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Old 05-28-2013, 12:50 PM
 
2,623 posts, read 4,312,992 times
Reputation: 2072

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Quote:
Originally Posted by Ulysses61 View Post
The house I want has 1358 sq. feet and only one bedroom. There are no houses that small or with one bedroom that have sold in this town for 2 years. So the comps they used were homes with 1800-2000 square feet with 3 bedrooms. That's all that was available for comparison. Some of these places were turn key, some needed work. None sold for more than $500,000. Many sold for $450,000.

Many had lot sizes double the lot size of the home I want. Were these comps featured in a magazine? No. But they are all nice and suitable for guests and families. A one bedroom place is not.

I have researched the seller. He was the hedge fund manager of a multi-billion dollar company and retired in 2008. He is fabulously wealthy and this was verified on the Internet. As I said, he had multiple homes all over the place, including Australia and Hawaii. So it's not real estate chatter than the seller is rich. He's rich beyond belief.

I don't expect him to give it away. I just find it ironic that a billionaire (literally) won't come down $20,000 or so from an already ludicrously inflated asking price. 20 grand is change to him, but is a lot to most of us "normal folks." That was my only point. Homes in this community that are fairly priced (or are foreclosures) have literally 40 offers in the first hour. People don't even physically inspect the house, they put the offer in through Docu Sign.

This home has now been on the market over 2 weeks. The only offers were my initial offer of $475,000, and then $485,000. He said he isn't interested in these low bids and will wait it out. No one else has offered him a dime. I am going to wait a couple weeks and offer $500,000 and see what happens.
Thanks for the additional info re: the "comps." It's still possible that he's put in far more in upgrades (including designer fees) than have the other sellers. That may be why the magazine considered his unit worthy of a feature. Also, location is key, so if he has a waterfront property and the others did not, that may account for some of the price difference. There must be SOME reason why you are so attracted to it over alternatives.

OTOH, you may be entirely correct that no matter what the +/-s are, his house is currently overpriced for the market, since there is no really good match in recent sales. If so, your wait and re-bid strategy may work.

I also don't find it ironic that he won't come down in price right now. Many people who built a fortune (rather than inheriting it) did so by watching money very carefully, maybe too carefully. Also, as others have said, he may be reacting emotionally, but he can afford to indulge his emotions.

Finally, how do you know what other offers he had or didn't have? Did you speak with him directly? His agent should not be disclosing information like that as long as the house is unsold and I'll let Realtors or lawyers chime in, but I believe that in some states the agent would be breaching his/her fiduciary duty by doing so.

I still think you'd be wise to look for other properties that you may enjoy putting your own "stamp" on and that may be easier to re-sell later (e.g., 2 bedroom).
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Old 05-28-2013, 01:06 PM
 
Location: Living on the Coast in Oxnard CA
15,346 posts, read 25,361,579 times
Reputation: 19540
What would it cost you to buy another home, remodel it in a similar manner, and move in? What I am saying is it easier to buy the current home at over $500,000 than it would to purchase another lesser home and redo it? If the cost to bring another home is higher than what you would pay for this home then buy the home at the higher price.
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Old 05-29-2013, 04:20 PM
 
Location: SDL/PDX/RDU
4,218 posts, read 2,192,081 times
Reputation: 5095
A little story about 'comps'. I guess I would be considered a 'stubborn seller' based on the OP's definition. Similar scenario, offer was made early after listing at roughly the same percentage down from listing price. Our perspective buyer was fixated on comps as well. From my seller point of view, there was a nearly identical comp available. It was the condo unit a few floors down, same location in the building that sold for slightly below our asking one year prior. Only difference in the properties was the 'comp' had an outdoor space.

Back of the envelop calculations gave increased value for the outdoor space offset by lower floor in building plus increase in overall values in time since sale. A wash, for all intents and purposes. The buyer refused to accept the variables, and I refused to ignore them. Moral of the story: Comps are not gospel. They are just one of many tools used in valuation.

End of story, during the back and forth a second buyer came into the picture, made a strong offer and the first buyer closed the deal with asking price. So much for comps...

Last edited by take57; 05-29-2013 at 04:31 PM..
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Old 05-29-2013, 08:26 PM
 
518 posts, read 1,303,714 times
Reputation: 322
Walk away or accept his or her terms
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Old 05-29-2013, 09:52 PM
 
Location: Mammoth Lakes, CA
3,081 posts, read 6,568,748 times
Reputation: 7079
Quote:
Finally, how do you know what other offers he had or didn't have? Did you speak with him directly? His agent should not be disclosing information like that.
The sellers agent is telling my buyers agent this information. Then she passes it along to me. She said again today, "We have had many lookers, but no offers except yours."
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Old 05-29-2013, 09:56 PM
 
Location: Mammoth Lakes, CA
3,081 posts, read 6,568,748 times
Reputation: 7079
Quote:
Why are you so in love with house?
I never said I was in love with it. In fact, there are many things about this house I don't like at all. I would never choose this house as a primary residence, it's impossible! I am in love with the town this home is in. For the past 15 years I've driven 600 miles round trip every summer/fall weekend to hike in his place. I've always stayed in hotels. Now I want a house there for comfort and retirement.
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Old 05-29-2013, 10:55 PM
 
335 posts, read 558,382 times
Reputation: 412
Quote:
Originally Posted by Rakin View Post
You low balled a home that had been on the market 2 days

No wonder the Seller doesn't even consider you serious. His list price is fairly close to what he wants and he's not real negotiable right now.

Go find a home that's in your price range.

Edit: Give him your best offer. If it's not good enough for either of you, walk away.
the seller is NOT a stubborn seller

the best answer to the orig posters query iis from Rakin ............and if you really really want this home BUY IT for the 500k or find something you can afford........... keep lowballing and you will be looking for a very long time.... and btw there maybe someone who will snatch it before you do so again YOU REALLY WANT THIS HOME BE SERIOUS AN BUY IT NOW FOR 500k
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