Hi folks. I received an offer on one of my listings today. I was pretty excited when I heard it was coming over but of course as soon as I saw it, my excitement faded. Now folks, I know things are slow and I know it's a Buyer's market. My Sellers know this too. In fact my strategy, during this more difficult market, is to price my listings below recent sales. I always want my listings to be in the top five, arranged by lowest price, for similar properties. This particular property is Range Priced from $179,000 to $199,000 with a target price of $185,000 to $189,000. Recent sales (last 45 days), of which there are five of them, have been from a low of $189,000 to a high of $204,000, with the average being $195,000. So you can see we are priced very well. This house is actually a superior property and "true value" is $199,000 to $202,000. So we priced it 5% below current market value.
Anyway, the offer came in at $165,000. Now, I've been in this business long enough to know how the game works. The Buyer wants the lowest price possible and the Seller wants the highest price possible. And, in this market, Buyers REALLY want the lowest price possible. The part I didn't like was the other REALTOR® putting a cover sheet on the offer telling me how bad the market is and also mentioning that there have been NO recent sales of comparable properties. I do understand he is trying to sell me on the offer but why state there have been NO recent sales? I wonder if he told the Buyers that as well? Wouldn't five sales within the last 45 days be recent? Wouldn't your job, as a Buyer's agent, be to give the Buyer ALL the information available so they can make an informed decision, about market value, before presenting an offer? Wouldn't the Buyer have a better opportunity of getting a good deal if their offer was a little more realistic?
The reality is, there is no chance of them getting this property for anywhere near $165,000. It is already priced properly taking current market conditions into consideration.
Of course, I always recommend to my Sellers that they counter the offer, so they did. And along with the counter I took the liberty to provide the other REALTOR® and Buyer with recent sales justifying our price. I attached them to the counter offer to be sure the Buyer sees them. Hopefully this will help. After all the Seller does want to sell and the Buyer does want to buy. Maybe we'll find an agreeable meeting point.
It may be slow, but we are not giving houses away, in Poinciana Fl. YET! So how about you? Any fire sales going on in your market? Are you giving houses away yet?
HEY, TURN ON YOUR SPEAKERS AND CLICK ON THE SIGN ABOVE. IT'LL BE FUN!