Here lately, I have noticed a lot of AMP binding the hands of their AM's with policies that come down from upon high. One policy in particular just absolutely amazes me and that is, always counter first with the list price.

Believe it or not, I have been told, witnessed and experienced some AMPs that are telling their AM that their first counter must be at list price. I know....you are taken back because, as experienced agents, we know that this policy is in many instances an immediate reject by the buyer. There in is the problem.

You see, I have had several AMs tell me, we can and will negotiate but, we can't do that till we have satisfied the policy that we must first counter with list price. Ok...so, does that mean I can tell the buyer's agent to ignore the first counter?

People expect to haggle and when you counter at list....on the first counter....or any counter for that matter, it appears you aren't going to haggle so, instead of staying in the fight, the buyer walks. The reality is, competition for homes isn't happening and if it is, the property is well priced or highly desirable and with as much inventory on the market...I would say it's likely well priced. None the less, the days of a seller playing hard ball for the sake of playing are over.

For the AMP policy makers, let me give you some good advice..........STOP RESTRICTING YOUR AMs. If your AM team isn't good enough to haggle on their own without you making some silly policy, then fire them and get you some new ones.

Yeah...yeah, I am sure the hate mail is going to flow on this post but, the reality is, between the experienced Realtor and the experienced AM, you should be able to get FMV (FAIR MARKET VALUE) and if you are not.....stop and ask yourself why. If you think the answer is that you need to add policies to tell direct your AMs reaction or to show them how they should be doing their job, then I have to ask....are you sure you got the right AM? Are you sure you got the right Realtor? Better yet, are you sure you got the right BPO / Appraisal?

Let's start having an honest discussion on why you can't get an offer at your list price before you start thinking you need to tie the hands of your liquidation team.

Just a thought.

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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • Lot's of buyer frustration out there and who can blame them. There are certain AMP who are notorious for overpricing, ridiculous counter offers and then end up selling the property for much less than the first offers or sending the property to auction and getting a pittance for it. Hard to understand their thought process at times.
  • Great post Jesse & comment Tony! I am in the middle of negotiations currently with a cash offer (no seller paid buyer close costs). Buyers original offer was 95% of list price. Sellers counter: List price. Buyers have withdrawn negotiations. FYI: Buyers original offer exceeded BPO value submitted. Seller's have 'bought back' the property at above-value pricing. Nice work Mr. seller. Perhaps the buyer will reoffer after your price-reduction, which is likely to be less than original offer. Or not! 



     

  • Jesse,
    Great post.
    The policy you speak of is one of the most frustrating ones that I encountered as an Asset Manager. It makes absolutely no sense to me to counter at list price. Technically speaking, list price is the offer to the buyer and the buyer counters that marketed price with their own, and so forth.
    I have had quite a few buyers never return simply because they took it as a refusal to negotiate. I have also spent many a conversation explaining this policy to agents.
    I was fortunate that I worked for clients (banks) that allowed me nearly full authority when it came to managing their properties. Those that didn't give this authority to their AM's always had poor turn around on their listings and higher DOM.

    You're right, give them the freedom to do what they are there to do!

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