really gets me is, "I don't HAVE to sell." Well...why did you hire a Realtor? I don't need "practice" selling homes....
Charlie- All Mountain Realty Same here. In retrospect one will lament they "Coulda, woulda, shoulda!" However it is too late! Keeping the focus is critical as you mentioned "we must now more than ever keep our eye on the prize!"
Lina Robertson, ozarks-realestate.com, Springfield MO Real Estate For Sale (RE/MAX Solutions) LOL! I absolutely love that line! "I don't need practice!" LOL! So true!
part is denial by sellers and part is the sellers not understanding where we "really" are market wise. The agent can help that understanding and therefore the deal. But the time is at listing not after an offer is presented. But not just at listing...constant communication all along the way...prior to an offer and after an offer...
Here, here Jim. Some homes in our area have been listed for years now and the seller's are like very stubborn mules. What a waste of everyone's time.
Perrin Cornell, ABR (Windermere RE/NCW) I totally agree with you. The key is communication, and also motivation. If I sensed that a seller was unrealistic at the beginning, I will not list them. Let them wear out the competition! However, many agents are not as wise as yourself. The may have bought the listing, and that makes problems for the buyers and their agents.
Ginger Foust-Home Stager Oakhurst CA Dream Interior Redesign & Staging Calif (Dream Interior Redesign & Staging Oakhurst CA) I sometimes think that the listing agents do not help the situation.
Gary Woltal - Associate Broker REALTOR® Dallas Ft. Worth (Keller Williams Realty) I am not seeing the sellers heed any advice these days.
Hi, Jim. That's an interesting comment, about not seeing sellers heed any advice these days. They still think they are in the driver's seat! I also think that they are clinging to their idea of what real estate was and have many preconceived and outdated ideas.
Jim the Sellers need to be reminded- Knowledge obtained/learned = Potential Liability !!! As listing agents we can not allow deliberate misrepresentation(fraud)!!! Post home inspection a number of items will need to be readdressed on the Seller's Disclosure !!! It's the old "fix it now(for these buyers) or you'll wind up fixing later anyway(for the next informed buyer) !!!
Great post! The sellers definitely need to be reminded (often repeatedly) that they need to be upfront, honest and understand that the buyer is usually holding all the cards.
Leslie Helm/Real Estate For Trail Riders (Tennessee Recreational Properties) - Many sellers think the market will be back next Spring.
Michael J. Perry (KELLER WILLIAMS Homes & Land Realty) - Under an options contract the seller never has possession of the buyer's inspection. Nothing is disclosed to them. If you do not know what the issues are there is no disclosure. If a buyer requests an item on the inspection be corrected the seller has no obligation under an options contract. The buyer can walk and retain their earnest money if they withdraw their offer in the 'due dilagence' stage.
KERRY LUCASSE - Your Intown Atlanta Real Estate Consultant (Keller Williams Peachtree Rd) - It is a sad but true reality...that many will not accept.
Jim-
In many cases the seller is angry at the price they are getting and resent the buyer. Other times the seller cannot afford the cost of repairs. Sad but true.
Jim Wood Nashville Real Estate (Crye-Leike Realtors, Inc.) - Resentments and rationalization on their part is very counter productive.