and who wants to buy a foreclosure?

The quick and easy answer is “everyone” as everyone wants to save money or we wouldn’t have presidents day sales, 4th of July sales and every other sale that retail stores can create in order to generate more interest. Everyone is interested in saving money and this is no more true than when they are buying the largest single purchase of their lives. Most people never spend more money than when they are buying a home. This leads us all to desire to save as much money as possible.

We offer conventional home sales less than they are asking and hope to get a bite but we amp this up when we are looking into foreclosures. The prices are generally below market. The danger that we run into is when we take a good deal and try to make it great by offering even lower than the asking price.

This is a recipe for people to lose more than they will ever get. As real estate professionals we need to keep this to a minimum by keeping the buyers expectations as realistic as possible. We can’t afford to let them convince themselves of something that is just not within the realm of possibility.  There was a study done years ago that indicated that each real estate agent has no more than three chances to close a client on a house successfully. After the third attempt the buyer will generally want to change something. The easiest element to change is going to be the real estate agent. If they don’t completely give up on the process they will change real estate agents.

This has little to do with the ability of the real estate agent and much more to do with the expectations of the home buyer. They need to have their desires met as the stress is building with each unsuccessful offer made. The more unsuccessful offers that are made increases the stress until they burst with anxiety and make the change that they think will solve the problem. This is not the case in most cases but they are left with little to do otherwise.

The secret is to make an offer than is in the ball park and not too far of the asking price. Making a good deal great makes a good deal for the next buyer while our buyers are still searching with one of our contemporaries.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s