Special offer

How much of a deal do you want!

By
Real Estate Agent with REMAX Upper Valley

Wow I recently sold another bank owned property for about 1/2 of what the previous owner paid for it.  Both buyers realized what a great deal they got.  What continues to amaze me though are all the other buyers who think they can purchase forclosed homes for 1/2 or even less than the currently low asking price.  I'm not sure if they are watching too many info-mercials about buying homes for $300.00 or what but I can't tell you how many buyers I've spoken with recently who want to make $20,000 offers on $100,000 listed forclosures that actually have a value of $175,000!  I even spoke to one buyer who wanted to make such an offer on a $500,000 forclosed home when I explained to them that even if by some weird fluke they did purchase the house how were they going to pay the $18,000 per year property taxes on their $29,000 income?

I'd like to say "stop wasting my time!" Don't you think, as a Broker in the business, if I knew you could actually get a $150,000 house for $20,000, I'd let a deal like that pass me by first?  Most REO's already prohibit the listing agent from purchasing at the already low price because "SHOCK" its already a good deal!  

Are we having fun yet?

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

That's why I publish List/Sold stats and give good comps to my buyers.  They need to know the market.  Fact is, foreclosures are already discounted when they are listed.  Occasionally one will be overpriced, but we work through it.  If the bank gets an offer, they reevaluate the price. 

Feb 10, 2009 06:43 AM
Ernie Steele
Lebanon, PA

Gerry...I've been through the same thing myself...I asked one client if he really thought that us Realtors were too stupid not to buy them up first...He went elsewhere but I wasn't wasting my time anymore...Hey, I just noticed your profile...I'm in Lebanon, PA!

Feb 10, 2009 06:47 AM
Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

Me too.  After looking at my data, though, it looked like the previous buyer just paid way too much for the property to start with.  I am sure lots of that went on in the "Wonder Years".  You know, those times we wonder how they ever got a loan to start with.

Feb 10, 2009 06:48 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Gerry, we had a buyer that insisted on making a low-ball offer on a waterfront property that was priced to sell.  He thought I was out of my mind suggesting a price slightly above asking price and came in $100,000 below asking price.  He was a bit ashamed and now will listen as the home sold for $100.00 less than the price I suggested.  Problem is, not very many deals like this around and he really liked the house.

Feb 10, 2009 07:19 AM
Amy Margolis
Lebanon Property Management, Inc - Lebanon, NH

All of these are reasons for WHY the buyer hired or should have hired you in the first place, they need our expertise (sometimes they just forget how much).  I would keep a binder of letters or even my own journal entries chronicling each time an opportunity was missed because my advice was not heeded, and then each time a great deal was seized because my advice was taken - let them decide for themselves which side of the binder THEIR story will be displayed!  Why reinvent the wheel every time this issue arrises, just say, "you know you should have a look at this journal I've been keeping..."  Just make sure it is clear that you are the professional and know your market so well that they should follow your advice!

Feb 25, 2009 01:45 AM