Sometimes I have to wonder…
Here are the particulars:
- Gated condo in a golf course community. Lovely home. Grossly overpriced at $245K.
- Languishing on the market for 201 days.
- Last unit sold in the development was in August 2007 for $228K. Same model. A perfect comp, other than it sold six months ago.
Our buyers are from Canada. Down for a few days to view homes and they like this development. We figure OK, the last sale was $228K, prices have dropped since then roughly 7%. That’d put it at $212K. So let’s offer $200K and see where we go from there. Cash offer, with proof of funds available. We expect a counter.
(And before anyone jumps in, please keep in mind the offer price was derived from much more in-depth analysis. I’m summarizing here for brevity — something I don’t usually excel in…)
Lo and behold we get a counter:
- Price to be $230K (higher than the last sale six months ago, in a generally declining market mind you).
- Doubling of the buyer’s earnest money amount (in an all cash deal with closing just 11 days post inspection period???)
- Adding conditions that make the buyer’s earnest money non-refundable. (WTF?)
- Notice that the HOA fees were 14% higher than what was in the listing (uhm, try updating the MLS. It takes 15 seconds).
- Changing the choice of the buyer’s title company (let’s make it as inconvenient as possible for our out-of-country buyers).
Huh?
Are you just playing a game, listing your home hoping the combination of ignorant buyer and lousy agent stumble across it?
Buyers have a bazillion other homes to chose from. Well, maybe half a bazillion because it’s likely there are a bunch of other listings in the mix that the owners really have no intention of selling.
If you really want to sell your home here are a few simple tips.
Price it properly. Wanting 20% more than it’s worth is understandable, but it’s not realistic.
Make sure the info in your listing is updated. Things like getting notice of increased HOA fees tend to annoy people. Annoying a prospective buyer in this market is generally a bad idea.
If the buyer presents solid loan qualifications or is a bona fide cash buyer, don’t get greedy with earnest money demands.
You don’t have to suck up to buyers, but really in the grand scheme of things, does the title company really matter? (see “do not annoy buyer” above)
It’s a buyers market in Phoenix (and many other locations across the country). Like it or not, buyers are pretty much in the driver’s seat. If you get an offer, it’s a proclamation that “Hey! Someone is interested in purchasing your home!” To squelch that right out of the gate is just silly.
And it is proof positive you don’t really want to sell your home.
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[tags]Home selling tips[/tags]
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In Idaho it’s a RESPA violation for the seller to dictate the title company.
the sellers out there need to realize they are not in the drivers seat – and true too in Oregon – if a seller insists on a specific title company they can be held to pay the buyers title and escrow fees – but no one enforces it here.
I entirely agree with you. Either this seller was not really interested in selling or he is a lousy poker player. Perhaps he expects you to bargain with him.
In Kootenai County, SOP is that seller pays buyer’s standard title insurance and splits the closing escrow fee. We have had a seller or two, when forced by a buyer to use a title company they do not want to use, refuse to pay those items. That part is legal and not a RESPA violation.
I’ve never understood why the buyer gets to pick when here, the seller is the one who pays for it.
Christina: In my praxis in Houston, I go by the rule: If you’re buying dinner, you get to pick the restaurant.
Buyer wants to pick the restaurant, pay cash and close quick? We’ll buy dinner and let you eat wherever you want!
Jay: I wish my competing listing agents were as good as that one!
Same deal here in the Tucson Real Estate market, way to many sellers just thinking that thier price is to good to pass up even though it’s 20-30k overpriced. The real issue is so many of the real estate agents in Tucson are hurting so their scared to upset the seller and bring them into the world of reality because they dont want to lose the only chance they have to catch buyers off the for sale sign. Well I think that’s thier hope anyway, because ther’re not going to be selling the listing so that’s the only reason I could imagine so many agent in Tucson would put up with way over priced listings.
I think many of these sellers are trying to hold onto an old market. I just wonder about their Real Estate Agent.
Is the home upgraded or does it have a premium lot? Maybe a pool? Either way it doesn’t seem like the seller is doing more than wasting time and hoping for an ill informed buyer and Agent.
“Make sure the info in your listing is updated.”
That has to be my number one pet peeve, actually number two after not returning phone calls. Agents and sellers both need to make sure the information on their listings is correct. This is a simple process and should be the first step in marketing a home.
I think sometimes sellers are in denial about the state of the market. It drives me crazy when sellers have all these little nit picky requests like changing title companies. Its like they are intentionally trying to sabotage their own deal.
I’m reminded of a lesson taught by a mentor – Sometimes it’s better to keep your mouth shut and let them think you’re an idiot than to open your mouth and remove all doubt. Clearly the seller removed all doubt, as did their listing agent. Can you say “Get Real!”
What about all those “realtors” who got ill-earned commissions on bloated, artificially high figures by biased “appraisers”, “lenders” all in bed with realtors to make $$$$. The greed has sunk the USA RE market permanently. Why don't they return a portion of their commissions. The massive amounts of people underwater on their mortgages especially in AZ is frightening. Where are those baby boomer RE agents now? Greed, $$$$, and then those foreclosures that drive home prices further into the toilet thanks to joke mortgages given to anyone who can fog a mirror. Mexicans making min. wage, getting 700K no money down, hi-fi, we-fi, re-fi, re-fry, all that BS with those granite countertops, stainless steel, and big country kitchens, microwaves ovens, plasma, —–we call them the $60,000 millionaires. You see them all the time, their the ones renting beamers, renting tvs, no money down homes in Snottsdale, wearing credit card clothes, and up to their eyeballs in the debt musical chairs game.
What about all those “realtors” who got ill-earned commissions on bloated, artificially high figures by biased “appraisers”, “lenders” all in bed with realtors to make $$$$. The greed has sunk the USA RE market permanently. Why don't they return a portion of their commissions. The massive amounts of people underwater on their mortgages especially in AZ is frightening. Where are those baby boomer RE agents now? Greed, $$$$, and then those foreclosures that drive home prices further into the toilet thanks to joke mortgages given to anyone who can fog a mirror. Mexicans making min. wage, getting 700K no money down, hi-fi, we-fi, re-fi, re-fry, all that BS with those granite countertops, stainless steel, and big country kitchens, microwaves ovens, plasma, —–we call them the $60,000 millionaires. You see them all the time, their the ones renting beamers, renting tvs, no money down homes in Snottsdale, wearing credit card clothes, and up to their eyeballs in the debt musical chairs game.