I remember the good ol' days when the discrepancy between the Buyer's offer and the Seller's asking price was measured by mere thousands of dollars, signifying 1%-2% of the property's value. That disparity was like a little puddle of water we used to quickly and easily jump over and put the deals together.
Today I presented an offer to the bank for $165,000 less than the original asking price, a 34% reduction in value. Ouch! My advice: "Take the offer!" With 20 other properties competing for the same buyers and only one sale effected within the neighborhood within the last 6 months, we are lucky to get this offer.
Have I succeeded in convincing the bank to take the offer? No, not yet! I've sent them my reports for the neighborhood. I've made a very compelling argument. Tomorrow I am going to take pictures and shoot video showing my seller (the bank) other similar homes in the neighborhood that are offering just as much for less money (other REO's).
I hear the same thing from my bank clients that I hear from my other sellers: "But I need to make this much..." Dear Seller, your needs will not be met in this market! Your wants, needs and must haves, are completely irrelevant to the Buyers!
Dear Seller, I DO care about you and your property! I FEEL your pain! My commission is significantly reduced when the price is slashed. But if we don't get the job done now, we might not get a similar offer again. EVER!!! We might join the legions of other vacant homes just lingering on the market and deteriorating from the elements. The longer a property remains in that state, the harder it is to sell it, and the less money it will garner.
Aah, the good old days of the puddle... Now we have oceans to brave, stormy waters between Buyers and Sellers...
11 comments • Myrtle Beach Real Estate by Mirela Monte • February 25 2009 10:29PM
Gotta be sharp today to morph and take advantage of the market(s). You're right...it's not days of yore or yester year. Only the storng survive....
I LOVE this blog! It created itself in my head throughout the day. I almost didn't go to the gym in order to write it, but I needed the exercise to clear my head after today's many "trials" (this is but one of the issues I was dealing with today).
There; I said it! I feel better now!
Mirela, this is a fine analogy of your dilemma! It seems that the oceans are getting larger and larger. Such a shame! Very very good post!
...oceans indeed, but I trained to be a good swimmer, and I see the shore ahead ;o)
Good luck with the deal, I know YOU can pull it together
I am so glad you posted this as I am meeting with a bank Friday to take over two foreclosed listings and will attempt to convince them them that the price they are seeking is absurd. You gave me strength. I just hope they will hear me.
Caren: Romaine Gary, one of my favorite writers said: "When you land from your fall and you think you've reached the bottom of the pit, there is yet much further down you can still go..." Greed is what got us here and it is greed that will drive us down further yet...
Thank you for your kind words! This post resonates with me.
Terri, you have to MAKE them hear you! Do your homework! Maybe I'll tweak my report to make it anonymous and post it here tonight or tomorrow. You'll see what I'm harping on.
I'll let you know how the video presentation works. I wonder if I can do a map mash up of all the comps and e-mail it to the decision maker along with the report, pictures and video.
Sheldon: Being a good swimmer myself, I agree with you 100%. Only good swimmers will make it... It was easy when all we had to do was jump over the puddle... Larry agrees with that statement. Wait, he is the one that made that statement.
Terri: I posted that blog for you. I hope that helps and gives you some ideas for Friday's meeting!
http://activerain.com/blogsview/954086/Bank-A-Neighborhood-Z
I am surprised that they even looked at a house that was so over priced. in my area the over priced "stuff" is just sitting, while the homes that are priced well (and show well) seem to be going close to asking price and a few have even sold above the list price.
Robert, in this area, we have so many REO's and short sales that are still above and beyond market price, that such offers are not that unusual. The original price has since been lowered by $100K by the bank after they received their appraisal, so the offer was only $65K. When I took the listing several weeks ago, I gave them my estimate of value which was close to the offer we received. They just don't listen very well. Eventually they do, because I have several acceptances with them on other listings I've sold for them.
Mirela, what a GREAT analogy! We had a perfectly good offer of $640,000 cash, close in two weeks (and they would have negotiated higher) completely rejected by a bank on a $715,000 mortgage. No counter, just rejected based on a faulty BPO. Guess what? The house expired, it's empty, deteriorating and going into foreclosure. They didn't work with the ONLY offer they had.