Why won't the seller lower their price? I'm hearing this more and more. Um, I'll be looking at houses online with clients. Yes, I'm a mortgage lender, but I love to look at houses with clients; it's one of my favorite things to do. And we'll be looking at stuff, and we'll see like a house that's been on the market for six or seven months, and the price has never been lowered. Okay? Or they'll be like, 'Hey, I wrote an offer. I wrote like $20,000 under, but it's been on the market for 90 days.' Like, but they said no and they counted it full price. Why won't the seller lower their price?

Okay, so there is this thing which I call fake sellers. And you're like, 'What?' Yeah, seriously. So some people put their house on the market for a price that they know is crazy high, and they will sell it only if they get that price. They're in no rush; they're in no need; they don't have to sell the house. But if someone will give them air quote stupid money, they will sell the house. That is the thing, and it's more common than you would ever expect.

Personally, I'm kind of a fake seller, seriously. Like, I would never put my house—I don't want to say that because I could. I wouldn't. Like, my real estate agent knows that if someone came and offered XYZ on my house, I would sell it. I don't care enough about any house to not sell it if someone's willing to pay a stupid price for it. And there's a lot of people that feel that way about housing.

So when you see houses that have been sitting on the market for a really long time, and the seller's not willing to budge, there's been zero price reductions, that is the sign that you're working with a fake seller or an opportunistic seller. We should really call them an opportunistic seller because if they got that magical price that would make them move, they will move. But without that magical price, they are going to stay there.

Now, a lot of times people go, 'Oh, well, you have to offer what they want, no matter how many days it's been on the market.' That's not true if it's a real seller. So if, for instance, someone really wants to sell their house, maybe they bought a house in another area, maybe they just want to move, they want a bigger house, or something else like that is the time where you can offer less or get them to pay closing costs, and they're likely to take the offer. And there's definitely more real sellers than fake sellers, but sometimes what happens is a buyer will deal with a fake seller up front, and they will think that's how the whole market is.

So I am here to tell you that that is more the exception and not the rule. So signs that you're dealing with a fake seller are check the price history. Okay? Now, I know realtors love to give you guys access to their system to look at houses, but their system doesn't necessarily have all the juicy information where you can find some of the good stuff which helps you figure this out. Zillow—I know everyone in the real estate industry hates them. Like, look, they're my mortgage competition too. They're not doing a very good job, but they have good data, I'm sorry, it's true.

And I always go straight to the price and tax history because the price history will tell me, like, when was it listed? How long it's been on the market? Have there been any price drops? And sometimes what you'll see is you'll see that a seller has literally listed the house, I was looking at this last night, there was a house where I'm like, 'Oh, this is great. It's really overpriced, but it's great.' And so I went into the price history. They've listed it for the same amount for the last five years.

So if someone's listed a house at the same amount for the last five years and never done a price break right and relisted it multiple times, that's their number. They don't care to sell it because if someone's had a house on the market for five years, they're in no rush. They give 0.0 F's as to the timing on it. They want that number. So sometimes you can identify that just by looking at the pricing history on Zillow.

And sure, still write an offer with what you and your agent think is appropriate. Just don't get heartbroken if it doesn't happen because if you know you're dealing with a fake seller, then you won't get heartbroken by a fake seller.

So really quick video, but I wanted to let you guys know this is happening a lot. I see it, you know, across the country. It's not isolated in one area. We've had the media for the last two years saying if you own a house, you'll get more money than ever. Some people are slower than others, and they're giving it a try to see if they can get that huge windfall so they can retire, buy another house, whatever their goal is. But just because one person's doing that does not mean it's a reflection of the market. In most cases, if a house has been, I would argue, on the market for over 14 days and it doesn't have any offers, you definitely can negotiate. I know I would be negotiating or trying to. So of course, talk to your real estate agent about it, but you know, I do think there's great opportunities out there, and it's worth looking at. Just don't get your heart broken by a fake seller. Thanks for watching, guys

https://www.youtube.com/watch?v=U5Y1n-cm3fs&t=52s

You might be wondering why some sellers are reluctant to lower their prices, even in a market where it seems like a reasonable request. As a mortgage lender who frequently explores houses with clients, I've encountered this scenario quite often. Allow me to shed some light on the matter and provide you with insights on how to navigate it.

1. Understanding "Fake Sellers": Believe it or not, there's a category of sellers I like to call "fake sellers." These individuals list their homes at unrealistically high prices, fully aware that it might be a stretch. They're not in a hurry to sell, and they have no immediate need to do so. However, if someone comes along and offers them what they consider "stupid money," they're willing to sell. This phenomenon is more common than you might think.

2. The Mindset of a Fake Seller: In a way, I confess that I'm a bit of a fake seller myself. I wouldn't list my house at an exorbitant price, but my real estate agent knows that if someone were to offer a substantial amount for it, I'd sell it. I don't have a sentimental attachment to any property to refuse a lucrative offer. Many homeowners share this perspective.

3. Identifying Fake Sellers: When you come across houses that have been on the market for a lengthy period without any price reductions, it's a sign that you're dealing with a fake seller or, more accurately, an opportunistic seller. These individuals are holding out for their "magic price," and until they receive it, they're not motivated to sell.

4. Negotiating with Real Sellers: Now, not all sellers fall into the "fake seller" category. Some genuinely want to sell their homes, perhaps because they're relocating or seeking a larger residence. In such cases, you can negotiate, offer less than the asking price, or propose that they cover closing costs. Real sellers are more likely to entertain such offers.

5. Check the Price History: To determine whether you're dealing with a fake seller, examine the price history. While many realtors provide access to their systems, I find that platforms like Zillow offer valuable data. Focus on the price and tax history sections. Look for patterns of consistent listing prices without any reductions. If a house has been listed at the same price for years without adjustments, it's a strong indication of a fake seller.

6. Keep Your Expectations Realistic: Even if you suspect you're dealing with a fake seller, it's still worth making an offer that you and your agent deem appropriate. However, be prepared for the possibility that they won't accept it. Understanding the seller's mindset can help you avoid heartbreak in such situations.

7. The Market Is Diverse: Remember that the real estate market is diverse, and not every seller behaves like a fake seller. While this phenomenon exists, it's more the exception than the rule. Most sellers are open to negotiations and understand market dynamics.

In conclusion, don't be disheartened if you encounter a seller who seems reluctant to budge on price. It's essential to recognize the difference between fake sellers and those genuinely interested in selling. By understanding the seller's perspective, checking price histories, and keeping your expectations realistic, you can navigate the market more effectively.