Preemptive offers: when they go low, we go ‘meh.’
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The personal stories of one Realtor’s battles and triumphs in the highly-competitive Bay Area Real Estate Market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
No sooner had our newest listing hit the market, when an unexpected offer was dropped into my inbox from an LLC specializing in real estate investments. While preemptive offers are usually presented by highly motivated Buyers who are hoping to shut out the competition before the Sunday Open, this one was anything but . . .
To be clear, I’m rarely offended by offers that fail to meet expectations, but in this case, the offer was so far below the list price that it went beyond offense into the world of incredulity. Does anybody really fall for this bottom-dwelling practice? (I certainly hope not.)
Certainly, given the speed with which it arrived, the submitter hadn’t had time to visit the property OR to run comps, or to review and accept the Seller disclosures – a must for anyone offering preemptively. (A preemptive offer is one that arrives before the set offer date.)
“I also got one of those funky, lowball offers last week,” came the chorus from several of my colleagues when I voiced my extreme displeasure. “That company is sending them to all of us to see if anyone bites.” (Not on our watch.)
Unfortunately, there doesn’t seem to be a way to head off this kind of predatory activity. Consequently, as Realtors®, we’re required to present any and all offers within 24 hours of receipt, so instead of reassuring the Seller that their home has been warmly received, we’re immediately forced to present a poorly intentioned offer that devalues their single-largest investment. Followed by having to quickly calm and reassure the Homeowner that this ridiculous attempt in no way represents the likely outcome for their wonderful property. It’s not a great start to the marketing period, and one I’d rather avoid altogether. (Sellers, don’t bite!)
LLC or not, if you’re going to write immediately out of the gate, your offer has to be so strong, and so clean that it leaves little doubt that the home would fetch more on the open market – and that’s hard to do. Without market testing a property, nearly every Seller wonders if there’s more money to be had by fully exposing the home, and the truth is, we’ll never know. But in this case, there’s absolutely NO doubt that higher offers will be forthcoming, or that our time could be better spent. So please, please, PLEASE do me a favor and keep your crappy offers to yourself. We don’t want or need them.
Because when it comes to bottom feeders, I firmly believe they belong on the ocean floor, OR alternatively, boiled and served with melted butter. That’s the only time they’re of any real value. (My apologies to the lobsters out there.)
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Julie Gardner & Sarah Abel | Compass Realty
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