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Yep. I've been casually watching one here for a couple of years that's out of line with the market by about 150k or even up to 200k. It's in a hot market too where similar properties move well within 2 months and many within 2 weeks. In the end, the seller isn't motivated to sell and is not really serious. People who are serious have a plan and while we all know that things can happen to delay things, when we are talking several months or a year or more, it's not someone motivated. Just a passive fishing exercise (put the hook out - not even properly baited - and wait - something is bound to come along some day). People who are moving often have kids in school, another property to buy, jobs, etc. - in other words, some kind of compelling events or timeframes that they need to work within.
I don't know what you mean by the listing agent 'fueling' him. Do you mean that you think the listing agent is advising to keep the price up? Generally I don't think that's the case. Agents want to move properties. That's their job. Actually, it's more common for an agent to be criticized for being too quick to call for price reductions rather than for the house to sit there at an unrealistic price.
With the house i've been watching, I think that the agent must be a saint for being patient and doing what the seller is asking them to do. From speaking to the agent, it's pretty clear that the amount of time/money spent by the agent is minimal as very very few people have been interested at this price. It's a somewhat unique period property and I think that's how the seller justifies it. Like someone will come along absolutely loving it and paying over the odds to have it. maybe they just think the right buyer who really appreciates the home just hasn't come along yet. But although all houses like this are one of a kinds, other period properties with the same level of character come up regularly. Agent is being professional but his frustration shows through.
In the end, it's not an attractive proposition due to the seller not being serious or motivated. What can a buyer do in this situation?
-You can just sit and watch and wait - do nothing but speak to the agent now and again to get info. Plan when to come in and try to time it.
-Come in aggressively and rapid fire (e.g. directly challenging their seriousness from the start, act like you really want to do a deal but at the market price, ask what they need to do a deal, use language like "if you're not serious we're not going to waste our time, etc)
-Come in passively (put in your low offer and act like you don't care and operate at their pace). Offer shows you are serious (even if it's low) but the ball is in their court.
Lots of different strategies but approach it like a slow chess game rather than a serious purchase process. They are playing games so you need to as well. You have to not care too much and don't get your heart wrapped up in it. In my case, if I decide to make a move on this place it will likely be with the aggressive approach. they had no offers according to the agent so trying to rip them out of the molasses sounds like the best approach. You also can get a fast resolution and it's clear if you will proceed or walk away.
You're not buying bologna by the pound here and you shouldn't be looking at buying a house by the square foot. To do so takes all the things like location, condition, property size, amenities and schools out of the equation.
This right here. I have seen many deals fail because one party was fixated on price per square foot to the exclusion of the differences in the comps they used to arrive at a "fair" $/sf. Unless the comps were identical in every respect, $/sf is just a starting point to arrive at fair value. Not to mention, I might be willing to overpay for my "dream home".
sounds like OP is in Asheville, NC which has some crazy prices.
If you've been a buyer or seller multiple times, or an agent with expertise, you've dealt with "crazy sellers" that insist their home is worth 20% more than it really is.
A lot of sellers in this area (Asheville and surrounding) purchased during the real estate bubble prior to 2007 and paid inflated prices. They are trying to recoup what they paid and the market hasn't bounced back that far yet. We have one house in our neighborhood that has been on and off the market for several years. At one point, they were asking almost $1 million for it and now are down in the $650K range. There is also another house that's been on the market for the last year and they are priced in the $675K range, both have magnificent views.
Our home had been on the market on and off for almost 10 years. The sellers took a significant loss on it from what they paid for it in 2006. For a long time, they were listing it for what they paid or even higher, which is why they were getting no interest. It also needed some updating, which we did after we purchased it. We have fabulous views and our home is at the lower end of the price range for our neighborhood.
I was in the mortgage business right up until 2007. I saw how inflated prices were in the mountains and at the coast, along with the rest of the state. Back then I knew I could never afford to live anywhere but Raleigh due to the prices at either end of the state. Thankfully the prices came back down enough to where we could buy up here. Now they are rising again.
Last edited by goldenlove; 08-06-2017 at 06:23 AM..
