Buyer’s Market? May be, but you still have to play fair.

Today an unusual thing happened, I received two offers on two different listings. That in itself would not be unusual in the Denver real estate market, but it’s what came with the offer I found odd and amusing. This morning, two emails hit my inbox. One was the offer, $110k below the list price, and the other was a letter from the potential buyer to the seller. This afternoon, the same thing happened: 20k under a list price that had a generous price reduction on Wednesday, and a lovely card to the seller. Now I am the queen of the hand-written note and I know it’s value, but in both of these instances it was as if the “I really love your house, we are the perfect buyers” missive was going to somehow cover the insulting offer. If you really love the house, you should pay what the house is worth. A letter that says in essence, “I found the house I love, now can you please give it to me?” does little to sway the seller away from his or her profits.
Buyers buy homes with their emotion first and practicality second, sellers are just the opposite. I know this is a sweeping generalization, but most of the time it holds true. A home is an emotional commodity and yes, most sellers would love to see their home go to that sweet young couple of lovebirds with the 20% down, the golden retriever and th 850 credit score. Chances are very good that the seller has had his own emotional roller coaster ride long before you set your showing. Ready to make that move, they’ve called their Realtor, had the listing appointment and swallowed hard when their agent told them what they could expect to sell their beautiful home for in today’s market. When they’ve lowered their price twice in 60 days, is it realistic to expect them to take another 20 or 100k off the top because you love their home? I’d love a new Mercedes for the price of my used Saab, too.
In short, be reasonable. Be fair. Don’t believe everything you read about the “Buyer’s Market”, assuming every home is on the clearance rack. And save your letters. We know you love the home and felt all warm and fuzzy when you walked into it, that’s what writing an offer means. Now write the offer that will match that value, and don’t expect the seller to pay for your dreams out of their retirement.