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
http://www.myrtlebeachhomes.us/
hhhmmm, big differences on actuality and listing prices. Looks like some people need to come down to reality.
Sean Allen
OH..... By the way ..... Don't recall ever seeing someone with rollerskates out on the sand before. Refering to your Meeze photo.LOL
Sandra: I agree with you, but after writing about a dozen "little beasties" in vain, I got the message... "The Little Beastie" cements our verbal agreement.
Chadd: Thank you!
Suzi: Me too!
Sean: It is a big difference isn't it? How is it in your market? By the way, were you not impressed by the can-can? You didn't say anything about that.
Lovelt Can can. LOL ..... I thought you were exercising. Tells you what I know about dancing.
Sean Allen
Sean: Your e-mail program is awesome. I just signed up for it. You are a smart man! You do all your blogging on that. Your royalty checks are pretty good every month, no?
I love it! Thank you for your due dilligence and your marketing! You are a smart man! I've added you as associate and I'll send you some business. I'm sending you a developer tomorrow.
Laurie, I like the way you encapsulated everything!
Debra: I don't have patience! I just keep knocking on doors... Only a few open up for me...so I keep knocking on more. That's the only way I can do the numbers...
One of the offers I wrote this weekend was for over $ 100,000 less! The seller didn't take it, but lowered the price by $ 50,000. I'm now negotiating with another seller... VERBALLY! Just in case you are wondering about the asking price: it was $ 389,900 and we bid $ 280,000... almost a 30% price reduction. That IS the correct price though, and another Seller will take it.