Special offer

Market is Changing

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

We have been watching foreclosure sale at the county court. When we have the client, we go and bid, if not, we keep track of some of the properties, which we find interesting.

This over 3,000 sf house on Daytona's beachside attracted our attention because it had a lot of character. It is unfortunate that it belonged to a Real Estate broker and his wife, an agent, who buckled under the pressure of the market.

They have heavily invested in the house, added second story, made it a Spanish styled home with beautiful tiled floors throughout, a lot of cast iron (fences and guardrails), summer kitchen, a lot of custom elements...

We went to the foreclosure auction. We set our limit to $176K, but the bidding war quickly left us in the dust, but the bank in the second position outbid everybody and got the house for just pennies over $200K.

And then we saw it popping up on the market for ... $159,000. REO. Called the agent and she explained that she would hold it for 10 days, and then, if there are multiple offers, it will be «highest and best».

We submitted the offer, when she already had 5 offers on the table. We went higher than the asking price. She sent us an e-mail telling that she had 9 offers, and was asking for our «highest and best».

We hesitated, and raised the offer so that we were quite seriously over the asking price. In two days the agent sent me a letter from the bank with the rejection of our offer.

Yes, they have received a better and higher offer.

It has not yet been closed, so i do not know what the winning offer was, but we soon will see it.

This is what I have difficulty explaining to our customers. They are still expecting great deals, where they do not want to offer the asking price, no, but merely half of the asking price "because the values are 50 cents on a dollar in Florida".

They are still trying to persuade themselves that the prices will still go down even more.

Why?

Because they want it so...

Yeah, yeah, yeah...

 

Ron Climer
Keller Williams Realty Mountain Partners - Tryon, NC

   What a great article. What an insight. When you find out what that house sold for, please post another blog.  I can see why everyone hates making offers on REO s.

Mar 06, 2012 07:19 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Hi Ron. You may not remember me, I was your student when you were in Daytona. Thanks for the compliment

Mar 06, 2012 09:59 PM