What do you think will happen to Sarasota realestate? (real estate market, leases)

[vicarjoe]

Originally Posted by blueherons

Congrats!

I just want to point out (I'm in real estate in Fort Lauderdale, the other coast), that people coming in from out of town making all cash offers have a bad habit of lowballing almost insulting offers. I've literally cringed presenting some.

One of my clients offered $240K on a $320K condo and I couldn't make him understand it would not fly. It didn't and the sellers, offended didn't counter.

As much as I try to educate buyers, sometimes it is hard.

There really isn't a big difference in price with cash or conventional buyers over here.

Maybe that is why you were getting really low offers?

Anyway, good luck with this!

Its a cash offer, with 5k down. Not that that really matters. Well it kind of does. If someone is willing to put that much down they are usually serious. Again if it was a million dollar property that would not be that high. But its a 150k property so its a nice down. I understand they can get out of the contract because there is cob webs in the corner but if they are willing to put it down they are usually serious. I have seen people put down 200 dollars.

[Zach Ashton]

Down payments aren't significant, the contract is.

[kiggy]

Originally Posted by Zach Ashton

If they turn around and elect to do a cash out financing I bet you'll have another great knowitall answer, eh ? Mr Answerman

dpbarr2000 don't you have better things to do, like actually SELL some real estate?

[DycFerrandino]

Originally Posted by Zach Ashton

Down payments aren't significant, the contract is.

You are correct ! it doesn't matter if the DP is 2.00, it depends on what the sales contract stipulate and requires. Intent doesn't matter !

[craigiri]

Originally Posted by blueherons

Congrats!

I just want to point out (I'm in real estate in Fort Lauderdale, the other coast), that people coming in from out of town making all cash offers have a bad habit of lowballing almost insulting offers. I've literally cringed presenting some.

As much as I try to educate buyers, sometimes it is hard.

Just as an aside, my dad got quite wealthy in Real Estate by having understanding agents who would present his ridiculous lowball offers (often 30-40% below asking price)....

Guess what? He ended up buying a lot of the stuff and the sellers were happy!

The market price, IMHO, is what a property could sell and settle for in 60-120 days - to multiple buyers...meaning if one falls through, there is another waiting since the property is at market value.

I'm sure lots of realtors told people their stuff was worth 2 and 3X the price it is now.....back in 2005-2007.

Those lowball bids are all part of establishing what the real price is.

If a property owner is stubborn and insisting on getting 300K (example), then one or two offers of 200K or 225K could make them start thinking about the real value.

It's always interesting when I see some prices consider lowball - since they are only 30% higher than the person paid for their house 5 or 6 years ago! It's as if people assume Real Estate always goes up...haven't learned yet despite trillions in equity going down the toilet recently.

[upgrader]

Originally Posted by craigiri

Just as an aside, my dad got quite wealthy in Real Estate by having understanding agents who would present his ridiculous lowball offers (often 30-40% below asking price)....

Guess what? He ended up buying a lot of the stuff and the sellers were happy!

The market price, IMHO, is what a property could sell and settle for in 60-120 days - to multiple buyers...meaning if one falls through, there is another waiting since the property is at market value.

I'm sure lots of realtors told people their stuff was worth 2 and 3X the price it is now.....back in 2005-2007.

Those lowball bids are all part of establishing what the real price is.

If a property owner is stubborn and insisting on getting 300K (example), then one or two offers of 200K or 225K could make them start thinking about the real value.

It's always interesting when I see some prices consider lowball - since they are only 30% higher than the person paid for their house 5 or 6 years ago! It's as if people assume Real Estate always goes up...haven't learned yet despite trillions in equity going down the toilet recently.

Wow, such a really great post. I'd rep you again, but the rep clock hasn't run out.

All that belief in "establishing what the real price is", the market value, makes you sound like a mythical republican.

Sorry, I couldn't help bringing up politics. But since you gave such great advice, I figured you wouldn't mind getting an oddball complement.

And it's great that we potential buyers can see the purchase history of any home of interest.

This Internet thing seems to be working out

[DycFerrandino]

An argument could be made that owning a physical house ceased being any kind of investment at all. In some cases history has shown that buying house at these inflated prices is a losing proposition if not downright stupid.

