I just got an offer for a listing I have had since Aug. The seller was relocated & is in need to sell. We starting @ $295k but then the prices started coming down in the area (So. Florida). We then brought it down to $275k, it has been showing but no offers. There is a comparable PS @ $265k so yesterday he asked to bring it down to $255k & finally got an offer for $230k paying $5k closing costs! I think even asking for the closing is absurd. It's a first time buyer, pre-approved. My listing is a single family dwelling, the attached homes same square footage are PS at $235k-249K. What do you guys think? I know it's my sellers decision but I don't think he should pay the $5k.

How badly does he want to sell?

First-time homebuyers? Just wait for the first-time home inspection and negotiation #2. Can you spell $195,000?

Well, he wants/needs to sell.

I stopped thinking for my clients long ago. There is no telling what is going on in your sellers mind until you ask.

Then let him make up his own mind. Is the loss of an interested buyer worth $5000 in your market??????????????

Thanks, I just told him. He will think about it & in the meantime I have another showing today. I found out that the comparable PS is @ $240K. Lets see what happens, I just don't want to loose the sale & then have the property sitting there 4-ever!

What is PS(Prior sold or Previous Sale or Pending Sale)?

If it's pending sale you don't have anything yet as that property hasn't appraised for that price yet plus you don't know yet what the seller is netting after concessions to the buyer and commissions.Which is all that matters is what the seller walks away with at the closing table with the best terms to them.

You didn't bring it down enough,every time the market was going down your seller went down so your seller was just keeping at or above the market and never priced a little below th emarket so it would sell fast.

If the last sale was 2 months ago in a declining market going off of those numbers means nothing.

What you have to do is go in your mls and start from this time 1 year ago at what the average listing price and average sold was and the do that month for month until now.Put that in a spreadsheet and show the seller.What you are showing is the average percentage a month of decline in the market and the surplus increase in inventory that isn't selling.For instance if your market numbers show every month sold values are decreasing by 3 percent and inventory is increasing by 10 percent show that to the seller.

My guess is it's a fair offer.If your seller HAS to sell then take the deal because if they wait and the market declines further they will get even less.

Classic seller mistake,seller started to high in a declining market.If they would have priced it say 275k intially instead of the 295k then it probably would have sold right away.I don't work in your market but from your posts this seems to be what is happening.

It sounds like your market is declining just like most of the country, so bring up their motivation (where are they moving, why, and how soon?) then ask them to accept the offer as is. Forget trying to counter over 5K. Buyers have the power right now so asking for a 5K credit is not absurd, and both you and your sellers do not want this to fall through over 2%. If the buyer walks, you may never get another offer above 200K. In a declining market, the first offer is usually the best.

Thanks for all your suggestions. The seller accepted the $230k offer but not paying the $5k closing. The buyers realtor does not think that will be a problem. Super Realtor, thanks for your info reg showing the decline per month. My areas market has declined approx 15%+ since February. Our sellers better get the picture if they want to sell because a lot of them are still trying to make a killing. I had a listing presentation where the seller wants to list matching the highest listing price, and he only owes $80k. Now he is deciding on wether or not to go w/me due to my 6% commission. It's tough when you know the exact price that you will get offers for & the sellers don't comprehend. I am fairly new in the business & I am learning as I go. I am learning that the prices are declining fast in my area.

That's why you show them the spreadsheet with current inventory and depreciation in a years time for every listing you go to.

You can tell people things and it goes in one ear and out the other,and also when you say something they don't trust you the agent or might beleive you are making it up to get the listing.

When you can hand them something visuall with facts and statistics they beleive it as it's information from areliable third party(the mls) and any other agent should show them the same thing.

Before you even go to a listing appointment determining motivation and the why is the most critical step.If they simply aren't motivated or are listing based on what the market was one year ago you do not want that business.

I actually tell people NOT to sell,tell me I am crazy!

In my market I know inventory and sub-prime woes won't play out until thend of 2008 beginning of 2009.So unless the seller has a really good reason for selling (relocation,death,job loss,sickness,medical bills,facing foreclosure,etc.) I don't think they should be selling unless they are realstic with price.

I have a listing that started at $359K (with another agency 8 months ago) and we're now down to $249K. It's a freaking steal at that price. They paid $267K for the home 2 years ago. Seller's decision... not mine. They want to move BADLY.

Having a home on the market, even if it's priced well, doesn't mean it will sell. Too many homes & not enough buyers right now. Like SuperRealtor said, I tell people do NOT sell unless you HAVE to. Sigh.

StevenB - you are absolutely correct! While price is critical, there may simply not be a buyer for your product - heartbreaking, isn't it? I wrote an article about this last week called " Is there really an a$$ for every saddle ?"

"They paid $267K for the home 2 years ago".... The market in Florida peaked two years ago, so I am not sure how you get from $267 to $359. Maybe they should have started at $267K or Less! Since we are all chasing prices downward in your market and mine, $249 now might be too late... Not good news but, sad reality.