I am working with some great first-time buyers. They are excited to be buying their first home and they're expectations are pretty much on track, although I think they're pricing ideas are a little off (lower than market value). We have already seen a few homes together, and yesterday they wanted to view two Homer Glen homes.
It just so happened that both homes were priced exactly the same and they were the same style home, what we call a Forrester in my area. It is a kind of split level with a unique floor plan where the dining room is a few steps above the living room. Sometimes the living room is a step up from the foyer. Same price, same style.
House #1
The first house looked nice from the outside but once we stepped inside we could see it was dated. Everything in the house was original, including the multi-blue and white shag carpeting in one of the bedrooms. It also had a blue bathroom, meaning the tub and toilet (and possibly the sink - can't remember) were a blue color that was popular in the 60's & 70's (house was built in 1976).
As we walked through the house we could tell it wasn't kept up well and talk about cobwebs! I wouldn't even walk into the basement that far because I would have been the spider web cleaner. Looking up into the rafters made me wonder if there was a spider problem. It was loaded with thick webs that gave each one of us the creeps.
It did have a huge yard but my buyers felt there were too many trees on it which would require more work cutting the grass and cleaning up in the Fall. The best thing about the house was the awesome wrap-around deck that was huge and looked to be in good shape. Lots of work in this house and I felt it was priced a minimum of $35,000 too high, probably more like $40,000 or more. It has been on the market since July ($25,000 higher when it was first listed) and I think it will remain on the market unless the sellers fix it up or reduce price. It seems like it might be an estate sale - I didn't open the fridge to see if anyone lived there but there was a senior exemption for taxes. Furniture was sporadic so I couldn't tell otherwise.
House #2
The 2nd Homer Glen home, same style, same price. Hardwood floors in most rooms vs. carpets (my buyers want hardwood). Updated kitchen with loads of cabinets and counter space. 2 bathrooms were updated but there was also a blue bathroom in this house, but it was done a bit differently and my buyer actually liked it. Looked like at one point the tile around the bathtub was redone - although still in blue to match the tub.
There was a difference in the family rooms in the two homes. The first home must have had a custom family room done when first built as it was more of an L-shape (not typical for this style) and had a wall of cabinets with a small wet bar. The 2nd home had a more typical big square family room which my buyers preferred as it was easier for furniture placement. This home had a slightly sloping yard but it wasn't super steep and had two brick paver patio areas and just a few trees that were nicely landscaped with brick surrounds.
The second home was cleaner and guess what - no hanging and thick spider webs. I swear that first house needed an exterminator. I don't think anyone lived in the 2nd house and also had a senior tax exemption. Do I think the 2nd home was priced correctly? No - I still think even though it was better it was still $25,000 overpriced. It showed as a new listing but was on the market for more than a year. Its starting price was $55,000 higher than the current price. These homes were minutes away from my Homer Glen home and I know what homes are selling for in the area.
What will my buyers do?
Although they seemed to like the 2nd house I'm not sure the sellers are ready to sell at the price we feel is correct, and I think my buyers feel that my thoughts on price are too high. These sellers certainly won't reduce $50,000 at this point in time. It might happen, but it might take another year unless they wise up.
I have a feeling my buyers will continue looking. We might try an offer but I doubt we'll come to terms with these sellers.
UPDATE: My buyers finally got an accepted contract on house #2. They accepted that $2,500 difference in price from the seller's final offer. Seller held firm and buyers called me to say they'll accept after about a week of thinking it over. I feel my buyers got a good deal on the home and I'm actually surprised the sellers came down as far as they did.
Comments(6)