how much to offer on condo? (Orlando: for sale, real estate market, condominium)

[Lookin4work918]

Any idea in this market, what is a good price to buy a condo in the Metrowest area.. IE: Ventura at Stonebridge?
Thanks

[Jammie]

Originally Posted by Lookin4work918

Any idea in this market, what is a good price to buy a condo in the Metrowest area.. IE: Ventura at Stonebridge?
Thanks

IMHO~offer 25% of the listed price. Several months ago I had posted asking if that would be acceptable because I had been reading about it. Some people said it wouldn't be and they wouldn't even counter offer at such a ridiculous price. I thought it would be a place to at least start. But more time has now elapsed and the market is continuing on it's decline and you wouldn't want to overpay while it's still continuing going down. So many people bought and their condos and houses now aren't worth what they paid for them so they're basically stuck in their own homes. That would definitely be a situation one would want to avoid. If it's someone who bought the condo three or more years ago, they may be in the position to deal with you at that percentage.

[Lookin4work918]

Thanks for your imput...

OK, if they are asking $200,000 - offer $150,00 to start and open up conversation.... I have looked everywhere for comps but all seems either no sales or crazy dollar amounts such us $25,000 or ??

I know the area is new and will come back with the Medical School going in...I just do not think I will be there more then 2 years and hate to sit on it for resale if I had too.

Any other ideas.imput...etc..

Thank you

[Prichard]

If you really want a condo - wait for a year or two, then buy one. You ain't seen nothin yet boys and girls. Personally, I wouldn't want to be one of the 50% owners of a condo who is actually occupying the building, when the bank or bankruptcy trustee is holding the other 50%.

My motto has allways been "if it don't come with dirt, it's just a bunch of high-priced nothing".

[Jfunk]

How badly do you want the condo? This should determine what you should offer.

I would definitely offer on the low side but do not offer too low where the Owner does not think you are serious or worse is offended and cuts off all ties with you. This is a buyers market and there are several units available in Stonebridge so you have a little bit of an upper hand. The best thing to do is have your Realtor look at the comparable properties in Stonebridge that have sold in the last few months and offer him about 10% lower than any of the sold comparables. Good Luck, Jeff

[Rich_CD]

I'm also looking to buy a home in the Orlando area. I am a buffetology type person and look at what "actual" value is on items I purchase.

So, first off "peaks and valley". The real estate market has peaks and valleys just like other martkets and right now it is "most certainly" at a peak in prices. To estimate the "actual" value of a house/condo you need to just find it's value along the average historical appreciation line (I'm not educated in statistical theory, so I don't know the terminology well). But, that simply means if you draw a line along a chronological chart that shows average value of a comparable house/condo over the last say 50-60 years taking into consideration average appreciation. Then pick the spot for 2007 on that line, you'll have it's "proper" value. The line that marks average for the 50 years is what eliminates the peaks and valleys (booms and busts) of the market.

But, you do have to take into consideration "wants and needs". If you really want a particular item then you may be willing to pay more that it's actual value.

If you are looking to buy at actual value, you'll need to wait a while.

[Lookin4work918]

Thanks for all your advise. Asking is $209,000 with one year no monthly fees, I put in an offer for $169,000 (all cash to close 30 days) but.....There is TONS FOR sale in that unit and I have done all my research. The place is empty and has been for sale for over a year...
...my realtor came back with " a unit close by just sold for $205,000". NOt sure if that meant I am way out of my ballpark???

[Rich_CD]

Originally Posted by Lookin4work918

... Asking is $209,000 with one year no monthly fees, I put in an offer for $169,000 ...

...my realtor came back with " a unit close by just sold for $205,000". ...

Your research seems pretty good. I checked the current numbers and they are down ~20% from recent numbers. So, $40K off asking price is inline with the market. However, I'm not saying that it's inline with "actual" value for the property. I'm not an expert, but without doing the numbers I would think that $169K is a bit over "actual" value.

Your realtor? How much did you pay your realtor to do that research? If you payed nothing then that is what the research is worth, nothing. Realtors work for the seller, unless you are paying them a consulting fee (then they must come up with "actual" numbers or you can sue them). Realtors usually get a percentage of the selling price, which means (if they aren't insane) they want the price to be higher so they make more money.

Why do so many people miss that conflict of interest? The realtor wants you to spend the *most* money, because that is how they *make* the most money. A realtor is there to promote the seller's property. The buyer has to do their own homework to determine how much to pay.

[Jfunk]

I would ask your realtor to give you a list of all comparable sold properties in the last 6 months. This is an easy thing for your agent to do in a condominium complex since you are literally comparing apples to apples. A good agent should keep you informed of all of the like properties that have sold.

As far as the comment on how much did you pay your realtor? I hope you haven’t paid him/her a dime. Rich CD is correct in the fact that realtors get a percentage of the selling price but that does not necessarily mean that the realtor is working for the seller. I work for buyers all the time. In certain transactions I represent the buyer and not the seller. In other transactions I may represent the Seller and not the buyer. Yes I am paid a commission from the sales price of the property but that does not mean I am working for the seller. If it weren’t for a buyer I wouldn’t make a penny. Unless you are looking at a property that your agent has personally listed then he/she most likely has never even talked to the seller. You should read up on types of agency in real estate this will better clarify the different fiduciary obligations of your real estate agent has for either party.

Of course there are agents that want you to pay top dollar for a property but this isn’t the best practice when working with a buyer. Most real estate agents base their business largely on referrals. If I do not get you the best price for a property as a buyer are you going to refer me to any friends? Would you even consider purchasing another property from me if you found out that you overpaid for the one that you are in now? I want you to be happy with your transaction. Now if I am working for the seller my objectives have changed. Then I want the seller to get the highest price for the home. Once again this is all about agency and who the real estate agent is representing in the transaction.

[Rich_CD]

Originally Posted by Jfunk

I would ask your realtor to give you a list of all comparable sold properties in the last 6 months. ...

As far as the comment on how much did you pay your realtor? I hope you haven’t paid him/her a dime. Rich CD is correct in the fact that realtors get a percentage of the selling price but that does not necessarily mean that the realtor is working for the seller. ...

You should get a list of all properties sold, including the selling price (don't go by listed price) based on distance from the property you're looking at.

Hmm... An agent who makes money based on a % of the selling price has a conflict of interest with the buyer. The buyer wants to buy at the lowest price possible and the agent wants to make the most commission possible. If the buyer is to pay the least possible, the agent must make the least commission.

So, to eliminate "conflict of interest" the buyer cannot partner with an agent who benefits from a higher selling price. That's not to say you *can't* find a real estate agent who will help you get the lowest price. But, I suspect wine and a bedroom is the *only* way to get that.