Stories from the Sales Frontlines

driver100 · January 2013

The trouble with making a ridiculous offer on a house (or car) is the fact that people do get insulted and will often assume the "buyer" isn't serious.

Good point and a good story about the woman offering $2 for a $20 item.

When we were selling our house (2 houses ago), an offer came in at an "insulting" 25% below asking price. I was going to tell the agent to tell the people offering to get lost.

I jokingingly said we would come down about 2% from asking price. They then came right up to 4% below ask. So, you never know, shouldn't write anyone off until you really know.

Afterwards thought, they were nice people, just wanted to try a low price just in case....might as well try a lowball price.

andres3 · January 2013

I wouldn't consider 25% below asking price insulting in any manner shape, or form, unless the asking price was really already low (offers coming in fast and quick daily would prove it was low priced).

If a seller felt insulted, that's their loss to not take an offer seriously.

isellhondas · January 2013

We are on house number six now and after selling five houses we have seen all kinds of offers.

We have always tried to price our houses fairly and according to the market so we have been fairly firm. I think one time it took about six weeks for a house to sell and that was the slowest to sell.

If we had been offered 25% below our fair listing price I would have countered with full price back at them. THAT would be an insulting offer.

driver100 · January 2013

I wouldn't consider 25% below asking price insulting in any manner shape, or form, unless the asking price was really already low

Asking price was very realistic. 25% below $100,000 isn't too bad. 25% below $500K, gets to be insulting ($375K). I went down to $490K to show I wasn't budging much...he came in at $480 right away, and that was realistic.

Deal made, even though the first offer almost made me think they weren't serious. Some people like to test, just in case..........

driver100 · January 2013

If we had been offered 25% below our fair listing price I would have countered with full price back at them. THAT would be an insulting offer.

That was my first thought too! But, I thought , it is a long shot, but, at least if I come down a little bit, it shows I am leaving the door open. Telling the possible buyer to get lost would probably close things down right there. Hard to get anything going after that.

graphicguy · January 2013

Old adage still holds true, a house, a car, and yes even appliances are worth what someone else is willing to pay.

driver100 · January 2013

a house, a car, and yes even appliances are worth what someone else is willing to pay.

True, but, I have also seen people lose a good house, like maybe a $300K house over $10K to make a point. If the house was a good one that the people would have loved living in......then $10K over 20 or 30 years is not a big deal. The house will usually go up more than that in value anyway.

Similarly, not buying a car someone may keep for 5 years because they want to save $200 might not be the wisest decision. $200 over 5 years is $40 a year. Some people can try to be too cheap!

graphicguy · January 2013

driver....just like buying a car, people fall in love with houses. Nothing wrong with that. It's not a matter of say, a $10K delta between the asking price and what your budget can support. It's more a matter of a year or so down the road when the basement leaks, or the water heater blows, or the roof leaks, etc. All that love goes right out the window (as does the $10K you paid that you didn't have to).

I have a business colleague in CA who was all hot to trot on a condo in downtown San Jose. It was quaint. Had all the "hipness" that goes along with living in the Bay Area, while also living in an upscale 'burb.

This was somewhere around 2006-7. She fell in love with it. Made an offer at list on the spot (because the real estate agent told her the owners would be insulted by anything less than asking price). It was 800 sq ft that she paid north of $400K for (no, that's not a type).

That love lasted until the first few payments were made. Then, the financial reality of living in what amounts to be a smallish apartment for an astronomical payment.

We all know what happened in '08. She's now underwater with no way out for another decade, at least. She now hates her place, with no real way to get out from underneath it.

Same with cars. And, I've made bad deals in the past. A long time ago, I told a story here about buying a Nissan Z car, which I was in love with, from someone I knew. Needless to say, that "love" wears off quickly, and becomes a burden. If you overpay, it will linger for awhile, too.

sterlingdog · January 2013

Since we've been talking about refrigerators, I'll throw in my two cents. When we purchased this house last June, we noticed that it came with a Kitchen
Aid industrial sized refrigerator made into the wall with cabinet covers. All of the appliances here are hidden inside cabinets---never had that design before. At any rate, it's a monster and , for our first Christmas ever, the refrigerator easily held all of the left overs from dinner.

