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Unread 01-23-2009, 03:01 AM
 
Location: Miller Place NY
1,052 posts, read 1,744,368 times
Reputation: 102
EASY these days.

"IF" you have the $$$$$$$$$$$$$$$, AND you don't have to go, with your "hat in hand" to a bank, you are in the driver's seat !
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Unread 01-23-2009, 06:12 AM
 
335 posts, read 478,060 times
Reputation: 68
Quote:
Originally Posted by TomMoser View Post
Although we would love for it to be an exact science, getting the price right on a home is actually more of an art. You need to take many factors into consideration including the seller's motivation. There is still a lot of "seller denial" going on, but I am begining to see prices come down, in some cases, to more realistic levels. Determine what the home is worth to you (your maximum price), then offer about 5% to 7% less. By the way, statistically most homes sold in the last six months sold for about 4% less then the asking price.
WAAAAAIT JUST A SECOND: PrudentialElliman's Q4 report on most areas of LI was just released and "discounts off list prices" were much higher than 4% in most areas - - Nassau and Suffolk discounts were between 6.5-11%. Go to their website and download their Quarterly market reports.

As a buyer, this is the time to negotiate hard - - any offers a RE or seller get are like GOLD now - - and likely will be for the next few years. You need to also factor in that prices will "likely" decline another 10-20% over the next 18-24 months.....so you absolutely DO NOT want to make an offer that does not take this into account!!!!!!!!

YOU MUST DO YOUR OWN RESEARCH FIRST BEFORE MAKING AN OFFER!!!!! YOU CAN DO THE SAME RESEARCH - - EVEN BETTER - - THAN SELLERS OR RE's IF YOU REALLY WANT TO MAKE THE EFFORT - -ALL THE INFORMATION IS OUT THERE FOR YOU TO SAVE TENS OF THOUSANDS OF DOLLARS DURING THIS RECESSION. REMEMBER- - THE REAL ESTATE AGENT IS WORKING FOR THE SELLER - - NOT YOU.

Last edited by modmondays; 01-23-2009 at 06:26 AM..
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Unread 01-23-2009, 06:43 AM
 
Location: Huntington, NY
7,302 posts, read 8,973,301 times
Reputation: 3100
Quote:
Originally Posted by modmondays View Post
REMEMBER- - THE REAL ESTATE AGENT IS WORKING FOR THE SELLER - - NOT YOU.
Not if you use a Buyer's Agent!
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Unread 01-23-2009, 06:46 AM
 
Location: Huntington, NY
7,302 posts, read 8,973,301 times
Reputation: 3100
Quote:
Originally Posted by modmondays View Post
You need to also factor in that prices will "likely" decline another 10-20% over the next 18-24 months...
And you base this "likely" prognosis on what? Please share.

Oh, and are you talking about the overpriced properties, or the ones that are asking a reality-based price?
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Unread 01-23-2009, 09:10 AM
 
1,257 posts, read 2,088,233 times
Reputation: 646
Don't get too worked up over Tom's advice ModMondays, the post you replied to was about 18 months old.

Is that 6.5% -11% off of origional list, or final list? Its still not much.

My thoughts on this is more along the lines of what Dave Barry's quote was. You're still looking at 5% maybe 10% off of what the list is. most people don't go below that and its almost pointless to enter negotiations unless you're willing to pay at least 90% of the asking.

I'm not saying houses aren't overpriced in some cases by 30%. I'm just saying that no one is going to take 30% less than asking. They'll sit and sit and sit. Prices will get reduced. Someone will post to a RE board saying their house has sat for 18 months and no one will look at it, offer on it etc and I've changed RE agents, etc etc until finnally they'll drop the price to a realistic level, someone will come and offer 10% less, they'll settle on 5% less and we're back to where I started.

The future is anyone's guess. factoring in a 20% drop in price is going to be difficult to do. Were you able to do that?

If you beleive that the closing price, not asking but closing price of transactions today is overpriced by 20% and you have mobility, I'd vote for sitting this out rather than trying to price in a 20% discount from closing prices today.
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Unread 01-23-2009, 03:02 PM
 
Location: Huntington
853 posts, read 1,584,001 times
Reputation: 439
Quote:
Originally Posted by Chrisk327 View Post
The future is anyone's guess. factoring in a 20% drop in price is going to be difficult to do. Were you able to do that?

If you beleive that the closing price, not asking but closing price of transactions today is overpriced by 20% and you have mobility, I'd vote for sitting this out rather than trying to price in a 20% discount from closing prices today.
Out of curiosity, what formula did you use to come up with what seems like a random 20%? Is this your personal opinion? Or did you get the number from some random article somewhere that used the number 20, they same way another article may have used the number 5. Would really appreciate an explanation of the 20%.

Currently I have a house up for sale in the Three Village area due to neccessity - no it's not a fire sale. Nowhere near financial trouble (that would take about another 5 - 6+ years to happen perhaps, no exaggeration, and I'm thinking by that time the market will have definitely turned around and heading upwards). But we would like to unload the house at this time nevertheless, and just move on with our lives. Not everyone is in trouble, and it's a mistake to think that.

