What do you expect?

Given the number of would-be sellers dedicated to "riding it out" all the way to the bottom, a slightly larger-than-normal percentage of inventory right now is estate sales. These can bring added emotional issues.

On the one hand, I know of an estate sale property priced way, way below two-month comps for a reasonably quick sale. The buyer offered far below asking anyway, but that isn't the issue. The property was full of up-to-date, high-quality and well-kept furniture. The buyer demanded that the decedent's personal property be thrown in as part of the lowball offer. It is generally not wise to assume that all estate sale sellers are "laughing heirs" who have no emotional attachment to the personal property of the deceased. You can still get a great deal in such circumstances, but generally not by spitting on the sellers. Whether you're talking about real or personal property, you can often get further by backing up an offer with a rational argument--either suitable comps for a house, or the prices of similar items on eBay.

On the other hand, if your estate property is a time- and water-ravaged dump, you should expect a bit less solicitousness. When a house looks like a you have abandoned an old person to die there in utter squalor, buyers are really not going to be worried about insulting the memory of your sainted mother.

Whatever the cause of the emotional blow-up, you can always depend on your agent to ask you the same question: "Do you want to buy/sell the house, or don't you?" Sometimes this is good advice. After all, the course of a real estate transaction never runs smooth. However, it is realistically the only advice you can expect from someone who is paid only if you close.

Speaking of expectations, I think commenters here expect their posts to appear sooner than four days after submitting them. I know Rona does some moderation moonlighting, but what heppened to everyone else?

As a seller, I try to set emotion aside and just ignore the lowball offers. I try to work with buyers within reason. If they have unrealistic expectations about price, closing, or have questionable financing I would walk away.

As a buyer, I expect the seller to facilitate the access I need to get inspections completed, etc. I also expect the house to be broom-clean at closing. However, at each of the 3 houses I've purchased, I have had to either ask for items to be removed prior to closing or I've had to remove them myself.

As a buyer, I also would never again knowingly buy a house from a divorcing couple. I've been caught in the crossfire, and it wasn't pretty.

As a Realtor, I and my fellow agents know from experience that in nearly all cases, the first offer in this buyer’s market is usually the best offer the seller will get. The problem is that most sellers haven’t either been educated by their Listing Realtor as to the price the home will bring in this market (which is usually much lower than the seller wants), and we don’t have all the facts at our fingertips to support a price. I.E., our “Comps” don’t include private sales or foreclosure sales; we only have sales information for MLS sales conducted by Realtors. 9 times out of 10, the seller’s have a better understanding of their neighborhood than most Realtors. Additionally, the owners know that most Listing Agents will take a listing at any price. In their eyes, Realtors are all the same and interchangeable, thanks to the NAR and what seems to be their goal to make everyone on the planet a dues paying Realtor!

In my former life as a major account salesperson for a Fortune 100 corporation, if I ever told one of my clients that “I won’t consider such a low price for my product as I don’t want to insult my VP of Sales”, I would either be fired by the client, laughed out of the account and/or demoted by my VP Sales. I hear this low level selling remark by Realtors all the time and it makes my blood boil. I expect this remark by used car salespeople, where buying a car is a single transaction, not a lot of money and not a complicated one at that. Realtors are there to help facilitate a deal between the parties and buyers and sellers do not and should not care about our “feelings” or making our sales job easier.

As a Realtor, I expect the listing price to be realistic and not a figment of the seller’s imagination or based upon the ego of the Listing Agent. I see homes sitting and sitting on the market with multiple price drops all because the seller and their agent were not on the same page. I see more sales falling through due to the arrogance and ego of the Listing Realtor, who either can’t be bothered to show a home because they have too many listings, don’t have the time or can’t make the time to show the home, or tell me not to submit an offer that will insult the sellers. The only way many of these old school types know how to sell is if a buyer brings a full price or close to a full price offer! The sellers don’t have a clue as to what their Listing Agent was doing to torpedo a sale.

Great job by both Sam and Marcus in outlining the kind of issues that get in the way of people trying to buy or sell real estate.

An outcome that meets the needs of both parties is the key to any successful transaction - be it real estate, or a lawn sale. I like Marcus' line, "Do you want to buy/sell the house, or don't you?" Real estate lawyers are particularly skillful employing this advice when the parties are still arguing at the 11th hour.

