Archive for the 'Home Sellers' Category
Some Short Sellers Are Real Turkeys
November 24th, 2008 categories: Home Sellers
It hit me as I pulled into the driveway of a home that was listed as a short sale.
Parked in that driveway were 4 cars - two of them nicer than my own. This is the home of a seller who is strapped for cash? Who can’t pay the bank what is owed?
Then I see the house - filled with gadgets like a flat screen TV, the box for an iPhone, a computer, and almost 100 brand new pairs of Nike Air Jordans stacked in a bedroom in their original boxes and wrapped in plastic - probably worth more than what the owners will owe the bank.
Busy shopping, the owners have left the house in serious need of repair. Just who is supposed to pick up after their financial mess? Am I actually supposed to feel sorry for someone who treats their sneakers better than their biggest asset?
Misplaced priorities. Poor decisions. Lack of respect for money and homeownership. These are the real problems facing the real estate market.
I can’t help but compare this house with many others I’ve seen owned by senior citizens. On fixed incomes and with few luxuries, the typical senior citizen treats their home with the care and respect a home deserves.
When working with a new client, I often say that they would be lucky to find a home lived in and cared for by a senior citizen because you can bet everything is in great condition - although maybe out-of-style.
Then I think of my grandmother who bought everything she owned from a second hand store and was too poor to buy her own home but treated her tiny rental apartment like it was the Taj Mahal.
We must regain our respect for the privilege of owning a piece of a real estate (because it can only be obtained through saving, hard work or birthright) and that by owning real estate, we make a promise to ourselves, the bank and our community that we are going to take care of it - better than we care for a lousy pair of sneakers.
Gobble. Gobble.
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Home Buyers to Sellers in Connecticut- That Ship Has Sailed
October 27th, 2008 categories: Central Connecticut News & Information, Home Buyers, Home Sellers
Home buyers are communicating to home sellers loudly and clearly - don’t accept my offer and I will move on. And when you finally adjust your price to where it should be or should have been, I will have found another home I like just as much and a seller who is willing to work with me.
Case in point: A client put in an offer earlier this year on a home in the Farmington Valley. The offer was 13% below the asking price but we had solid comparables to back up our offer. The house was overpriced by more than 10%.
After some negotiation, the buyer was actually willing to overpay for the property slightly but the seller was unwilling to come down on the price by more than $10,000. Another $3,000 off the price and they would have sealed the deal.
My buyer client walked. Or, in keeping with my theme, sailed their boat to a different port.
Flash forward 4 weeks. I get a call from the listing agent who tells me that the sellers have reduced their price by $10,000. They will likely end up selling it for less than what my buyer was willing to pay for it, if they sell at all.
Unfortunately, her clients missed the boat (sorry, I can’t help myself). My client already put in an offer on another property and is closing soon.
The seller made two classic mistakes: they overpriced the house and were unwilling to negotiate with a real buyer.
Overpricing
A home seller’s best opportunity to sell is within the first three weeks a home is listed. The best offers by the most qualified buyers typically come at this point.
After that, you most likely have to play catch up with the market. In this case, we are in a slightly declining market (we are not Florida or California) and sellers, with their agent’s advice, should anticipate the market.
Furthermore, you risk other homes selling for less, driving down the value of your home, or worsening economic or credit problems.
The example I used above is still overpriced by at least $7,000. The sellers haven’t learned their lesson yet.
Unwilling to Negotiate With Real Buyers
A real buyer comes to a seller with a decent deposit, some money down (preferably) and a mortgage pre-approval (even better, a Buyer’s Edge Approval from McCue Mortgage which is only subject to appraisal and a sales contract). They are actually qualified and want to buy your house! What a combination.
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Connecticut Cities Avoid List of Forbes Next Foreclosure Capitals
October 20th, 2008 categories: Home Buyers, Home Sellers, Investors/Landlords, Real Estate Market
Forbes.com just released their predictions for the next round of cities to be hardest hit by foreclosures. Move over Stockton - hello, Jacksonville.
The good news is that no city in Connecticut is on the list - the bad news is that such a list exists.
The cities named are:
1. Jacksonville, FL
2. Fresno, CA
3. Naples, FL
4. Miami, FL
5. Orlando, FL
6. Santa Cruz, CA
7. Merced, CA
8. Oxnard, CA
9. Deltona, FL
10. Santa Barbara, CA
RealtyTrac.com ranks the Top 100 metro areas for foreclosures in the 2nd quarter of 2008 as New Haven/Milford rank #57, Stamford/Norwalk/Bridgeport is #64 and Hartford is #74.
For August of 2008, CT ranks as the 17th top (worst) state for foreclosures.
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Getting the Most Out of Your Free Comparative Market Analysis
October 7th, 2008 categories: Home Buyers, Home Sellers
I have an online form for buyers and sellers to fill out to request a free Comparative Market Analysis for any property they’re buying or selling in Central Connecticut (Hartford, New Haven, Middlesex, New London and Tolland counties).
Having received a number of requests, I realized that I needed to add a field to identify whether the person is a buyer a seller. While the final price I come up with may not differ that much, the report will differ - for a seller I’ll include active properties but only include recently sold homes for buyers.
In addition to the new required field, here are some other tips to getting the most out of your CMA.
List as many additional features as possible, such as updated kitchen, fence, deck, fireplaces, wood floors, or any other new or updated features. Or list any repairs that are needed.
In the comments box, put any information about your plans to buy or sell. Are you planning on selling in one month or six months?
Do you have reasons for selling (financial, relocating, etc) that would warrant a need for a faster sale?
Do you have any other information on the buyer’s or seller’s motivation?
Please note that I compile all the data by hand, pulling information directly from the multiple listing service and local property tax databases, so it can take up to 24 hours.
To get your free Comparative Market Analysis, click here.
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Guide to Successful Low-ball Offers
October 1st, 2008 categories: Home Buyers, Home Sellers
Robin Stansbury wrote this article for Sunday’s Hartford Courant on low-ball offers, quoting yours truly.
Here is an excerpt from my earlier post, The Anatomy of a Failed Low-ball Offer, with some concrete things you can do to improve the odds of getting your low-ball offer accepted:
How to Win with a Low-ball Offer
Present a complete offer and explanation. Asking a seller to come down significantly on their price requires a leap of faith on their part. Sellers need to know why the offer is lower than the listing price - is it because the comparables say so, the market is declining, the buyers are well qualified but can’t go higher.
Back it up with facts. If the comparables show a lower price, I’ll forward them to the listing agent. I won’t be obnoxious about it - I’ll just say, “here’s what I used to come up with a value, so you can tell your client.”
Play on insecurities without making negative comments about the house. I ask questions that remind the agent that the house has been sitting on the market like ”how many offers have you received on the house?” “how long has it been on the market?” (even if I see on the listing sheet). I may also comment on how many houses are on the market in the area or price range. I try not to say anything negative about the house or condition, unless the agent asks.
Make the offer otherwise sweet. When I’ve presented successful low-ball offers, I’ve asked the buyers to give up something else to entice the seller. For example, I would ask the buyer to put a larger security deposit, have the inspection faster than normal, have the commitment faster, close earlier or later (depending on the seller), for example. Low-ball offers also work best when the buyer doesn’t have anything to sell.
For additional posts on making offers, read the following:
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