IT'S A BEAUTIFUL DAY IN VENICE, FLORIDA!
For the past few years it was not uncommon to receive an offer on your property that was more than 20% lower than the asking price. When accepting a listing in the past 3 years we have come to the realization that offers submitted were more than 20% lower than the listing price. We had to prepare our sellers that they should work with any offer than came in no matter how insulted they may have felt because another offer might not be coming.
We are the bearer of bad news to home sellers. Every time I went to get a price reduction I had to put on my bullet proof vest knowing that I was going up against a firing squad. They didn't care that it was not your fault they wanted to take it out on someone. The situation especially here in Florida was incredibly bad. Listings sky rocketed throughout our county. We had years worth of inventory with no end of a "normal" market in sight.
The competition was brutal. The only homes that were selling were priced below market value. People were realizing that the bubble had burst and all they could do now was hold on for the real estate market to come back. Sellers were upset that their investments were no longer worth what they had expected. Their false sense of what they thought their properties were worth became a harsh reality.
Now heading into 2010 we are working through our inventory. We no longer have years supply of home stuck on the market. Homes that are priced correctly sell within days. Competition is getting tighter with the wave of foreclosures coming onto the market. Now home sellers have to be conscious that they are now in competition with the bank owned property that seldom stay on the market for a long period of time.
We need to get the memo out to our buyers that if their house is priced right and it is a good value it will not sit on the market long. Buyers need to be aware that if they offer a ridiculous amount lower than a list price they might be in jeopardy of losing out on the home that they want.
Low ball offers now are going nowhere fast. They waste a lot of time and usually everyone ends up loosing in the long run. Agents spend time searching for properties, making appointments, showing homes, doing CMA's and then sit down with the buyers only to realize that they want to start low and see where it goes.
I know from experience that sellers don't usually counter on extremely low ball offers because they don't know where to begin. Do they counter back standing firm? Do they counter back and meet half way? Either way I believe that low balling just irritates everyone and usually never ends up with a signed contract.
Buyers need to come to the realization that we are moving back into a more "normal" market. That homes that are over priced and stay on the market for years are usually over priced for a reason- the seller's are stuck in the mentality that their homes are worth what they were back when prices were skyrocketing.
Nothing is better than a deal that goes smoothly. We are the experts, we need to keep educating our buyers and sellers that low ball offers don't cut it anymore and that listing their home overpriced will do nobody any good. An educated buyer and seller make every transaction go smoother.
EXIT REALTY GULF COAST
1000 TAMIAMI TRAIL