Why didn’t agent want to submit ‘way too low’ offer on hilly-lot home?

We accidentally visited an open house out of our price range. Obviously, the busy street, stairs and the hilly lot are unappealing for most homebuyers. That is why the home remains on the market. Our agent refused to write a low offer for us on this house. He says that he has a reputation to protect. We compromised on a verbal offer, which he made over the phone to the listing agent. The listing agent purportedly replied our offer was “way too low.” Doesn’t the listing agent have to present all offers to the seller? Why does this seller’s agent have the power to reject our offer outright?

Only in the Bay Area would a fine property that fails to find a buyer in two or three weeks be deemed unsellable.

Lest we forget, the higher up the price range, the fewer the pools of buyers ready, willing and able to buy. Speaking of pools, if there is a swimming pool in addition to stairs and a mostly hillside parcel, the number of potential buyers is reduced then again. That does not mean the property would not appraise for full value based on the square footage of the home and lot, condition, location, schools, et cetera.

This listing agent has had many conversations about list price/ selling price long before you arrive onsite. This listing agent probably witnesses her seller(s) reject at least one higher offer. I’m confident the listing agent mentioned your verbal offer to her seller(s). If a Bay Area home seller lowers their price, the rippling effect goes through over 100 real estate websites and our Multiple Listing Service. Like waves on a beach, the marketing and open houses will continue with every price reduction, aka price correction. If there is a decrease in list price, there will be an increase of potential homebuyers. In other words, a double-digit reduction to make a sale is a watery grave when a single-digit price drop will make a splash.

Full-service Realtor Pat Kapowich provides old-fashioned service within a high-tech world. You can refer Pat to friends, relatives or associates at 408245-7700 or Pat@ SiliconValleyBroker.com.