I've had my eye on a 3/2 pool home in Lehigh Acres, Florida for some time. I've posted in several of my blogs that I am using my IRA for real estate to purchase income producing investment properties with Entrust Freedom.
This 3/2 pool home was listed at a somewhat aggressive price when I looked at it to my thinking primarily because it was an older home, with an older roof, no appliences and short on the sq footage at less than 1200. As a rental that works fine, but I opted for another home, slightly larger, nice pool and backyard, and brand new roof listed for about 5K less.
I kept my eye on the house anyway. Similar houses in that area with pools rent for around $800/mo so I knew at the right price the ROI after expenses could be close to 10%. I like to keep tabs on the good deals for any investor clients I have.
One client put a bid on the house several months back..a lowball offer of $55,000 with the asking price at $67,000. Based on what I knew, I really didn't think the offer was that far off the mark. I thought $58,000- $60,000 might be where it should go, and told my buyer that. The listing agent hinted the sellers would settle for $65,000. Sadly we were just too far apart.
Flash forward, the house was reduced to $67,000. Still no takers. Three days ago it was reduced to $59,900...what happened you ask? The house went into contract before I could get an email off to my buyer...just as well...he now wanted to offer $50,000.
Sellers, your Realtor has your best interests in mind. I am sure this particular listing agent (she was very lovely) worked with her buyers on their listing price. The buyer's held firm for as long as they could...holding the mortgage, paying utilities, paying for pool cleaning...hoping to get a better price so they could invest in a larger home. (They were not living in this one at the time..a vacation home). What I didn't mention is that they purchased the home a few months before listing it for $39,900. Holding out for an unrealistic price for months on end, will ultimately eat into the profits you will make. Work with your Realtor to get your house listed at market value, and sold timely.