I hadn't given any thought as to how much it must have cost, but was shocked when it was revealed to me. We had the gas counter top stove switched out for an electric one---wife hates cooking with gas. When the appliance guy came to install the new stove, he noticed the refrigerator behind the cabinet doors. He stated that we had better hope that the refrigerator lasted many, many years. When I asked him why, he said that those models cost around $8,000. I didn't believe it, though I said nothing. After he left, I did some research. They actually do cost between $7,000 and $8,000. I nearly flipped. He was right. I really do hope that the refrigerator holds out for many, many years!

Richard

sterlingdog · January 2013

Why do you want to leave South Florida? I thought that everyone with a gray hair wanted to move to Florida.

Richard

sterlingdog · January 2013

"Have our agent counter at full price."

Just like cars, you have to do your homeowrk. I knew that the owner's wife was waiting for her $6 million divorce settlement. The house was part of the deal. I also knew that the house had been on the market for 18 months. I also knew that the owner (age 66) was being pressured by his future wife (age 36) to move on with the divorce settlement. She was wanting construction to begin on their new 7,000 sq. fit. house. This poor guy was being pushed and pulled in every direction. I also knew that a recent offer had fallen through because the prospective buyer couldn't get the financing that he needed. I knew that I had an edge here. It helps moving back home because you can find out all of the dirt.

:shades:

Richard

sterlingdog · January 2013

Never tell a prospect to get lost. You can always wait until you are insulted a second time, and then tell them to get lost. :P

Richard

jayrider · January 2013

It's very important to clean the coils with a brush yearly. It really affects performance and longevity. Yours are probably on the bottom. Lots of dust and dirt build-up. Get a fridge brush and get down on the floor and get to it or have a repair man or spry friend do the job. I speak from experience on this issue.

sterlingdog · January 2013

Thanks so much for that tip. I'm as old as dirt, but I can do this job.

Richard

bwia · January 2013

If you overpay, it will linger for awhile, too.

Not necessarily. In 1993 I made the sweetest deal of my life. One day I was jogging by and saw a "for sale" sign on what appeared to be a brand new home, but it turned out be a two-year old house. I called the number and was invited to see the property as it was a private sale.

I fell in love with the house and made what I thought to be a fair offer. To make a long story short that offer turned out to be above asking price. Later that evening I got a call from the seller saying that they had put an ad in the Sunday paper and they felt obligated to show the property.

That very Sunday night I got a call back from husband saying that they had accepted my offer, but since his wife was an attorney, they wanted to let me know that my offer was $5,000 over asking price.

No problem I said until it came time for bank financing. Since this was in the middle of a housing recession in Massachusetts nobody was buying, much less to pay over asking price. In the end, the appraisal came in at barely $1,000 above purchase price. The bank was reluctant to do the financing but eventually it capitulated.

My purchase was the boost the local market was waiting for. Home prices started to climb and today my house worth over three times what I paid for it. That's what I call a sweet deal.

robr2 · January 2013

We had the gas counter top stove switched out for an electric one---wife hates cooking with gas.

Really?? It's usually the opposite.

Having grown up with electric stoves, I was leery of a gas one. But it's so much easier to cook on - instant heat, simple to control temp, et al.

driver100 · January 2013

Needless to say, that "love" wears off quickly, and becomes a burden. If you overpay, it will linger for awhile, too.

I would agree, overpaying is never fun...but, it is even worse when you don't like what you bought.

I don't feel I have overpaid for any houses, except the very first one I bought....and that one was a lemon that wouldn't have been a good buy at any price. But it did teach me to be smarter in the future.

I have probably overpaid for some of my cars over the years, but they were all pretty good so I don't care...in the big scheme of things, it doesn't really matter. It might matter if I go broke and I can't afford one last bottle of $7 wine or something.

