It's been painful trying to educate Buyers and Sellers about our current market. Rationale is out the window - literally. More often than not, I need to remind clients to stop listening to the media and to focus solely on their competition. Yes, they do usually look at me as if I've lost my mind. But what can I do?
It's my job to do my utmost to help my clients achieve their goals. Sometimes it makes me appear to be a lunatic. But what the heck. They need to stop listening to folks who don't do this for a living every day - and start appreciating that this is WAR. If they really want a screaming good deal, there may actually be some screaming involved before we're through. It's maddening out there.
Here are a few of the most common falsehoods I frequently need to put right.
Q- Doesn't the bank WANT to sell the house?
(Asked when it takes 4 days, 6 emails and 15 phone calls to get the listing agent to verify that they received our Buyer's offer, only to have them tell us that it sold two days ago and they just didn't "have time to update the MLS" .) No kidding, I have nothing but time considering I just blew 15 hours on this contract and chasing your butt down to hear how busy YOU are...
A- "Yes, but apparently their listing agent has all the time in the world to waste."
Q- But this is a "Buyer's Market" - I don't want to get involved writing a lot of Counter Offers back and forth just so their agent can hike up the price and make more commission.
A- "Don't worry. When you write offers THAT low, you won't GET a Counter Offer. And no, they are not obligated to respond to your offer, or to my calls, emails or faxes. They can pretty much do what they please..."
Q- What do you mean your Seller isn't going to Counter our Offer?
(Asked by the agent who wrote a $370,000 offer on a fixer home listed for $509,000, when comparable homes just sold in the same tract for $600,000 and there were 5 competing offers written above list price...)
A- "I don't know. Just crazy I guess." (Refer to the prior answer.)
Q- So do you think we can offer $550,000?
(Asked by the starry eyed buyer who apparently did not read or understand the report I'd just furnished explaining that three identical homes in the same tract sold within the last 90 days for $699,000-$729,000 - all after fewer than 14 days on the market...)
A- (I really say this...) "Sure we can. And we can keep writing offers this way until you get bored with having other buyers eat your lunch. Then we can do it my way. I'm patient - I'll wait as long as you need to see reason..." (They come around by offer #4 or 5. Just for fun, I keep track of what I told them to offer and the actual closing prices. This type of buyer takes so long to see reason that several deals actually close before theirs will.)
Q- Are you SURE you can't find even one 4000 SF single level foreclosure with an ocean view, 3 car garage, completely updated kitchen, tasteful decor, in the right school district, facing North (actual scenario) priced for 40% below market?
(Asked by the buyer to whom I have just shown that there were a total of 3 foreclosures in that community, which were all snatched up by cash buyers who were thrilled to get a luxury home for $250,000 (8%) below market.)
A- "Hmmm, crazy isn't it?" (picture my shrug...)
I know, I know - cynicism isn't pretty. But at least I'm still laughing. If anyone wants to see what's up in the Orange County CA market, here's a terrific report for you -Click Here. In short, entry level homes are selling in less than two months, foreclosures priced below $500,000 are selling in less than two weeks and those are selling for an average of 103% of list price. So much for "lowballing"...
If you would like any other information about our "OC" market, please visit our web site www.AlisoViejoRE.com or shoot me an email, I'm happy to help in any way I can.
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