When Houses Sit --- Update

By
Real Estate Broker/Owner with Cornerstone Realty Partners

This is an update on my previous post of "When Houses Sit..." To recap - this weekend I received an offer on a new construction 2 family for a first time home buyer. The house had been sitting on the market for over 18 months, and the builders had already let go of higher offers when they thought they could get more. My offer included builder incentives and transfer tax. Needless to say, when I personally presented the offer on Sunday they were not overly excited...

Today I met with the builders again. Their first reaction was typical and expected - GET ME MORE... But after allowing them to vent and explain their position, I could help them assess the market. Each month that property sits vacant costs them $xxx dollars. We can save that money by having these qualified buyers, with a reputable lender, and motivated to move in. Let's not forget your money is not in that house, not any more, but in the property you will buy now with that money - at an extreme discount!

So, with getting a little movement on the buyers side (having explained to them at the offer that unless you offer full price, you can expect a counter), the builders agreed to our reduced offer with concessions, as long as we got the transaction closed before an extra payment is made on their end (can do with the help of our lender).

Now, let's get that transaction moving so we can close in 30 days. While I'm at it, I better find another opportunity for that builder to invest in...

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Location:
New York Richmond County Staten Island
Tags:
market
builders
new construction
first time home buyer
builder incentives
negotiations
st george
west brighton
elm park

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Rainer
24,285
Matt Ratcliffe
Keller Williams Realty Brazos Valley - College Station, TX
Great job and understanding of the markets is a key no matter who you represent.
Jan 28, 2008 01:31 PM #1
Rainmaker
359,877
Erick Blackwelder
Cell: 703-677-1120 - Woodbridge, VA
Text or call Erick now at 703-677-1120.

You did well by your builder.

As I say to my sellers, when they are selling NOW to move-up NOW, they may get less than they want when they sell, but they will more than make up for it when they buy forward.

Jan 28, 2008 01:34 PM #2
Rainer
12,480
Frank Rizzo
Cornerstone Realty Partners - Staten Island, NY
Matt - thanks for the comment. Understanding the markets is key to the value we bring.
Jan 29, 2008 12:00 AM #3
Rainer
12,480
Frank Rizzo
Cornerstone Realty Partners - Staten Island, NY
Erick, you're so right. The money you think you're missing on one end is more than made up on the other side of the transaction when you move forward.
Jan 29, 2008 12:02 AM #4
Rainer
2,420
Scott Setaro
Appleseed Homes - Staten Island, NY
Great Analysis on the conditions of the market and how they directly effect the bottom line for these home owners.  Now all we have to do is get them to believe in the "take a step backwards to make 3 steps forward" theory so we can move some of these out dated inventory
Jan 31, 2008 03:07 AM #5
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Rainer
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Frank Rizzo

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