I am not sure which created which, did current market conditions create this animal or did this animal help create the current conditions?! You decide.
Here's what I'm finding, I have buyer clients who actually have money - there's a switch. And not just money in the form of decent credit, but cash - yes it's true!!! Clients with cash who are looking for waterfront property. I have been working with them since June and we have looked at somewhere between 16-20 properties. I have logged several hundred miles on my car and bought several lunches during our time together. I enjoy these clients and they are good people, but here's the rub - they want to buy $600K homes for $100K under list price.
I have taken the time to educate them, show them comps (of which there haven't been many), discuss current market conditions, negotiating strategies and pricing scenarios but to no avail. They set themselves up for failure every time by offering a figure that is usually 15% of list price. No one is willing to jump on that at this time even though one home has been on the market for 8 months, is a FSBO and the owners are in their mid eighties.
I just came back from another rejection yesterday. The home is a FSBO where the owners, much to their credit, did agree to my sales commission (Yes, I got it in writing!). Prior to presenting the offer I educated them as to the current market and showed them "the" comp for our area. I presented the offer (it was 13% below list) and before I was done with the first page the hackles were up and rejection was evident. So I spent the next 30 minutes speaking to the sellers about tax value verses appraised value verses market value and why the offer was a valid offer. No deal.
Bottom line: frustrated buyers, frustrated sellers, frustrated agent.
More than once over the course of the last few months I have seen this scenario played out. Motivated buyers who want caviar on a steak budget and unmotivated buyers who are being unrealistic about the current market and the value of their property. Maybe if these FSBOs had agents the deal would get done?!!!
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