Powayseller your strategy is not bad. The basic tenet is that you are committing to only dealing with 1 seller at a time. Usually the most successful people in real estate, or any business for that matter are the ones who walk away from deals that do not suit them 100%. Alot of the most basic problems I see are that people feel that they “have to” do something and in reality I do not think that is true.
It really is just all about patience and the willingness to look and look and look and make offers over and over and over again. I know some people who are doing that right now, in fact a couple of posters here on the website.
Stan –
I absolutely agree when you hold the strongest hand you do dictate the terms. However (and other realtors can comment here) if you were a listing agent and an offer came in with someone saying they have multiple offers to other clients, how would you view that offer? Obviously my advice to my seller would be well, you can take it, but don’t be surprised if it crashes and burns.
So if the seller is in deep trouble, they will probably accept your offer correct? The question is, would this work in a short sale? Maybe but maybe not as there are other parties that need to accept an offer on a short sale besides the seller. However, the problem is that this is not the case. If it was the case then why were cancelled, expireds, and withdrawns so high rather then sellers repricing agressively or accepting very low low offers through 2006? It is because the psychology of most sellers is still in the denial phase. Lots of stages of grief and we are still in the very early stages here. Also many a desperate listing agent who wants to retain that listing next spring most likely told the seller to not worry and relist in the spring.
I am not saying your tactics do not work, nor am I saying there is nothing complex about it. Indeed you can write up a purchase agreement any way you want to, and inform the listing agent of your intent. You can write letters to owners and go for unsolicited offers.
My method is not any different then what any experienced realtor would do. That is contact the listing agent and let them know you are submitting an offer. As a courtesy I would let them know the offer is going to be a low offer significantly under the asking price. In all probability they will most likely tell me not to even submit the offer. This has pretty much been the case this past year. If my buyer instructs me to do so, then I track the property, as time progresses it will most likely reprice, expire, or cancel. Again, if the buyer instructs, I can contact the listing agent regularly to let them know we are still out there. When the listing does expire or cancel, (again if the buyer wants) send a letter or an unsolicited offer via personal mail to the owner of the home.
There is nothing unique here. All I am saying is you play the hand the same way, utilizing the leverage in the changing market, yet you do it in a way that portrays your unique interest in this home. Contrary to what many people think, the majority of Realtors do want to try to get all deals done, so a lowball offer that is sincere and portrays undivided interests, verses a lowball offer that comes as a “hey here is an offer but there are 3 others I have made so I may bail at any time” is more likely to be taken seriously from the listing agent.