Regarding your friend, there are a few reasons why her decision to buy was a bad one so, yes, she definitely overpaid. She bought on emotion, not considering if the apartment will suit her down the road. She spent more than she could afford believing prices will always rise.

If you buy a house that really suits you, and you buy it to live in, not as an investment or to make money from it, you should be OK. Somethings you just don't know...if you will have bad neighbors, if they are going to take away your lawn to build a highway, etc. When we bought our first house we really didn't know what features we wanted and needed....I bought it because the model (which they spent about $100K on to make it look really good) looked great and the price and terms made it possible to buy. It cost me a lot more to dump that house than if I had bought a better more suitable house in the future......but, I sure learned a lot, and so will your friend.

Sandman6472 · January 2013

Well this prematurely gray haired is way past ready to move on. Tired of hurricanes, the intense summer heat which is more like 9 months worth, the crowds, the backwards state government...I could go on! After living here for well over 40 years, a new place is definitely called for. Something totally out of the box and retiree friendly, a.k.a. a cheaper place to live with things to do for folks on a fixed income. Due to my spinal issues, I'm home most of the time though the wife is pushing me to find something part time. Luckily, our bills are covered by my government pension. Time will tell though as not many will hire a 58 year old guy who walks with a cane! Would like a nice friendly downtown area with great views and year round weather where a/c is not needed.

I know this is asking a lot but I know it's out there. Always the eterrnal optimist!

The Sandman :sick: :shades:

tommister2 · January 2013

Would like a nice friendly downtown area with great views and year round weather where a/c is not needed.

Sign me up too! Where is this place?

bwia · January 2013

Speaking of cutting good deals, for those business owners and executives out there, does this story sound familiar? Read and comment

Five Warning Signs That Youve Cut a Bad Deal

According to CFO Magazine, Finance execs are always being told that their company has gotten the best price with the best terms. But how can you be sure? If you spot any of these five warning signs, chances are good that the deal isnt. Read the full article at :
http://www3.cfo.com/article/2013/1/growth-strategies_vendor-negotiation-discount- s-price-volume-renewals?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%- 3A+cfo%2Fdaily_briefing+%28Latest+Articles+from+CFO.com%29&utm_content=My+Yahoo

Kirstie_H · January 2013

Portions of my family, including my aunt & uncle who are also on a very fixed income, moved to Edenton, NC. Might be a bit close to hurricane territory for you, though they have never been hit hard. They find a TON to do there, and it's quite retiree-friendly. It was named one of the best small towns last year.
http://www.visitedenton.com/

stickguy · January 2013

thanks. *I was about to join the hit parade. In a couple years when my youngest hits college, I am more than ready to downsize (mostly my ridiculous tax bill) and get the heck out of NJ. And I am very fond of NC.

For a year, when I was little, my grandparents moved from Vermont to Hendersonville. Beautiful litle town in the NW part of the state IIRC.

Kirstie_H · January 2013

I like the area because you're within driving distance to some nice weekend getaways. Go south, and you can visit the humidity in Myrtle Beach or Charleston. North, you're in the DC area. West, you've got mountains. I will say the 4" snowfall average holds quite a bit of appeal to us too. I do like a change of seasons, but I don't like the extremes!

michaellno · January 2013

You always want what you don't have.

We've run into lots of folks here in Colorado who are visiting from Texas or Florida. They love the dry weather and cooler temps.

My wife, OTOH, wants to go somewhere that has more humidity. The dry air (summer and winter) ruins her skin and she believes that the moisture found in the SE will keep her skin soft and supple without the need of spending $$$'s on product.

We'll see - she gets her MEd next May or June and it's quite possible she'll be looking at jobs in the SE.

robr2 · January 2013

My wife, OTOH, wants to go somewhere that has more humidity. The dry air (summer and winter) ruins her skin and she believes that the moisture found in the SE will keep her skin soft and supple without the need of spending $$$'s on product.

