With only 1.47% of our oceanfront inventory selling per month, yesterday's FANTASY pricing is so far removed from the reality of 2008, that I don't even write offers anymore, I just dial for dollars. Let me explain.
Take the following example:
Oceanfront in Myrtle Beach - Baywatch Resort - The Fantasy vs. The Reality:
The Asking Prices (THE FANTASY) are as follows:
Efficiencies: $ 109,000 - $ 209,900
1BR/1BA: $ 187,000 - $ 248,999
2BR/2BA: $ 289,500 - $ 504,900
3BR units: $ 379,900 - $ 637,900
The Prices of Units Actually Sold (THE REALITY) is as follows:
Efficiencies: $ 69,000 only one sold during the past 6 months
1BR/1BA: $ 164,900 - $ 205,000 5 sold during the past 6 months
2BR/2BA: $ 289,000 - $ 318,000 4 sold during the past 6 months
No 3 BR units were sold at Baywatch during the last 6 months.
As you can see, the discount on the efficiency is between 36.70% and 67.13% !!! Buyers and Sellers are SO FAR APART, that it doesn't even make sense to write offers anymore. I just call all the listing agents of particular products I am following for my investor clients and make verbal offers. Most agents know me and like working with me. They typically keep me in the loop and put "deals" on my lap the moment they get them.
Yes, the Sellers may WANT $ 109,000, but when those bills hit and they are having a really bad day, they typically call their Agent asking about any "bites" on the unit. The Agent will remind them of my low offer. Catch the Seller at the right time, and "Voila!" you have a deal!
Here is the Conversation:
Listing Agent: "Mirela, do you still have that Buyer who wants that efficiency for $ 69,000?"
"Yup!", I answer.
"Write it up; Seller will take it now".
I deliver the goods within the day. We can close within the week. Seller stays out of trouble and Buyer purchases at the correct price. A lot of my investors pay cash.
Clean, simple, everybody wins. The market is what it is; I just know how to navigate it for the maximum bang within the time restraints of my 14 hour workdays!
Oceanfront Condos in Myrtle Beach by Mirela Monte