Special offer

Buyers waiting for a miracle, or they love running after the locmotive

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

A few weeks ago I got an e-mail from a prospect in NC. He found me on the Internet, so I was already happy. I answered, he called and we discussed a lot of things. I forwarded him information, listings, wrote crazy long e-mails answering endless questions. I get e-mails quite often, send people information and usually never hear from them again but to my surprise, Mike sent me an e-mail on Friday and asked to plan showing him some condo-hotel units on Sunday. I already scheduled a business meeting with a bright young investor in Gainesville, who wanted to talk to us regarding selling the condo units he owned on the beach. I combined it with a visit a friend who just 2 weeks ago suffered a massive heart attack (and he is not even 50), so I asked my son, who is licensed and works for me, to meet Mike and show him the properties, which he did.

Besides just viewing the condo resorts and the units, Mike stayed 3 nights in the area, but every night in a different condo-hotel. He liked what we suggested as the best deals, and told us he would come on Monday and write an offer for one or another unit.

He came in the afternoon, all hesitant, started the whole new round of questions. For an hour and a half I was talking ot him, he understood everything I was saying, and he agreed with me... but he could not commit. It was very frustrating, the price was unbeatable, the rentals were good, the equity in the property was very substantial. We do not BS, we know condo-hotels and the specifics of this niche.

This is a terrific market for a cautious buyer. This  is like a time machine, where you can go 4-5 years back, while you already know what the values were. You know that there is at least that equity in the units, even if the market only gets to where it has already been. How can you be more conservative and more safe?

I remembered 2002-2003 in Daytona, when I was joking that buyers would not buy even if the Seller pays them $5K to take their units over. I remember these buyers coming to us in 2005 and laugh at themselves that they could buy for chicken feed, but they missed on the opportunity. Looks like we went the full circle, and now it does not matter what the price is, what the equity is in the units, how stable the rentals are, nothing... All what matters is when the market starts heating up, they start rushing and buying at increasing prices, and then pay over the asking price, and then buy not seen....

It reminds me village dogs. When the car is not moving, they are lying on the ground,. The moves moves, they are up and running and barking and trying to bite it. Well, our buyers are waiting for the car (real estate market) to start moving. Why is that we enjoy running after the locomotive? By the time we get there, all the seats are taken and it is already called a slow market. Go figure...

 

Comments (9)

Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
You never know these days what has gotten into the buyers. They are just shopping for the best deal even if it takes them a year to find it.
Nov 13, 2007 01:52 PM
Vickie Arcuri
Coldwell Banker Realty - Fort Lauderdale, FL
South Florida Luxury Real Estate

Funny analogies LOL It's particularly disappointing when we've spent many months of quality research and contact, finding the property that they claim to want, at their requested prices, only to have them change their minds or even go so far as to make an Offer and then back out.  Hopefully, he'll come back and buy something from you in the future.  Of course, life goes on and we keep providing quality service for Buyers and Sellers.  By the way, I would make this post "Members Only".

Nov 13, 2007 02:00 PM
Kurt Schenck
Prudential HSG Commercial Realty - Lancaster, PA

Jon,

In an off handed way I made a similar entry on my blog today. Mine revolved around rentals and how now is the perfect time for a buyer to be entering the market. (good deals are everywhere.) I don't know why people are so hesitant to enter the market when properties are "on sale", but you are right. The first time that MSNBC says... "real estate markets are starting to heat up again" everyone and their brother will be beating a path to our doors to pay "list plus X".

I feel that we must take the imitative ans SHOUT FROM THE ROOF TOPS.. Get out her and buy these fabulous properties while you can still are able to get them for a reasonable price.

I hope your guy sees the light. email him my blog entry if you agree with my analogy. Read it and tell me what you think.

Nov 13, 2007 02:01 PM
Vicky Poe
Good Ole Rocky Top - Crossville, TN
Realtor/ Auctioneer
Inventory is good and interest is low.  People should not hesitate about buying.  What do they want a shortage of good properties to think they are getting a deal.
Nov 13, 2007 02:07 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Susan - That's the problem. He would not get a better deal, as for that people should be coming with a fat check to the closing, and that is not going to happen in a property where rent support not only the maintenance fee and taxes, but also a sizable part of the mortgage if not the whole mortgage. If that comes to that point, they would simple get into foreclosure, and the buyers like mine would get it anyway. SO in a year at best he would find a similar deal, not better. And I am not getting him the market deals, these are the units for $50-$60 less than the net, and at only $110K this is a huge difference, and still it does not work. And nothing will work until the locomotive start getting the pace.

It is soooooooooooooo frustrating.

Nov 13, 2007 02:25 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices
Vickie - Thanks for visiting. I can't figure eactly the whole thing with Members only and when to post to Members only, and when to the public. Read someone's suggestion to put everything to Localism, and it sounded like a good idea.
Nov 13, 2007 02:30 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Kurt - I sure will. We are shouting, the thing is that they are in a deep coma and do not hear us. People are happy to pay more when everyone else around is buying. And we can't help it.

Of course, this is the buyers market, but I would call it the smart buyers' market. Unfortunately, they are not as huge a crowd, than what we had couple of years ago.

Nov 13, 2007 02:36 PM
Vickie Arcuri
Coldwell Banker Realty - Fort Lauderdale, FL
South Florida Luxury Real Estate
Hello again, Jon.  Posting to Localism is for posts that are Consumer oriented, that we want them to read.  Localism posts can be viewed publicly by anyone.  If you want "Mike" and/or other Consumers to be able to read this post, then that's up to you, but if you want this post to be read by Active Rain Members Only, then that's when you post it as "Members Only". 
Nov 14, 2007 04:49 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Vickie - That's what I initially thought, but then there are few posts, stating that even though they were marked "Members Only", you could find them next day on Google, so there is a big chance that whever is written goes on record anyway.

Thanks

Nov 14, 2007 05:22 AM