But she'll wind up spending more on hair spray and anti-perspirant....

driver100 · January 2013

She was wanting construction to begin on their new 7,000 sq. fit. house. This poor guy was being pushed and pulled in every direction.

I am not sure I would call him a "poor guy" yet. I suppose the 36 year old girlfriend will turn him into a "poor guy" pretty quickly though.

driver100 · January 2013

Home prices started to climb and today my house worth over three times what I paid for it.

Perfect example. If the house was the right one for you the $5000 you paid extra will mean nothing in the big scheme of things.

The house has increased in value, you have loved living in it, and you will never be sorry you should have tried to get $5000 off.

Much better than going through life losing sleep over the $5000 you may have saved.

sterlingdog · January 2013

As you know, we loved Colorado on our visit there summer before last. Part of the joy was not being in a humid climate. While I can understand your wife's view, you might tell her that many of us suffer skin ailments due to the high humidity. Are you ready for this? My skin ailments are so bad that my dermatologist once suggested Arizona or Colorado. I guess that it is hard to have exactly what you want.

Though we have always lived in North Carolina, I do have to say that it is a wonderful state. It sounds as if I'm bragging, but it really is great. We have the mountains, the beaches, and the charm of everything in between. I can't really think of a bad place to live in this state. It's not perfect by any means, but based on our travels, it's the best place for us. Personally, I love Colorado, Wyoming, and New Mexico. Still, I realize that you would have to live there to really know if it was what you wanted.

Stickguy and Host: Edenton and Hendersonville (on opposite ends of the state) are both great communities. For the mountains, I love the towns of Waynesville (near Asheville) and West Jefferson (near Boone and Blowing Rock). They both have done urban renewal in their down town areas---quaint shops, restaurants, theaters, etc. Home owners have preserved the local neighborhoods---though real estate is a little high. Edenton near the coast is both historic and charming. Many towns in that area fit that description.

Regardless of where you go in North Carolina, you can't make much of an error. There are so many nice places. My favorite cities are Greensboro, Raleigh, and Wilmington. Now that we have returned home, we're only an hour from Raleigh or Wilmington. Both places make nice day trips to soak up the culture or the sun.

Richard

sterlingdog · January 2013

"...that offer turned out to be above asking price."

Just wondering. Did you not ask the price of the house before you made the offer?

Richard

cdnpinhead · January 2013

I knew that I had an edge here. It helps moving back home because you can find out all of the dirt.

Knowledge is power, every time, without fail.

stickguy · January 2013

Thanks Richard.

one of my grand plans now is for my daughter to get into NC state, and we will sell the house and follow her down to somewhere in NC (though of course, not too close to her!) to get the double advantage of lower COL, and in state tuition!

still working on the wife though. we have family still in NY, so NC of course would be farther away. But, can't have everything! and with any luck, we would start an exodus south...

michaellno · January 2013

Richard - you've always been a big proponent of NC.

My wife was born in Colorado and raised in Wyoming. She is absolutely done with the winters here.

OTOH, I was born and raised in Southern California (just a few miles from the ocean), spent three years in Arizona for college, then back to CA, and I've been in Colorado for 19+ years now.

I like the change of seasons that Colorado offers - there are really only two seasons in SoCal (dry and wet - does Santa Ana count as a third?). But I, too, am tiring of the snow and cold.

NC seems like a pretty good compromise - I was talking earlier this week with a co-worker who lives in Atlanta, and even she was telling me that NC was better than GA, weather wise.

Our week in Greensboro a few years ago was quite pleasant. We went in May, so it wasn't too warm yet and the wife really enjoyed the trip.

Hairspray and deodorant? My wife keeps her hair short, and we've discussed the perspiration issue.

bwia · January 2013

"...that offer turned out to be above asking price."

Just wondering. Did you not ask the price of the house before you made the offer?

Apparently not, but good question though. The house was so perfect for my needs that I threw all caution to the wind and made what I thought was a competitive offer. The irony of it all is that I was not even looking to buy at the time. So for I a while there I owned two primary residences.

