Sometimes I have to wonder…
Here are the particulars:
- Gated condo in a golf course community. Lovely home. Grossly overpriced at $245K.
- Languishing on the market for 201 days.
- Last unit sold in the development was in August 2007 for $228K. Same model. A perfect comp, other than it sold six months ago.
Our buyers are from Canada. Down for a few days to view homes and they like this development. We figure OK, the last sale was $228K, prices have dropped since then roughly 7%. That’d put it at $212K. So let’s offer $200K and see where we go from there. Cash offer, with proof of funds available. We expect a counter.
(And before anyone jumps in, please keep in mind the offer price was derived from much more in-depth analysis. I’m summarizing here for brevity — something I don’t usually excel in…)
Lo and behold we get a counter:
- Price to be $230K (higher than the last sale six months ago, in a generally declining market mind you).
- Doubling of the buyer’s earnest money amount (in an all cash deal with closing just 11 days post inspection period???)
- Adding conditions that make the buyer’s earnest money non-refundable. (WTF?)
- Notice that the HOA fees were 14% higher than what was in the listing (uhm, try updating the MLS. It takes 15 seconds).
- Changing the choice of the buyer’s title company (let’s make it as inconvenient as possible for our out-of-country buyers).
Are you just playing a game, listing your home hoping the combination of ignorant buyer and lousy agent stumble across it?
Buyers have a bazillion other homes to chose from. Well, maybe half a bazillion because it’s likely there are a bunch of other listings in the mix that the owners really have no intention of selling.
If you really want to sell your home here are a few simple tips.
Price it properly. Wanting 20% more than it’s worth is understandable, but it’s not realistic.
Make sure the info in your listing is updated. Things like getting notice of increased HOA fees tend to annoy people. Annoying a prospective buyer in this market is generally a bad idea.
If the buyer presents solid loan qualifications or is a bona fide cash buyer, don’t get greedy with earnest money demands.
You don’t have to suck up to buyers, but really in the grand scheme of things, does the title company really matter? (see “do not annoy buyer” above)
It’s a buyers market in Phoenix (and many other locations across the country). Like it or not, buyers are pretty much in the driver’s seat. If you get an offer, it’s a proclamation that “Hey! Someone is interested in purchasing your home!” To squelch that right out of the gate is just silly.
And it is proof positive you don’t really want to sell your home.
[tags]Home selling tips[/tags]