So far we've have one deal fall through due to the buyers being turned down for a mortgage; that held us up 2.5 months - it took that long for them to conclude they can't afford to even buy a garage. They won't be back.

Since then we've had several lowball offers anywhere from 12 - 15% under the extremely reasonable and fair asking price. One came in very recently with the buyers citing their own comps to their realtor they based on Centereach sales - a completely different area from where our house is. Like comparing oranges to apples, and location of course is the key in real estate. They actually went to a different town to get their numbers. Their little game lasted for about .5 seconds with their own realtor, my realtor and myself. A couple of operators looking to steal sellers' $. Some buyers out there will try anything.

So, this is coming from a dreaded seller - we're obviously looking to get a good price on our house without giving it away and being robbed by operators. We would be happy with selling it for around 5% under the asking price which at this point in time is very reasonable, this being reflected in the amount of activity and showings the house has had.

If a house is priced attractively it will get a lot of action and some bids, mostly lowballs in this buyers' market, and at some point the right buyer who really wants the house and isn't just trying to "steal" money from the sellers will make a fair bid that will be accepted.

One last thing, it's come to our attention through our personal experience with this market that most of the buyers in this buyers' market really don't care too much about the house they are bidding on - whether or not it fits their family's needs, etc. They're looking for a quick kill financially and to flip it when the housing market rebounds. In other words, it's all about $ right now. Not about where they're actually going to live and be happy. It feels like we're dealing with soulless operators.
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Unread 01-23-2009, 03:30 PM
 
2,927 posts, read 5,102,238 times
Reputation: 728
Buyers, indeed, feel very empowered these days and there are many of them running around making extreme low ball offers. Very few of them end up getting accepted.

If a person is really serious about buying a house, they should look at houses that are priced within reason. Even if a house is not "worth" what the seller is asking for it, they are conviced that they have it priced right, and it is doubtful that they will entertain offers that are far below asking.

When you have a realistic seller and a realistic buyer the deal gets done. If either party has unrealistic expectations it does not.
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Unread 01-23-2009, 05:39 PM
 
Location: NY
1,416 posts, read 3,149,549 times
Reputation: 518
Quote:
Originally Posted by TomMoser View Post
When you have a realistic seller and a realistic buyer the deal gets done.
Otherwise known as a Match Made In Heaven!

But what we've been seeing for as long as I can remember is that at least one party is stuck in an emotion-based price mindset. Either the seller is in denial about what his house is really worth to a buyer looking at it from an objective, financially realistic viewpoint; or the buyer is in denial about how much house he "should" be able to get for what he's willing or able to spend.

Sometimes both are in denial but at least in that situation there is very little time wasted in fruitless negotiation.
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Unread 01-23-2009, 05:51 PM
 
335 posts, read 478,060 times
Reputation: 68
Quote:
Originally Posted by Chrisk327 View Post
Don't get too worked up over Tom's advice ModMondays, the post you replied to was about 18 months old.

Is that 6.5% -11% off of origional list, or final list? Its still not much.

My thoughts on this is more along the lines of what Dave Barry's quote was. You're still looking at 5% maybe 10% off of what the list is. most people don't go below that and its almost pointless to enter negotiations unless you're willing to pay at least 90% of the asking.

I'm not saying houses aren't overpriced in some cases by 30%. I'm just saying that no one is going to take 30% less than asking. They'll sit and sit and sit. Prices will get reduced. Someone will post to a RE board saying their house has sat for 18 months and no one will look at it, offer on it etc and I've changed RE agents, etc etc until finnally they'll drop the price to a realistic level, someone will come and offer 10% less, they'll settle on 5% less and we're back to where I started.

The future is anyone's guess. factoring in a 20% drop in price is going to be difficult to do. Were you able to do that?

If you beleive that the closing price, not asking but closing price of transactions today is overpriced by 20% and you have mobility, I'd vote for sitting this out rather than trying to price in a 20% discount from closing prices today.
18 month old posts???? why is that still being posted??? LOL......
my quote says 10-20%: based completely on secondary research methodologies (CNBC, Newsday, Case/Schiller)-- basically anything BUT the NAR. Numbers are all over the place, but the markets that are picking up slightly now had high foreclosure rates and overpriced homes from the bubble - - i.e.: LI. Also: please factor in the Recession, all-time high inventory and unemployment rising to post-9/11 levels - - not a good brew for "fingers-crossed" 5% drop over next 18 months.
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Unread 01-23-2009, 06:57 PM
 
335 posts, read 478,060 times
Reputation: 68
Quote:
Originally Posted by Elke Mariotti View Post
Not if you use a Buyer's Agent!
But I have heard some horror stories about them too -- remember, "Buyers Agents" were "Sellers Agents" during the bubble.....LOL
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