Speaking of home buying, I am in the market for a good mattress to replace a six-year old Sterns & Foster that I bought at a bargain price through a guy who works for a high-end furniture store. In a local TV commercial for Jordan's Furniture, they are pushing the idea that your mattress should be replaced after eight years.

To prove their point they ran a vacuum cleaner on an old mattress and the years of dead skin and dust mites that were picked in the canister was appalling. That TV commercial certainly made a convincing argument to replace your mattress more frequently that you otherwise would.

Nonetheless, I probably will not buy another Sterns & Foster because the current one is ordinary at best. I am thinking of a sleep number bed or memory foam mattress but my wife does not want to spend too much on a mattress. Any recommendations would be appreciated.

verdugo · January 2013

Really?? It's usually the opposite.

Having grown up with electric stoves, I was leery of a gas one. But it's so much easier to cook on - instant heat, simple to control temp, et al.

Agreed. I talked my wife into getting an induction one (jmonroe would be proud of my convincing her.) Once in a while she still brings up that we don't have a gas stove.

verdugo · January 2013

my wife does not want to spend too much on a mattress. Any recommendations would be appreciated.

All right, I think we had exhausted the refrigerator topic. On to mattresses.

I love Tempurpedic. When we first bought ours 10 years ago they just had one model. Now they have a ton of them. Of course, the new ones are more expensive.

Not sure what your budget is, but def. check them out.

abacomike · January 2013

I know this is asking a lot but I know it's out there. Always the eterrnal optimist!

Sandman, it is difficult to find a nice place to retire where you don't pay a state income tax, where food costs are below the national average, and the winters are delightful. Have you considered northern Florida? Like Panama City, Jacksonville area (south of the city), St. Augustine?

I lived in San Diego for about a year and found the climate outstanding, but the state income taxes, auto registration (tags) sales taxes and cost of living are out of site. I agree that south Florida is difficult to live in because of the traffic, crime, and the very old drivers who can 't see or hear very well. I am seriously thinking of moving to either North Carolina, Georgia or northern Florida when my Dad passes on. I actually hate living here, but the winters are fabulous climate wise.

imidazol97 · January 2013

>To prove their point they ran a vacuum cleaner on an old mattress and the years of dead skin and dust mites that were picked in the canister was appalling.

I'm not sure what that was to prove. And I would be very suspicious of the point trying to scare me into replacing a perfectly good mattress. Most people have a mattress cover and sheets on top of the mattress. Why would there be tons of stuff in the mattress. We flip our mattress regularly to help spread the use.

I suppose you should just take your good vacuum cleaner and vacuum the mattress you have now off each time you turn it. That would be the point of the scare-mercial on TV, wouldn't it. Why would one have to buy a new mattress. Most people shed skin cells and that's a good reason for vacuuming the floor. I just can't get over the idea that a mattress holds a lot of skin cells and mites, if the case, as the reason for replacing it. Your car seat and floor probably also have skin cells and mites on them. Should we replace the car after 6 months of use?

Call me unconvinced by their commercial. :sick:

We bought a high quality, double-sided mattress from a company called Original Mattress Factory. I don't know if they are nationwide, but they make the mattresses regionally and back their product. We have bought 3 from there.

http://www.originalmattress.com/locations

explorerx4 · January 2013

A lot of states have a length of residency requirement before you qualify for in state tuition.

nyccarguy · January 2013

I'm hoping (if they want), that at least 1 of my 3 kids really likes UCONN.

driver100 · January 2013

I love Tempurpedic.

I agree, Tempurpedics are really good. The way I see it, if I am sleeping for 1/3 of my life it is worth getting a good mattress.

We went to the store and the salesman said to try lying on the Tempurpedic mattress. I was going to take my keys out of my pocket before lying down. The salesman said to keep the keys in my pocket, the memory foam will just form around the keys and you won't even feel them. He was right, and the mattress is terrific.

