Our real estate market here in Brevard County is flooded with short sales and foreclosure properties. There are some absolutely fantastic deals for buyers today. There are short sales at under $100,000 that are 1700 square foot homes, 3 bedroom, 2 bath, 2 car garages, on .23 acres, 2-3 years old, many never lived in. The deals are phenomenal!
Over the past couple of months I have seen a trend with buyers. Buyers are not interested in what comparable homes have been selling for in an area. They are interested primarily in what THEY WANT TO PAY for a property. PERIOD! It seems there is no rhyme nor reason to the numbers that buyers are attempting to throw out there to purchase these properties. Now, don't get me wrong, when I buy real estate, I want to pay the lowest price possible. I think we all do. But, I keep hearing buyers say that they know they can pay pennies on the dollar for a property. Just where are they getting this information? Late night TV?
Some of these low ball offers are being signed off on by desperate home sellers on short sale listings. Then, they are forwarded to the third party lenders for approval, where they will never have a chance of being accepted! These offers are clogging up the system and back logging the lenders and title/escrow/closing companies or attorneys offices.
Well, I suppose that turnabout is fairplay. In 2005, sellers were asking outrageous prices for their homes and getting their price, because homes were in such short supply.
In 99% of the cases, today's lowball offers are being rejected.
Maybe it's that 1% chance that they're hoping that their offer will be accepted.
This article is authored by
Sandy Shores, Melbourne FL Realtor
that for you
Hi Sandy. It does take on a strong law of supply and demand tact when there is excess supply. Buyers can get away with out the chute doing the low ball offer. It is what it is. Things cycle like you say they did from 2005.
I'm in a fairly strong market, and buyers are still low-balling for no reason! I have a listing at $133k and received an offer at $80k. Huh? The house comps at $140k so the $133k is already priced strong for the area and price range.
Buyers are just following along with the drop in values and hoping their low offers will be accepted. Reality will eventually hit when we hit bottom.
Hi Sandy
The buyers are reading too much in the media that poorly reported. In many markets it's not uncommon to have multi contracts on the same home. We have to educate our buyers before we start to show them homes.
Good luck and success
Lou Ludwig
Yea your probably right about turnaround being fair play though. But sellers are still not totally blind they can only sell for what they can sell for.
I believe buyer who were pushed out of the market 5 years ago are still a little upset at the past sellers market and now want a bit of revenge. It's like, you had your sellers market, now it's the buyers turn to call the shots.
Hi Sandy, I agree that the low ball offers are probably clogging up the system on short sales, Lanre Folyan had a great line, something like : "The sellers didn't steal their home, so buyers don't expect to steal it either"... I'll go back and check his post to be sure I didn't totally destroy his thought!
On a much smaller scale, I wish I could go to the grocery store, and low ball an offer for my food! They'd just laugh, and kick my cart to the curb! Where does it all end??
I have a client who's furious with me because they had me submit an offer for $57,000 on a property listed at $210,000. The Seller rejected it outright and my buyers are demanding a counter offer. How do you reason with people like this?
Hi Gary, So true, the reality of it is that, as you mentioned, it's all about supply and demand.
Donna, There doesn't seem to be an rhyme or reason to the offers being thrown out there today.
Robert, I agree that buyers are just hoping that their offers will be accepted.
Hi Lou, Education is key, I agree.
Charles, So true that sellers can only sell for what they can sell for.
Hi Miss Mary, Well said that sellers didn't steal their homes, therefore buyers cannot expect to steal it either.
Susan, Oh, I just hate that. It's a waste of everyone's time, and it alienates the seller.