I`ve written many times in the past "How price dictates the Real Estate market".
Selling a home in today's market is a challenge,but it can be done,providing you`re Realtor fully understands the market and is "upfront" when it comes to pricing the home properly. In the last two years, we learned the hard way about pricing a home. I have given back 3 listings to former clients who refused to listen to me or accused me of being the problem for their home not selling.
I wrote New Rage sweeping Sellers! "Let`s Play the Blame Game!" and Sorry we don`t guarantee the sales price of your home. in response to the change in the Real Estate market and conditions which affect it.
Yesterday, we had a potential seller who purchased an investment property located on Biscayne Blvd in Miami,Florida.It`s set to close in two weeks. The Investor paid $485K for the unit and placed $50K in escrow. It was her belief she could "Flip" the property for a profit upon closing.
She was "Gung Ho" about the area, although she knew quite well, the area was "borderline" and gentrification was just around the corner. Famous last words!
She called us to ask if we`d list the home for $585K. The comps in the area for a 2bed,2ba, condo with 975 SF under A/C are closer to $355K in today's market. The builder was able to convince these "So Called" investors the wrap around balcony should be considered living space,they sold the units as 1400 SF to these investors. I`m thinking PT Barnum to myself as she explains her circumstances.
The conversation is as follows:
Investor Extraordinaire: We need to sell this property fast! I would like to net $60K.
Me: I wish I knew a better way to tell you this,but the property isn`t worth anywhere near your asking price, the square footage is too small.
Investor Extraordinaire:What are you talking about? The builder told me the resale value on these units have gone "Up,Up and Away". In fact there are people lining up to buy them.
Me: The builder is not telling you the truth! In my opinion they want you to close and will say anything. There isn`t a closed sale in this building,to justify the price, we`re going by actual sales in the area!
Investor Extraordinaire: Forget it, we`ll find someone who knows the "Value" of my condo! You apparently don`t!
The South Florida condo market has an absorption rate which is extremely high! It will take years to absorb. Many people will walk away from their investments,realizing they`re not going to be able to afford maintaining the cost of these homes.
Yet, there are "Dreamers and Schemers" out there providing a circus like atmosphere for people to continue having these fixations of "Getting Rich Quick".....
Full Service Discount Broker specializing in Short Sales and Foreclosures throughout Florida. Buying,selling or renting in Broward,Miami-Dade,or Marion County give us a call today! Broker/Owner.
Zestimate and "My friend the Realtor" make a huge mistake!
Why are you pressuring the client into buying a home?
Best Pizza in Broward County Florida.
Potential Fireworks between "Buyer and Seller`s".
If you clean it, I`m positive it will sell... Our "Field of Dreams Story"....
Florida List For Less Realty,Inc. Active Listings week of July 1st,2008.
Seller objects to a $900 settlement with lenders! Blames everyone for "Not doing their job"..
Don`t be Shy. Potential clients need to know you`re capable of selling their home..
Presentation is crucial when showing you`re home!
Active Listings for Florida List For Less Realty,Inc. Week of June 21,2008.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
She actually fell for the old let's count the balcony in the square footage? At least in Florida you can enjoy a balcony for more than a couple of months out of the year.
PK,
She`s not the only one. Believe me,this is widespread in South Florida.
Sellers need to get "real' about the price they want to sell their home for and it's worth ! Until that happens we will be stuck in the rut we are in right now !
MG,
You`re right. It seems it`s everyone`s problem except theirs!
We are seeing more and more people walking away from their deposit because they do not want to close as the values have gone below what they were going under contract for or they can't afford to close with the rates the way they are.
I lived in Delray Beach for 16 years before selling out after Hurricane Wilma to move to Georgia. All of US1 in my area was being converted to Condo's and Brownstones with people lining up for days before the builder would have their 'Builder Blitz' sale and people couldn't throw their money down fast enough. Now I imagine those condo's never got built......I haven't been back there but I cannot imagine that people can afford upwards of $600K for less than a 1000sf of living space with shared walls.....I on the other hand was fortunate enough to find a beautiful home in Southern GA for a third of the price I was able to sell my house for in FL and I'm loving living in this small community. We don't yet have condo's here basically because this is not a retirement community.....our median age is 29-45. The concrete jungles have taken over south florida, that's one reason we got out.
Tina,
Delray is experiencing the same problems as all of Florida has. People can`t afford to close and are walking away as Neal indicates...
Neal,
It will only get worse, the banks aren`t helping much either now..
The builder toldme... My aunt MInnie told me,,, MY grocer told me... Every time the conversation starts out that way I want to say why don't you ask them what to do next time you have a chest pain. If you have a chest issue see a doctor, If you have a home issue see a realtor
People believe what they want to believe. Unfortunately this investor better be in it for the really long haul!
Yep... It's a shame all these folks were sold a "bag of crap". She needs to write off the 50k and not close on this unit. Why throw good money after bad?
Scott I met a couple that wanted to sell their home after a year. The builder told them ALL the upgrades would add value. The builder is now selling their floor plan just down the street at 219K and they paid 283K
Charlie,
I had a client who we advised to look at a Rental as a plan B yesterday. She was upset with the very idea,I thought she wouldn`t qualify for a mortgage.
Guess what?! After berating me,she called us back three hours later to inform me "She secured" a rental.
Nice...huh?
Gary,
How many people are really thinking long term
BB,
I agree, she doesn`t..:(
James,
The builder knows better than we do...
there's always a value to living on the water but when the real estate keeps going up in altitude then the high inventory helps devalue those units that were once so pricey
DP,
Not to mention how difficult it is to deal with condo`s and their assoc.
Scott, your reference to PT Barnum hit the nail on the head. You're smart to stay away from people thinking they are going to flip in this market by purchasing new construction...
Joe,
Been there done that with people who seem to believe they know better than professionals who do this for a living each and every day..
Juan, your post was almost exactly what I was going to say to Scott... that it is unfortunate that some sellers seem to "get it" and lower their prices, but only after you have parted ways and the new agent gets the commission. I took over from another agent and benefitted from the seller lowering the price. Even in this market, it took just one day to get an offer that went to contract. My conscience did bother me, but when that first contract fell through because on the inspection and then I worked a couple more months and made sure all inspection shortfalls were cleared, I felt that I earned my commission.