It seems dust mites are in almost all mattresses over 2 years old. You can by covers which get expensive. Some people do have allergies from dust mites. If you want to get sick you can read about them;
dust mites

Vacuuming will get the ones at the surface, but not much inside. I think you have to think of them as part of life....like bacteria, unless you actually have allergies.

mako1a · January 2013

For the second time in six months the generator has been called to duty. It's all automatic and will shut off when power is restored. We have 9 inches of wet snow on the ground and according to the police scanner there are power lines down everywhere. Weather guessers have been predicting this for 2 days and exactly as they said it started snowing at 2PM and quit at 8PM.
One sheriff's deputy reporting on a transformer said "it blew plum off the pole". Many folks will be needing new cars as untold rollovers and down an embankment have been reported as well. ps Mustang is in the heated garage with the shiny side up. Wife's Denali is outside buried in snow.

driver100 · January 2013

We have 9 inches of wet snow on the ground and according to the police scanner there are power lines down everywhere.

9" of snow! You're the one who should be coming to Florida for the winter. We don't even get 9" of snow back in Toronto.

Another idea is head to Costa Rica. Some neighbors who live in the Tampa area all year long can't take the heat in August. So, they go to Costa Rica for one month. Cost of a beautiful house in the mountains with a pool and no neighbors within miles is about $1500...per month!

Food is excellent, big meals cost about $4. The people are extremely friendly and good medical facilities and no crime. And the widlife is spectacular. It is on our priority list of places to go.

Good luck with the snow, hope you can get out in the Tang soon - or at least the Denali.

stickguy · January 2013

usually a year requirement. I figure that if I can't talk my way out of it, I would still get 3 years at a discount rate.

mako1a · January 2013

Costa Rica for one month. Cost of a beautiful house in the mountains with a pool and no neighbors within miles is about $1500...per month!

What a coincidence. My nearest neighbors came here from 15 years in Costa Rica. He's a retired Marine Colonel with a wife 20 years younger. Maybe they missed the four seasons. It really is pretty here in the mountains, sun or snow.

roadburner · January 2013

For some reason my wife wants me to check out the 500 Abarth; I figure that a test drive might be fun, and I do like the Abarth's raucous attitude and ultra small size. And TG's Jeremy Clarkson certainly likes it.
Honestly, I don't know what I'd buy if I was actually looking- almost nothing-new or used-interests me. Most everything strikes me as too big, bland, or both. If pushed I suppose that I'd go with a CPO Cayman or E92 M3.

driver100 · January 2013

My nearest neighbors came here from 15 years in Costa Rica.

He came back from 70 to 80 degree weather all year round, to 9 inches of snow and ice!

Sometimes though, if things are too ideal, it can get boring...maybe we always need some adversity in our lives.

driver100 · January 2013

This man owned & drove the same car for 82 YEARS.

Mr. Allen Swift ( Springfield , MA.) received this 1928 Rolls-Royce Piccadilly-P1 Roadster from his father, brand new--as a graduation gift in 1928.

He drove it until his death last year at the age of 102!

He was the oldest living owner of a car that was purchased new.

Just thought you'd like to see it. It was donated to a Springfield museum after his death.

It has 170,000 miles on it, still runs like a Swiss watch--dead silent at any speed--and is in perfect cosmetic condition after 82 years. That's approximately 2000 miles per year.

That's British engineering of a bygone era. I don't think they make them like that anymore.

Full story: Longest running car with same owner

isellhondas · January 2013

We grew up in the same neck of the woods.

Me- San Pedro

You?

andres3 · January 2013

I'm not impressed one iota with 2,000 miles per year totaling a miserly 170,000 miles.

I was 100 times more impressed with the 770,000 miles on an old Prelude sitting in the Honda Showroom in a San Diego Honda "new car" dealership.

The car was in good shape, and the sign said "still ticking strong." I took their word on that. No reason not to.

[Deleted User] · January 2013

2,000 miles a year is tough on seals, bearings, and lubrication. Age alone will make material degradation difficult to stave off. I wonder what the maintenance schedule was like? Any reconditioning?

Neat story and the car is a testament to the owner, engineers, and manufacturer.

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