We have a tough job as Realtors but ultimately we are responsible for assisting our clients get the deal done. My pet peeve, other Realtors who don't advise their clients to counter. It's a negotiation, buying real estate is not like walking into the local supermarket and purchasing a can of beans. If a listing agent takes a listing at a certain price and has not advised the Seller that the eventual sold price will be in a range then they are not doing their job properly.
The South Florida market is going through a rough time, properties are lingering on the market, we have the 3rd highest level of foreclosures in the country and in some communities, upwards of 40% of listings are short sales. Getting a qualified buyer willing to negotiate a deal is someone we should appreciate and work with.
I believe that the problem often stems from listing agents taking listings at prices the Seller wants as opposed to a list price that the market can bear. As I keep saying, a property is worth what a qualified Buyer is willing to pay. So many Serllers believe that the recession and real estate market has affected everyone but them, they insist that their granite counters and beautiful wood floors make their house worth 20 - 30% more than their neighbors. Unfortunately, the appraiser won't agree with that sentiment.
I recently had a situation with a buyer who wanted to purchase a condo on the ocean in Boca Raton. What he wanted was a condo / townhome on 2 floors. This type of property is not easy to sell. The area attracts older retired people who do not want to deal with stairs to walk up to the bedrooms. Also, the unit was in desperate need of a complete renovation. Although the floors were marble, they were an unattractive green color, the kitchen and bathrooms were also dated. The Seller purchased in 2005 at the peak of the market, he had been trying to sell for 4 years and had sporadically rented the unit out for less than what his monthly costs were. My client is about 20 years younger than the average resident in the area so did not mind the stairs. He was also willing to renovate completely and offer an all cash deal. Most wealthy buyers here do not want to deal with renovations and contractors.
The average sold price for condos on the ocean here range between 76 - 90% of list price. My Buyer offered initially at the 70% range, we received no counter, he then offered closer to 85% - still no counter. Guess what, a year later, the condo is still on the market, no change in list price. I would think the listing agent should be providing her Seller with better market information so that he can make an informed decision and understand the need to negotiate.
I'm interested to know how others feel about this issue.
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