Who is right? The realtor or the negotiator?

By
Real Estate Agent with Exit Creative Reaty

We had a bank approval at 121,900, a buyer (not ours) and an inspection. The inspection read "recommend further testing for chines drywall". There were pictures. The buyer walked. He had young children. We believed there was no Chinese drywall and had 2 inspections done to our satisfaction indicating there was none. The cause of the "appearance of Chinese drywall........ was sulfur in the water.  

We were told to relist it at 115,000. (denied now by the negotiator) In the meantime the air conditioner was stolen. (5000) We have a new buyer at 100,000. The negotiator wanted their highest and best offer. They said 103,000. the negotiator said no and wants to shred the file.

We did the following analysis and sent it to the negotiator. Our analysis is based on common sense. We aren't making the point 'There is Chinese drywall' Our point is who's going to buy it when they see the pictures and are told the first inspection indicated the presence of Chinese drywall?

If it has it, it's worth 62,340. If it doesn't it's worth 103,000. The negotaitor wants as close to 121,900 as she can get. That is our case. We have only the court of public opinion. What do you think?

OUR ANALYSIS

In zip code 34286 on our mls ,there are 7 homes that showed up when Chinese Drywall is mentioned in the public remarks. The stats are listed below. The average sp/ftac is $34.13 The subject property has 1845 ftac. = $62,969

All homes without Chinese Drywall were $63.98  x  1845 ftac   = $118,043

 

S

Address

LDATE

LPRICE

LP/SqFt

ADOM

S DATE

SPRICE

SP/SqFt

HTD

P

BR

BA

GAR

ACT

3172 PARADE TER

6/24/2010

79,000

38.76

16

 

 

 

2038

N

4

2

2 CAR

PNC

1749 NORVELL AVE

11/6/2009

59,000

38.29

178

 

 

 

1541

N

3

2

2 CAR

PNC

2511 VALKARIA AVE

11/6/2009

59,000

37.56

193

 

 

 

1571

N

3

2

2 CAR

SLD

2342 BEEVILLE AVE

9/25/2009

44,550

26.33

54

12/21/2009

55,000

32.51

1692

N

3

2

2 CAR

SLD

3143 TUCSON RD

12/16/2009

79,950

39.35

86

3/31/2010

60,000

29.53

2032

N

3

2

2 CAR

SLD

4228 BIRNAM TER

9/30/2009

88,100

38.74

10

10/27/2009

84,000

36.94

2274

Y

3

2

2 CAR

SLD

1541 GERONA TER

12/10/2009

79,000

37.57

56

2/8/2010

79,000

37.57

2103

N

3

2

2 CAR

 

AVERAGES

 

69,800

256.60

85

 

69,500

34.13

1893

 

 

 

 

            

We searched the same zip code without using Chinese Drywall in the public remarks. There were 743 records. The average lp/ft was 67.41. The average sp/ftac was 63.98.= $118,043   for the subject property.

With Chinese Drywall in the public remarks, the average sp/ftac was 34.13 = $62,969 for the subject property

 

  

Beds

Full Baths

Sq Ft Heated

List Price

LP/SqFt

Sold Price

SP/SqFt

LP/SP Ratio

Days to Contract

Days to Closed

High

4

3

3,346

399,500

187

280,000

152.55

137

822

943

Low

3

2

1,200

39,900

21

36,000

18

62

0

0

Average

3

2

1,766

118,833.06

67.41

112,093.77

63.98

97

96

150

Median

3

2

1,757

109,900

63.81

105,700

62

98

44

108

 

 

Search Criteria

Status

ACT , PNC , SLD

MLS Area - Zip

34286

Property Style

Single Family Home

Beds

between 3 -

Full Baths

between 2 -

Garage/Carport

2 Car Garage

Year Built

between 2004 -

Sold Date

24 months back

S

Address

LDATE

LPRICE

LP/SqFt

ADOM

S DATE

SPRICE

SP/SqFt

HTD

P

BR

BA

GAR

ACT

3172 PARADE TER

6/24/2010

79,000

38.76

16

 

 

 

2038

N

4

2

2 CAR

PNC

1749 NORVELL AVE

11/6/2009

59,000

38.29

178

 

 

 

1541

N

3

2

2 CAR

PNC

2511 VALKARIA AVE

11/6/2009

59,000

37.56

193

 

 

 

1571

N

3

2

2 CAR

SLD

2342 BEEVILLE AVE

9/25/2009

44,550

26.33

54

12/21/2009

55,000

32.51

1692

N

3

2

2 CAR

SLD

3143 TUCSON RD

12/16/2009

79,950

39.35

86

3/31/2010

60,000

29.53

2032

N

3

2

2 CAR

SLD

4228 BIRNAM TER

9/30/2009

88,100

38.74

10

10/27/2009

84,000

36.94

2274

Y

3

2

2 CAR

SLD

1541 GERONA TER

12/10/2009

79,000

37.57

56

2/8/2010

79,000

37.57

2103

N

3

2

2 CAR

 

AVERAGES

 

69,800

256.60

85

 

69,500

34.13

1893

 

 

 

 

               

We searched the same zip code without using Chinese Drywall in the public remarks. There were 743 records. The average lp/ft was 67.41. The average sp/ftac was 63.98.= $118,043   for the subject property.

With Chinese Drywall in the public remarks, the average sp/ftac was 34.13 = $62,969 for the subject property

 

  

Beds

Full Baths

Sq Ft Heated

List Price

LP/SqFt

Sold Price

SP/SqFt

LP/SP Ratio

Days to Contract

Days to Closed

High

4

3

3,346

399,500

187

280,000

152.55

137

822

943

Low

3

2

1,200

39,900

21

36,000

18

62

0

0

Average

3

2

1,766

118,833.06

67.41

112,093.77

63.98

97

96

150

Median

3

2

1,757

109,900

63.81

105,700

62

98

44

108

 

 

Search Criteria

Status

ACT , PNC , SLD

MLS Area - Zip

34286

Property Style

Single Family Home

Beds

between 3 -

Full Baths

between 2 -

Garage/Carport

2 Car Garage

Year Built

between 2004 -

Sold Date

24 months back

Kieran and Cecelia loughman

Exit Platinum Realty

   

Comments (5)

Marcia Kramarz
Re/Max Executive Realty - Medway, MA
CDPE,LMC,CBR

What is chinese drywall??

Sep 18, 2010 12:59 AM
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

realtor without a doubt...you went through alot of trouble to communicate facts to them.

They may have to send the file to the investor and may fear that the investor wont buy into your theory. You know, means more work too.

 

Sep 18, 2010 01:01 AM
Paul Lesieur
203kloanmn - North Oaks, MN

Unfortunately your dealing with someone who is working on a bunch of files and isn't required to approve opinion or facts. They just come up with a number and wait until something forces their hand. It's a flawed system and negotiators don't actually negotiate in this case they just sit on the transaction until it goes away.

Sep 18, 2010 01:04 AM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

I agree with Paul - the negotiators are swamped, and they don't have the expertise we have, and the system is totally flawed...

Sep 18, 2010 01:18 AM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

 

 

It's hard to imagine its still worth $63K with Chinese drywall, unless that's the value of the land alone. Since Chinese drywall will corrode all the wiring & plumbing the repair is not as simple as just replacing the drywall.

Sep 18, 2010 02:52 AM