"However, in most cases – especially if the buyers are not first-timers – these offers are really only intended to be opening gambits in a negotiation, and expected to draw counter-offers from sellers," says Berry Everitt, CEO of the Chas Everitt International property group.
"This is why it is critical now for sellers to work with an agent that will submit all genuine offers to purchase – no matter what he or she may personally think of those offers – and can properly assist them to negotiate with the buyer."
Sellers often regard low offers as personally insulting and may even blame the estate agent – which is why a lot of agents will actually refuse to even write offers they think their clients won't like, he notes.
"But it is still up to the property owner to accept, counter or reject an offer – not the agent – and in the current climate, sellers need to know that even a low offer is better than total lack of interest, because it at least has the potential for negotiation and a satisfactory outcome."
Writing in the Property Signposts newsletter, Everitt says home sellers also need to know that, given the fact that the market is still oversupplied, buyers who are ready to make a commitment now will most likely just move right on to the next property if their first bid is flatly rejected. They will not try again with a better offer.
"Consequently, home sellers must be especially sure now that the agent to whom they give their mandate has superb negotiating skills as well as excellent marketing capabilities.
"After all, it's no good hooking buyers unless you can also skilfully land them."
Readers' Comments Have a comment about this article? Email us now.
I agree totally that the agent should take whatever offer he/she has to the seller.
These days, agent talk sellers into the selling price and in order to save their reputation and obviously earn their much-needed commission in this market, they tell prospective buyers that the seller will not even look at a low offer.......I find this extremely unethical.
We recently sold our property and dropped our selling price by about R300 000 and sold for R150 000 less than asking, but then again we got a cash offer and we were in a "had to sell" situation, but the agent was told to bring us whatever offer she received, it was then up to us to decide if we wanted to counter offer or flat out say No to the offer.
Agents need to play fair, they need to inform sellers that they are obligated to bring all offers to them and that it does not reflect on their home...but that is the way the market is operating at the moment.
We are trying to buy again and I am fast loosing faith in the agent in the area we are looking, I have been told a couple of times that lower verbal offer will not be taken to the seller.
I think some ethics need to injected into the property market.
What can one do with this problem?? – Saroj Chase
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