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Well I have always been quick to bash realtors and sellers lately because they both seemed in denial of the price corrections going on here in NJ.
I have heard agents suggest mid 2006 prices were still VALID in todays market.
Well I went to go check out like 10 open houses this past weekend. Boy are realtors despeate and basically BEGGING for low ball offers. 6-9 months ago I think they looked down upon it but today I think that these low ball offers will be a wake up call to the sellers who are clinging to their 2006 or even 2005 prices.
Open house #1. I had two agents following me around the open house (annoying) and mentioning 1st time buyer credit (which I told them I don't qualify for) and then asking what I thought about the house and price. I told them I think it was still overpriced due to the condition of the house. (this one is priced high but not insanly high) They kept just asking for any offer and that the price can be tweaked. (the owner just dropped price $28k)
OPen house #x. Walked in and checked out house. On way out realtor asked what we thought. I said I wasn't liking the house (bi-level and not my thing) and then he asked what I thought about price. Before I could even answer he blurtted out the house was GROSSLY overpriced and he is not the listing agent but filling in. He didn't suggest what the price should be but he was ripping the price.
It was a nice to see these realtors who months ago where suggesting prices were much better off then they were, start to realize that holding on to those inflated prices are causing fewer sales and hurting them all in their pocketbooks. So I think this Spring is their chance to try and right the ship and get on sellers to lower prices.
My agent and I went into one house and before we even commented the agent said this house is priced $50k too much. (I think $75k but the idea was there)
So I am starting to see realtors get pissed and upset at the prices because they know houses aren't selling for those prices. Now some houses have sold at numbers that suprised me and my agent but they are very rare.
Nice change going on out there and hopefully that will cause the new SPRING crop to get the wake up call on their soon to be listings.
I recently had the same experience when I went to two open houses... both realtors said put any offer on the table, one even said "whatever I could afford". That's crazy! How bout $1?? HAhaha.
One of the best services a listing agent can do for a seller is to push hard to get the seller to set a realistic price from the start. If the seller prices agressively, he has a chance to sell; otherwise, he'll simply chase the market down, down, down ... and sell for much less down the road.
I guess lowball offers help give listing agents the evidence they need to convince sellers that their price is way too high.
Realtors are leaving the industry in droves and doing career changes. At this point they don't care what the price is, as long as it is a sale.
Less sales = less realtors, makes sense.
But the ones who are in the business long-term are pushing for the price drops. It could just be survival mode or it could just be acceptance of the market itself. Probably a little of both.
Either way it was a nice refreshing change of attitude compared to what I encountered last Fall.
Hopefully the inventory increases in the Spring and the mass amount of inventory pushes prices down even further and we can reach a bottom finally.
I am in the market to buy and have seen the same thing. I've been going to open houses and am on a couple of MLS mailing lists. Lots of price reductions have been coming through so maybe realtors and sellers are getting the message.
I implore anyone looking to buy to go put any offers in. Sellers may view them as low ball, but that is the market today. A lot of times a property is listed so high that no offers are presented.
In the same vein, I contacted a woman yesterday whose listing expired recently. The house was listed at $799K WAY over what the property is assessed at ($683K) and AMAZINGLY OVER market value. When I asked her how they determined the listing price she grew progressively shrill in defending her price. The home is a beautiful 3BR custom house on 9 acres but, regardless, should only be priced at $650K tops. She kept mentioning homes that sold in the $700's years ago (irrelevant) and home that are selling now in "her area" in the $800's (nonexistent).
These are people who are blatantly ignoring reality. There's not enough time or energy in the world to cope with them. Either a homeowner is realistic and will take my pricing recommendation seriously as someone who concentrates on real estate 24/7, or they can waste another agent's time. I'm VERY happy to be working with buyers in the meantime.
Why do agents even waste their time with these open houses? Don't they realize that their professional credibility is at stake? I would much rather spend my time cultivating new business with homeowners who WANT to SELL their homes, not LIST them. Big difference.
In any case, the thinning of the herd is welcomed. Having to compete with charlatans has been very frustrating to those of us who love what we do with a passion and strive for excellence in serving our clients.
In the same vein, I contacted a woman yesterday whose listing expired recently. The house was listed at $799K WAY over what the property is assessed at ($683K) and AMAZINGLY OVER market value. When I asked her how they determined the listing price she grew progressively shrill in defending her price. The home is a beautiful 3BR custom house on 9 acres but, regardless, should only be priced at $650K tops. She kept mentioning homes that sold in the $700's years ago (irrelevant) and home that are selling now in "her area" in the $800's (nonexistent).
These are people who are blatantly ignoring reality. There's not enough time or energy in the world to cope with them. Either a homeowner is realistic and will take my pricing recommendation seriously as someone who concentrates on real estate 24/7, or they can waste another agent's time. I'm VERY happy to be working with buyers in the meantime.
Why do agents even waste their time with these open houses? Don't they realize that their professional credibility is at stake? I would much rather spend my time cultivating new business with homeowners who WANT to SELL their homes, not LIST them. Big difference.
In any case, the thinning of the herd is welcomed. Having to compete with charlatans has been very frustrating to those of us who love what we do with a passion and strive for excellence in serving our clients.
And I think your sentence about sellers listing their homes vs selling their homes is on point. Buyers on here have been complaining left and right about prices and unrealistic asking prices for months now. We are basically complaining about the "listers" and not the "sellers".
Buyers should totally ignore asking prices right now. Concentrate on current sales, VERY current. 3 months or less max. And discount a little for continuing price declines.
The seller can only say no, and there are plenty of homes to buy as a substitute.
I am seeing lowball offers get accepted at times, sometimes without negotiations at all!
The truth is they are not lowball offers, they are true market value offers. The only thing that makes them "lowball" is their discount from the asking price.
But as I just said, asking prices should be ignored in this market. To me an asking price is only a statement by a seller that the house is available for sale. Nothing more.
-Marc
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