A lot of sellers in this area (Asheville and surrounding) purchased during the real estate bubble prior to 2007 and paid inflated prices. They are trying to recoup what they paid and the market hasn't bounced back that far yet. We have one house in our neighborhood that has been on and off the market for several years. At one point, they were asking almost $1 million for it and now are down in the $650K range. There is also another house that's been on the market for the last year and they are priced in the $675K range, both have magnificent views.
Our home had been on the market on and off for almost 10 years. The sellers took a significant loss on it from what they paid for it in 2007. For a long time, they were listing it for what they paid or even higher, which is why they were getting no interest. It also needed some updating, which we did after we purchased it. We have fabulous views and our home is at the lower end of the price range for our neighborhood.
I was in the mortgage business right up until 2007. I saw how inflated prices were in the mountains and at the coast, along with the rest of the state. Back then I knew I could never afford to live anywhere but Raleigh due to the prices at either end of the state. Thankfully the prices came back down enough to where we could buy up here. Now they are rising again.
Yes, we are in Asheville NC but the house is as far to the county line as it can be. Not in city limits.
They built it in the 80s for 80k and have never updated it. I pulled tax records on the one we want and noticed he bought a new place for 470k in march. I think he doesn't want a mortgage as he's in his 80s. The jokes on him because now he owes another year of taxes plus he's paying on his mortgage for every month he sits.
I really feel like if the price he wanted was reasonable he would have had an offer by now. I know others said ignore the price per sq foot, but if we need to sell it and we have to be at a price that is way out of line with the rest of the market due to what we paid, we might end up unable to move it like him.
I think my real mistake was telling them we loved it despite the quirks. Oh well. Just trying to come to terms with having to walk away. Licking my wounds so to speak. It was nice dreaming while it lasted.
Yes, we are in Asheville NC but the house is as far to the county line as it can be. Not in city limits.
They built it in the 80s for 80k and have never updated it. I pulled tax records on the one we want and noticed he bought a new place for 470k in march. I think he doesn't want a mortgage as he's in his 80s. The jokes on him because now he owes another year of taxes plus he's paying on his mortgage for every month he sits.
I really feel like if the price he wanted was reasonable he would have had an offer by now. I know others said ignore the price per sq foot, but if we need to sell it and we have to be at a price that is way out of line with the rest of the market due to what we paid, we might end up unable to move it like him.
I think my real mistake was telling them we loved it despite the quirks. Oh well. Just trying to come to terms with having to walk away. Licking my wounds so to speak. It was nice dreaming while it lasted.
That often is costly.
Or as I often tell my sellers at that point: "We have your buyer...."
As mentioned hes not motivated. If he gets a nibble near his price he'll sell. If not, oh well hes content to take the property with him into his final sunset.
Yes- usually these are the homes that sit on the market while others are sold all around them. I want to live in a specific area and there are currently a few I would purchase but the seller's price are not realistic and are in hopes someone will come along with more money than sense. This does happen & if your not in a hurry to sell then it makes sense.
I had my dream house come up and I did put in a offer but of course the seller scoffed at my offer- I had my agent verbally say I would come up but the selling agent claimed the owner had an appraisal which stated a much higher price but would not share the appraisal with us. The seller did come down twice but the house was still priced too high but in the end someone did come along & I feel did pay a substantial premium for the house- they may or may not get their full investment back- their issue or non-issue. The house was the nicest in the neighborhood for sure but I just couldn't wrap my head around the price seller wanted. As mentioned there are currently a few other's in the same neighborhood that are not selling. I think the market may be cooling a bit & will further providing interest rates rise and if the new tax proposal of eliminating the mortgage tax deduction.
It all comes down to what is the motivation- is it a pain point or a pleasure point they are accomplishing.
If I am selling a home but I am in no hurry for the cash, then I list the house at what I believe is the value of the home, NOT the buyer. I own property that I will sit on indefinitely to get the price I believe is reasonable. Just because the average buyer thinks it's inflated is not my problem. Real estate usually goes UP in value with time. If I am in no hurry to sell, why would I lower the price? And, if you have driven by the property for 10 years, believing it was your "dream home" perhaps you need to find a new one. I have a property on the market now that the realtor is pressuring me to lower the price on after 1 year on the market but, I know the area, know the comps, and know what additional factors my property has that makes it a great find. If it sits for 5 or 10 years, so be it. I don't need the cash and I'm not giving it away.
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