No One Wants to Be the Sucker Who Overpays?

By
Real Estate Agent with BlueCoast Realty Corporation

Awhile back, a fellow agent member of AR wrote a "members only" blog expressing frustration.  She presented a market analysis to a seller whose home had been previously listed by three other agents.  After doing so, he assured her his home was worth exponentially more than the market indicated.  Then he called to brag that he had a buyer who would give him almost what he thought his home was worth. 

Yes, if he's unbelievably lucky his buyer Will Not have a Buyers Agent, will pay him cash and will not get an appraisal - that's the real estate equivalent of winning the mega-millions lottery but, every year there are a handful of sellers who hit the jackpot!   

Every year in our market, there are a handful of properties that sell above market.  This year, I'm watching a home built on a grossly overpaid lot purchased 3 years ago.

 In the case that prompted the blog posting, an agent with principles educated a seller regarding his properties worth in the market place.  Regardless, his position remained "my minds made up, don't confuse me with the facts!"  She chose not to list it because listing it at a price far above market conflicts with her principles. 

Still, I suppose it's possible this seller has a "sucker" otherwise called a cash buyer without an agent who will forgo an appraisal.

Make sure you work with a knowledgeable Buyer's Agent who will educate you in market values to insure you don't end up being the sucker who overpays and allows a Seller to brag they got more than their property was worth in the marketplace! 

Posted by

Beverly Femia

The Femia Team


"With Us, It's All About You!"

 

Beverly Femia

 

 Coldwell Banker Sea Coast Realty

1001 Military Cutoff Road, Suite 101 Wilmington, NC 28405

Fax to 1-866-784-3089 (Toll Free)

Beverly Femia

Broker / REALTOR®

Email:Bev@CoastalAreaLiving.com

Phone:Bev at (910) 279-9794

Search:Wilmington Area Propertywww.CoastalAreaLiving.com

 

 

 

Comments (4)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I have always found it interesting when anyone would state the market is wrong.  It is the market that set itself.  The buyers indicates what the home will bring.  No matter what we think.  If no one want a property for the price listed it is too high. 

Aug 18, 2012 03:11 AM
Kathy Stoltman
Balboa Real Estate - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Unless the home is an one of a kind unique with nothing much to compare to, I can't imagine any buyers paying top dollar for a home, but the odds of that happening are so slim, it should not even be considered as a remote possibility.

Aug 18, 2012 03:23 AM
Bryan Robertson
Los Altos, CA

If a client of mine is poised to overpay, I'll send out all sorts of red flags to stop them but if they insist on spending the money, with full warning, it's not up to me to stop them.

Aug 18, 2012 03:24 AM
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Tim, I agree but do see a few properties purchased every year that are way above normal market.  It could be said they are changing or resetting the market, but, if they are the only folks who pay the crazy price, they just become a property that an an appraiser would not use for a comp.  Usually, that's an unrepresented Buyer who thinks they got a good deal because there was no agent involved and more likely got shafted by being ill informed and unaware of market pricing.  

Kathy - Buyers are often so ill-informed that they automatically assume a "for sale by owner" is a better deal.  Usually, it's the equivalent of a "buyer bear trap" that will cause financial harm once it snaps on them.  

Bryan, If enough buyers want to overpay, that's how we get to a new market price.  I always say to my buyers, "it's my job to educate but it's your job to decide."  I find very few well educated buyers make poor decisions. 

Aug 18, 2012 04:19 AM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?