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The Villages FL Real Estate Blog

Learn inside information on buying/selling in The Villages, FL

By Alistair Barrett-Powell | Broker in The Villages, FL

Why wouldn't you put an offer to the owner?

I had such a huge reaction to this post on my own blog that I thought it would be only fair to share it on my Trulia blog too! Enjoy...

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Tortoise crossing the line

This post was actually spurred on by something that happened to me today which many realtors will confirm have happened to them in the past and those of you who are buyers and tenants must find preposterous and those of you who are sellers should either take note or have a long hard conversation with your realtors. I’m going to point out the specific property in question: 3191 Ohio Street, Coconut Grove, FL 33133 and I’m sure this happens all over the country but this is just ridiculous!

This property is really beautiful and it’s described as:

COCONUT GROVE TOWNHOUSE.IMMEDIATELY AVAILABLE.3BED,2.5BATHS,MARBLE FLOORS & BATHROOMS.WOODEN FLOORS ON SECOND FLOOR.STAINLESS STEEL APPLIANCES, GRANITE COUNTERS, LARGE KITCHEN, PATIO, LARGE CLOSET DOWNSTAIRS FOR STORAGE.EXTRA SPACE ON SECOND FLOOR,1CAR GARAGE AND DRIVEWAY CAN FIT UP TO 3 ADDITIONAL CARS DEPENDING ON SIZE.PETS MAX1 & LEASE OK.TENANT PAYS UTILITIES & LAWN&SHRUB CARE.WIRED FOR ADT SECURITY SERVICES.FIRST MONTH &TWO MONTHS SECURITY.ANNUAL LEASE.OPEN HOUSE TUESDAY APRIL 10 2012FROM 4:30 6:30PM

and listed for $2,800 per month which for a 1.929 sq/ft 3 bedroom townhouse in Coconut Grove doesn’t sound bad at all.

So my clients wanted to look at it, we got them in and after doing our research to see that the property had been on the market for 62 days (bearing in mind we in Miami are currently in a market where people are fighting over properties that go before Day 2, 62 days is showing there’s something wrong with the house – bear this analogy in mind)

So we put an offer in at $2,400 per month, 2 months security deposit, 12 month lease move in 72 hours later as it was immediately available and when it was signed we called the other realtor and put the offer to her – and this was the response:

“Oh no that is absurd. This house is THE BEST HOUSE IN MIAMI with amazing marble floors, the BEST kitchen, solid wood and that is an insulting offer. I am currently in home depot now buying things for the house to make it look amazing. We have had 10 offers around $2,300-$2,400 and I’m (ready for this) not even going to tell my landlord I got such an insulting offer and I’m insulted at you for even bothering to waste my time going to put this offer for this amazing Coconut Grove house to my clients. In fact I think it’s not renting because it’s too cheap and I know I can get my landlord more money for it.” ready for this… “So we’re going to INCREASE the rent to $3,750 in the morning”

My initial reaction………. …………………….. bit more of a pause….. ???? … ?

Now I’m normally pretty calm but I got blunt with this realtor and said (in my best condescending British accent) – “Honey, I’m not sure how long you’ve been practicing real estate for, but I’m pretty sure that textbook chapter 1 is If it doesn’t rent/sell it’s 99.99999% of the because it’s too expensive and you need to lower the price. NOT that it’s too cheap and you need to raise the price. And if you have so many offers and so much interest in the property, why has it been on the market for 62 days and why are you refusing against license law to put this offer to your client?”

Needless to say through the broken English, she was clearly flustered by being called out on, in my opinion, either stupidity or possibly using this clients house to get other clients, she slammed the phone down and that was pretty much the end of the conversation.

So this got me thinking – firstly how a large percentage of realtors don’t sometimes deserve a real estate license and clearly aren’t acting in the best interests of her client. At $2,400 per month on 62 days on market, the landlord has actually LOST $4,800 in rent. Waiting for another $2-300 over the course of the year makes around $2,400-$3,600 of additional income BAM still not covering the losses of a good standing offer.

Why? Because this person has probably said they can get $$$$ for it and got it wrong! It’s ok honey, say “I screwed up. I was wrong” – and just at least tell your client that he/she has an offer!

“Your failures won’t hurt you until you start blaming them on others.” Anonymous

So it got me thinking, with a current booming real estate market in Miami for Homes and Miami Beach for both condos and houses, it seems awfully strange to have properties sitting on the market for so long. Either they are priced incorrectly and the seller isn’t being realistic or you need to choose a different realtor! Either of them you should change because the realtor hasn’t done their job by educating you!

So here’s what I think are the worst of the worst and come on, there’s something wrong and you need to address it!!

Longest Properties on the market based on Actual Days on Market (ADOM)


They might be a good bargain because after 2066 days on the market, that’s like 14 years by the way, you’d think the seller is willing to negotiate and I can guarantee if they were priced back then there’s a steal now! They’ve probably just been forgotten like the tortoise in a match with the hare, but they’re still there and the tortoise might actually win and be a bargain for an investor!

Remember – Buying silk flowers at Home Depot isn’t going to solve your rental/sale problem. Finding a competent professional who knows the market and can ADVISE you on what to do is what you have to do otherwise your biggest asset is just going to sit there doing nothing apart from becoming a silk flower warehouse.

You’re SO CLOSE! Just cross the line of this marathon with the right person who can make sure you don’t have to start all over again!

Comments

By Erin Joynt,  Fri Apr 13 2012, 09:11
There does tend to be a stigma when you see that a property has been on the market for a large amount of time in comparison to other listings. I think that usually the listing is just overpriced from the start, and either the listing agent does not want to admit that they made a mistake or they aren't watching what their market is doing. After a while the listing becomes stale, and then people start to think that there is just something wrong with it. At that point, the listing will almost always go for less than what it could have gone for if it was priced right in the first place.

I worry about this licensed real estate professional who is refusing to present offers. It might be worth sending in a complaint to your real estate commission.
By Alistair Barrett-Powell,  Fri Apr 13 2012, 09:21
I agree Erin. I worry about it too. Poor landlord looks like he bought it for an investment and he's most certainly not getting his return on his investment quite yet!

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