The Panama City Real Estate Blog: Reverse offers, Who uses them??????

Reverse offers, Who uses them??????

 

Anyone ever try a reverse offer?  Here is how it works:

You have a showing on one of your listings and they request a second showing.  After the second showing we feel that there is enough interest from the buyers since they wanted to look again.   We collect feedback from the buyers agent and discuss with the seller.  At this point if the buyer has not made an offer, we have the seller present a reverse offer based upon the feedback.

Example:

The feedback says that the buyer thinks the price is right but the home needs carpet and paint.  We fashion an offer from the seller with the price we think the buyer will pay and offer an allowance for paint and carpet. We present to the buyers agent and most times the buyer is surprised since they did not expect a reverse offer.  This makes the buyer really think this out and might just help them choose the home.

Anyone have any luck with these? We sold 2 homes in 2007 with reverse offers and got some interest with a few more.  I will be trying these more in 2008.

Check out my website at www.knowpayneknowgain.com

Jeff Payne, Broker Associate
The Payne Group at Keller Williams Success Realty
www.KnowPayneKnowGain.com
850-392-1770 Office
850-890-0132 Cell

 

22 comments • Jeff Payne, Panama City Real Estate • February 24 2008 11:45AM

Comments

Jeff, I did my 1st 1 yesterday on a my listing. The buyer went back a 3rd time, so I asked my seller if she wants to present the buyer with an offer and guess what, it worked!!!!! The buyer responded although it was countered but we got a deal. Come to find out the buyer as of Monday I found out from the other REALTOR was putting in a offer on a New Home and was torn between the two.... I think if we didn't act on it we may have lost a buyer. I am going to be doing MORE of these from now on. John  
Posted by John DISQUE "Buy or LIST with DISQUE" (Coldwell Banker Prime Properties) about 4 years ago
Great job John, as soon as you get that second showing there is blood in the water and we need to circle around!!!!   
Posted by Jeff Payne, Panama City Real Estate (The Payne Group at Keller Williams Success Realty) about 4 years ago
Yes we used this once last year.  It was for a pair of buyers that were being represented by an attorney...why could not fill out a Purchase Contract from our local board to save his life!  We changed the wording on the standard offer contract and it was great.  Again we only did it to ourselves the hasstle of a TWO PAGE addendum to fix his mistakes!  I can see how it would be great in your situation and we will use it this year as well.
Posted by Michael Ramsey Fujita RA SFR & Gayle Fujita Ramsey RA SFR (Hawaii Real Estate Online (808) 630-1828) about 4 years ago

Jeff,

Nice twist on initiating a contract.  I can see the legal minds scratching their heads.  New buyer agency contracts to now include that the buyers agent must present all offers to the buyer.  You may have just changed the world of real estate!  Good post.

Posted by Mike Gambino GRI (Prudential Patterson Realtors) about 4 years ago
This happens around here a lot but we did not have a name for as far as I Know. I have done it myself but have never been successful wuth it.
Posted by Thomas Santore-Realtor®-ABR-Land Seller Westchester-Putnam County Real Estate (Coldwell Banker Real Estate/Coldwell Banker Commercial NRT) about 4 years ago
It is very creative concept.  I will try it and see what might happen.
Posted by Gary Bland R (S) E-Pro, ABR (Hawaii Life Real Estate Brokers) about 4 years ago
I have never seen anything like this but it sounds very interesting. Great post I am forwarding this to all of my agents. Thank you Jeff!
Posted by Sonja Babic/PRIME Realty & Development, LLC about 4 years ago

What a great idea.  That is definitely "thinking outside the box."  I haven't tried it yet, but will keep it in mind.  You can get more great information from my web site.  Just visit www.dallaschambers.com.

Thanks for the post. 

 

Posted by Dallas Chambers (RE/MAX Agents Realty) about 4 years ago
Great idea!  I will start using this in my listings as well.  Glad to hear it's working for others too.
Posted by Jason Grams (none) about 4 years ago
Jeff, I love this idea and it's incredibly creative and shows you're looking out for your client.  I haven't had a situation where a buyer went a second time and didn't write but I most definitely will consider this strategy should it ever come up.  BRILLIANT!!
Posted by Irene Morales Ward, Realtor, ABR, e-Pro Northern Virginia Real Estate (REMAX Distinctive Real Estate, Inc.) about 4 years ago

We're in one right now on a vacant lot.  I did it once in 06 after receiving "dirty carpet" feedback.  We have a company here that will clean your carpet once a month for free after the initial cleaning so we added it to the offer and it worked.  Detailed feedback is round 1 of negotiations as far as I am concerned.

Posted by Amanda Hall * FORT WORTH TEXAS Real Estate Broker * (Hall Team Homes) about 4 years ago

Awesome Idea Jeff - never heard of this - I will share this with my Jeff! 

Sincerely,

Grace

Posted by Jeff & Grace Safrin, Broker / Owners, SFR, CRS, Northwest Indiana (F.C.Tucker 1st Team Real Estate) about 4 years ago
Jeff, I have never heard of this technique but it is very proactive and creative. I would like to learn how well it works. It makes sense. Kind of like dating. SOMEONE has to make the first move.
Posted by Gary Woltal - Assoc. Broker REALTOR® SFR Dallas Ft. Worth (Keller Williams Realty) about 4 years ago

All part of the reason for feedback.  Folks forget what a good tool this is.  Welcome back to the old market:) Good reminder, or idea for the newbies.

It's a Good Life!

Fran

Posted by Frances C. Rokicki, Broker~Mentor,CRS (Fran Rokicki Realty, LLC) about 4 years ago

Jeff...I've been around a long time and have never done this and have never heard of anyone else doing it either.

Thank you for sharing this with us.  I will try very hard to pull this out of my hat if I have the opportunity.

Kathleen

Posted by Kate Elim, Realtor® 540-226-1964 Selling Homes & Land at LAKE ANNA about 4 years ago

This sounds like it could work here. When people look for the 2nd or possibly third time that does show motivation. An offer to them would at least show there is motivation on the part of the seller.

Posted by Robert L. Brown~Grand Rapids Real Estate Bellabay Realty, West Michigan (www.mrbrownsellsgr.com) about 4 years ago
Never thought of it, but I like it! 
Posted by Chad Baird (Re/Max Spirit) about 4 years ago

Verrry Interesting!  I have NEVER even heard of a reverse offer, but it is genius!  Do you usually call the Buyer's Agent before you write up the contract? 

Posted by KERRY LUCASSE - Your Intown Atlanta Real Estate Consultant (Nest Atlanta Real Estate Group - Ian Marshall Realty) over 3 years ago

Thanks for sharing.  I hope you don't mind, I'm going to share this with the Keller Williams group on LinkedIn.

Have a Happy and Prosperous New Year!

Brian

Posted by Brian Gaverth, Realtor(r), CDPE(r) (Keller Williams Realty) over 3 years ago

Brian, feel free to share.  You going to Family reunion??

Posted by Jeff Payne, Panama City Real Estate (The Payne Group at Keller Williams Success Realty) over 3 years ago

Do you just use the normal purchase agreement you would prepare in a "normal" offer?

Posted by Brian Powers (Keller Williams Macomb St.Clair Market Place) over 3 years ago

Great post, I am seriously considering this and a team member of mine actually closed such a deal.  Different times call for different measures.  Creativity can bring about a win-win, and reverse offers is about as creative as it gets.

Posted by Mike Nastri Franklin TN Homes (Keller Williams Realty) over 3 years ago

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