I know for a fact that low ball offers have offended my wife to the point where we have not countered--we have just said that clearly the prospective buyer and we were not on the same page. While I know it is "just business," my wife still takes very low offers personally. Maybe that is because we go out of our way to have our homes ready for move-in, and because we have always had success finding a buyer, even in softer markets.

In the end, it comes down to who has and uses the power in the relationship. Buyers now believe--probably rightly in many cases--that they have the upper hand, and they will use it. Four years ago, sellers made buyers jump through hoops, because there was always another buyer coming if this one didn't work out.

As a buyer, playing hardball will get me a lower price, but it may cost me the deal. Hardball works only if you are willing to walk away from the deal. Again, depends upon who has the power. Remember that NOT having to make a deal provides quite a bit of leverage.

But do the real estate "professionals" help defuse these tensions, or ignite them? A lot of deals feel like a game of "library," where you whisper your request to your agent, who whispers it to the other side's agent, who whispers to the attorney, who whispers the now-hopelessly garbled message to the other party. Now your reasonable request to split the cost of fixing a leak is communicated as an outrageous demand for the seller to fund a new master bathroom and give you his dog.

I've sold property where I didn't care about the closing, and let the buyer dictate the date. Weeks went by, then suddenly she realized her rate lock was going to expire a week earlier. We had already booked work vacations, movers and auction companies, and could not move our dates, though we did try. Rather than politely telling her she had been a clueless idiot, and prompting her to just ask for an extension (which she immediately got when she came to her senses), her realtor instead stoked her sense of outrage and convinced her we were being "inflexible."

You hit on something that always irritates me. The terms "good value" or "good deal" are stupid. The fact is that everything sold on the open market shows exactly what something's worth, no more, no less. If the item, whether it be real estate, or any good or service, is really a "good value," then why didn't the seller get more on the open market?

I think a better term is "fair value" in that both the buyer and seller agreed to a fixed price.

As a recent seller, I was fortunate enough to show my place 3 times, receive offers after each viewing, and to close on my property 3 weeks after signing the P&S.
I disagree with the comment about the first offer being the best, that's not always true. In my case it was an extremely low ball offer. My initial reaction, how insulting! I got over that in about 5 seconds. The couple who offered were looking to pick up a place cheap, and gave it a shot with mine.
I made a reasonable counter offer and they passed. The next two offers were at full price. In addition I had two additional parties trying to see the place while the sale was pending.
I had a 5 year old townhouse style condo that was in pristine condition, with many upgrades in a scenic setting but close access to major roads. The key to my quick sale?
I priced it right. I held my nose, and swallowed the money I spent on my upgrades. I hoped they would set me apart from comparable properties. I set the price low but with wiggle room to go lower if need be. Fortunately, I didn't have to. I did walk away with some money in my pockets, but considering what I spent on the upgrades - I really just broke even.

Its easy, remain open minded and take nothing personal. Most sellers and buyers remain on better terms when all interaction is reserved for the closing. An offer is an invitation to negotiation. I've seen offers at 30% below asking price come to within 5%. If a seller really wants to sell they'll stick in there. Same for buyers. It doesn't take long to find out if someone is committed to a deal. Do not overprice your property, buyers won't even waste a trip to view your property. Sellers comps are facts and numbers don't lie. Lastly, sellers keep your homes clean and uncluttered for showings.

I make offers based on condition of the property and comps, nothing more and have never low balled anyone. I have written into every offer that we will inspect the home the day of closing, everything previously agreed upon must be complete and receipts provided. I also state, in writing that the property must be completely vacated and professionally cleaned prior to closing. It happened one time that the sellers had to request extra time for closing as they thought we would cave - didn't happen.

I learned to do all this the hard way, by closing on a house (an estate sale) that had been left full of trash.

just had a chance to read last week's entry on "value." what utter chum. whether a property's characteristics meet your personal needs has nothing to do w/ "value." a relative value range can be ascertained from metrics and comps. rona refers to this process as doing a cma. how agressive you are in that range or if you're able to expand it is the art.

one sales price also does not define "value." if you are unable to replicate the sale than you do not have a true expression of value, you have one abberational data point for others to consider.

as far as expectations from buyers or sellers we have none. i agree w/ perseptive, if you have anything that you require as part of the deal contractualize it. otherwise learn to separate annoyances from game changers and don't sweat the small stuff. walk if there has been a fundamental change to the deal you bargained for.

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