Fischer: Getting the ball into the end zone in real estate
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Jen FischerWelcome to the Super Bowl LIX pregame weekend, where nearly half the nation is brimming with excitement and the other half of us are pretending to care. Don’t get me wrong, I love a good party just as much as the next person. I just cannot, for the life of me, learn to love the game of football. Frankly, I find it boring. It is far too long and drawn out. Basketball is fast moving and exciting. The ball is nearly always in play. Baseball, soccer and tennis are the same. These are games where the ball keeps moving. Football, on the other hand, seems to hold a certain irony. The entire concept of the game revolves around “moving the ball down the field.” This seems like something that could be done in 30 seconds. Instead, it lasts three hours or more with endless and drawn-out pauses between each couple of yards in which each movement is painfully analyzed and repeatedly played back in brutally slow motion. Personally, I’m more entertained watching paint dry.
The world of real estate is similar. Keeping the ball in play is key. Not only does it make for a more enjoyable game, but it can also result in a successful transaction for all.
Several weeks ago, one of the new agents I’ve been training got his first qualified client. He was a first-time homebuyer and his budget was limited. As such, there was little inventory in the price range he could afford. However, after much searching, he was able to find this buyer a townhouse that was inside the parameters and price range in which he was looking. He was ready to make an offer on the home.
This is one of the best parts of the ball game for me. Helping a new agent write his first offer is like getting possession of the proverbial ball. He has the ball in hand; now, with the help of his teammates, he must just push through all the hurdles and run it into the end zone for a touchdown.
Right after getting the ball, the first flag was thrown on the play. His client told him he wanted to go in at $19,000 below ask price in addition to asking the seller to contribute $15,000 to be used toward a rate buy-down and closing costs. He was adamant that this was a good strategy, despite the team of coaches and experienced players urging him to avoid that move. Keep in mind, this was in a $300,000 price range. This was going to be a long game, with plenty of timeouts and probably played out in overtime. Sometimes the learning curve for new homebuyers is a long game. I coached my new agent to load the carbs and keep the ball in play for as long as possible.
The first play by the opposing team was no surprise. They countered back at higher than ask price, no closing costs. This is a play I have seen repeatedly with low-ball offers. The message is this, “The offer was offensively low. We don’t want to even play in this game.”
This agent’s next play was to inform his client that he either needed to look elsewhere or counter back with a more reasonable, less offensive offer. He clearly wanted the home and instructed his agent to $5,000 higher, with $1,000 less in closing costs. The ball was back in his hands, and he ran as far down the field as he could run with it.
The second flag was thrown on the play and the counter came back at $5,000 higher than ask but willing to pay the closing costs. This was so much closer to the end zone. Unfortunately, the other team got the ball and began the run down the other direction. This first-time homebuyer decided to let the deal die and go look at other listings. Essentially, moving the whole game to a different location.
Fast forward another several days and several showings of other “fields” later, and the buyer decides to continue the play on the original field. Fortunately, this field is still available. Even though the other team had disclosed that their last offer was as low as they would go, they put the ball back into play by offering $1,000 more in list price with $15,000 in seller-paid closing costs.
Two days later, the offer was accepted. This will be this quarterback’s first touchdown. Now this, is what I call an exciting game.
Jen Fischer is an associate broker and Realtor. She can be reached at 801-645-2134 or jen@jen-fischer.com.