Some people around here actually think that every piece of property or SF house is a reasonable, just, or good buy. You can't believe the hype of real estate agents around here at all. All they did was continue to hype and bid up properties all the way through the last bust. The only difference now is that many agents are just lying about it, or choosing to ignore the obvious unjustified increase in prices we see now in certain pockets. It seems that nobody learns around here, except people that are simply liars or living within this bubble, which can not be sustained. We've seen this movie before. The really arrogant ones try to assert that the market is solely and primarily established between one seller and one buyer. That is patently simplistic therefore wrong. There are numerous factors in how one successfully falsely inflates any market, that includes the SF housing market here in this area. They use collusion, false bids, paid for high/low appraisals, glossy marketing, open house celebrations, parade of home "tours", and of ton of other methodologies.

[kimmerthy]

We've been looking at the SF Gulf Coast and East MLS, for a couple of years now. I can definitely tell the prices are inflated, and waiting for the bubble to burst. I'm shocked at how many people are buying these houses at these inflated prices, esp when just last year some were $200k cheaper. I totally get supply and demand, but that doesn't seem to be the case here, and someone other than the "market" is controlling things here. Oh well, I feel bad for those people who are going to lose their asses on property, but again, they're probably the ones that swoop in with all cash and are OK, or don't care, if they lose any money. I certainly hope this is the case actually, not some other poor soul who will end up in foreclosure down the road.
I don't like the fact that we've noticed a change or "tampering" with of MLS Property History. There have been several properties we've had our eyes on, for either purchase, or just to see what the property actually goes for, and being able to view the past Property History before, we are not able to now, in the last couple of months, previous listed and sold prices have been removed, showing N/A, or just not there. Many properties have been listed and delisted over the years, but we've seen many that we know we saw the previous listed prices (and remember the previous price) are no longer there. It is all very sketchy to me. I guess the key is to find a real estate agent you trust, and who is looking out for you, not their own pocket. (Sorry for the rambling )

[bbronston]

Originally Posted by kimmerthy

I don't like the fact that we've noticed a change or "tampering" with of MLS Property History. There have been several properties we've had our eyes on, for either purchase, or just to see what the property actually goes for, and being able to view the past Property History before, we are not able to now, in the last couple of months, previous listed and sold prices have been removed, showing N/A, or just not there. Many properties have been listed and delisted over the years, but we've seen many that we know we saw the previous listed prices (and remember the previous price) are no longer there.

Since you mentioned getting an agent, I doubt that you are looking at the MLS. To my knowledge, no history can be removed from the system by an agent or broker. Not everything in our MLS gets fed to the real estate websites out on the web. In fact, only limited data is fed to the other websites otherwise we (agents) wouldn't need to pay our fees and dues for the service. I don't know if the type of information available to the public websites can change (I wouldn't think so but I suppose it is possible) so I'm not clear on why you might be able to see something one day and not the next. Where on the web are you looking? Do you have an example of a property where that happened?

[DycFerrandino]

Originally Posted by kimmerthy

I don't like the fact that we've noticed a change or "tampering" with of MLS Property History. There have been several properties we've had our eyes on, for either purchase, or just to see what the property actually goes for, and being able to view the past Property History before, we are not able to now, in the last couple of months, previous listed and sold prices have been removed, showing N/A, or just not there. Many properties have been listed and delisted over the years, but we've seen many that we know we saw the previous listed prices (and remember the previous price) are no longer there. It is all very sketchy to me. I guess the key is to find a real estate agent you trust, and who is looking out for you, not their own pocket. (Sorry for the rambling )

I have experienced this first hand myself - including one family member as well. This is factual. I have discovered this as last as last month on a new house down the road near Bonita. There definitely has been manipulation (intentional or by pure accident??) of pricing data, and pricing history. It's not illegal, but seems unethical and contrived to me as a buyer and investor. However, I am not surprised - I am only surprised that someone else has noticed and confirmed this as well around here. There is no reason to automatically trust any real estate agent. They have no obligation to look out for you. They are not your attorney or doctor. Do you trust your local car salesman? I don't and I hope you don't either.