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Treasure Island Real Estate | PLEEEEEEEEEEASE when you make an argument be prepared that I will take it apart!

Real Estate Broker/Owner with South Beaches Real Estate Professionals BK 652174

December 23, 2010 06:14 AM

I really do not know what some people are thinking and how on earth they came up with their arguments. Whatever happened to "Think before you Talk"?

I am a single agent for the buyer. Asking price was $425,000 we offered $ 325,000

Listing agent just called me and said the seller is countering with $425,000 (you call this a counter?)

Anyway, his one and only argument was " You need to know that they paid $600,000 for it" (do I really care?) (does he think I did not look this up before we made the offer)

So, my response was REALLY ??? and WHEN was that?

In the summer of 2006.

"OH, so you are telling me that they bought at the top of the market BEFORE the values went down by 40%. Let me think, the values are still going down, in our area we have not seen bottom yet so we should actually subtract the 40% plus another 10% or maybe even more which really means that we are already offering too much"

WHY would someone bring up an argument that they clearly cannot win WHY WHY WHY???

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Matthew Cordisco

Pocono Mountain Lakes Realty - Pocono Lake, PA

Pocono Real Estate Professional

Hahahaha, yeah I guess he doesn't have very many cards he can play with that hand!

Dec 23, 2010 06:17 AM

Ingrid Laine

Sun West Mortgage Company, Inc. - Virginia Beach, VA

Loan Officer

So... they just picked a number from thin air between the actual value and what they paid?

I should try that with my stockbroker! "I know I paid $440 a share for Yahoo in 2000, and now you say the "market" says its only worth $16.50 today... will you take I dunno... $200 for it?" Who is this "Market" anyway?... who says that she can set prices? I didn't agree to those rules!

—Ingrid

Dec 23, 2010 06:21 AM

Anne Hensel

South Beaches Real Estate Professionals - Saint Petersburg, FL

Realtor - Broker - St. Pete Beach, Treasure Island

Ingrid, wouldn't be nice if the world worked like that?

Dec 23, 2010 06:23 AM

You know it really would...

Dec 23, 2010 06:25 AM

Alan May

Jameson Sotheby's International Realty - Evanston, IL

Home is where the hearth is.

You need to know that they paid $600,000 for it

okay... and YOU need to know that we're not going to pay that.

Dec 23, 2010 06:26 AM

Alan, that probably would have been the better response and easier response.

Dec 23, 2010 06:27 AM

Faye Y. Taylor

StepStone Realty, LLC - Floresville, TX

Country Living with City Convenience -Wilson Co TX

Because everyone still thinks in terms of "I"

Dec 23, 2010 06:34 AM

Faye, you are so right BUT this is the listing agent. isn't it his job to come up with some good arguments?

Dec 23, 2010 06:39 AM

Barbara Le Pine

ADVANTAGE REAL ESTATE, serving Lincoln County - Newport, OR

Your agent for the Central Oregon Coast!

Anne, great post. Here is my two cents worth:

There would be no way to know the value until more research is done by both of the real estate professionals involved: I would ask the listing agent to send me comps supporting his counter, then I would ask the buyers to "keep the ball in play" by sending another counter with a friendly letter along with my comps supporting my buyers counter.

There are often vastly different comps that can be used depending on the amenities of the subject house, if you two agents work together to narrow them down to the best comps, you might be able to make a case to both buyer and seller that an appraiser is going to see those same comps that you are showing them and a sale price needs to be bracketed by the values found in the recently closed comps or the lenders appraiser will not approve the loan and the transaction won't close if the sale price is higher than the appraisal. This means having the sellers go out to view the active competition, and driving by the closed listings to get a real idea of the properties used as comps.

I would ask the listing agent to remind the sellers that the price for the new house they want is also going to be lower, so they do not need to be adamant about getting "what they paid." The seller for the new house they are about to buy will need to come back to reality as well. They will likely end up with a better house than they bought for $600 a few years ago.

Now is the time to educate the buyers and sellers. The sellers who overpaid $600K for the house may not be in a position to sell if they owe too much on the loan to close at todays market values.

Thanks for a thoughtful post!

Dec 23, 2010 06:51 AM

Barbara, I appreciate your input and I am keeping the ball in the air. I just submitted a counter offer with the comps etc.

Let's see what happens next.

Dec 23, 2010 07:30 AM

Bill Pohl

Tetra Homes, Inc. - Loveland, OH

Anne - I like the way you think. I offer to real estate all the time and people always think that their cost has some bearing on the price TODAY. I don't get it. But there also has to be a disconnect with the listing agent to price it as such a price too.

Dec 23, 2010 12:18 PM

Treasure Island Real Estate | PLEEEEEEEEEEASE when you make an argument be prepared that I will take it apart!

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