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...
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. Iâ€™m going to point out the specific property in question: 3191 Ohio Street, Coconut Grove, FL 33133
and Iâ€™m sure this happens all over the country but this is just ridiculous!
This property is really beautiful and itâ€™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
doesnâ€™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 thereâ€™s something wrong with the house â€“ 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 â€“ and this was the response:
â€œOh 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 Iâ€™m (ready for this) not even going to tell my landlord I got such an insulting offer and Iâ€™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 itâ€™s not renting because itâ€™s too cheap and I know I can get my landlord more money for it.â€ ready for thisâ€¦ â€œSo weâ€™re going to INCREASE the rent to $3,750 in the morningâ€
My initial reactionâ€¦â€¦â€¦. â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.. bit more of a pauseâ€¦.. ???? â€¦ ?
Now Iâ€™m normally pretty calm but I got blunt with this realtor and said (in my best condescending British accent) â€“ â€œHoney, Iâ€™m not sure how long youâ€™ve been practicing real estate for, but Iâ€™m pretty sure that textbook chapter 1 is If it doesnâ€™t rent/sell itâ€™s 99.99999% of the because itâ€™s too expensive and you need to lower the price. NOT that itâ€™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?â€
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 â€“ firstly how a large percentage of realtors donâ€™t sometimes deserve a real estate license and clearly arenâ€™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! Itâ€™s ok honey, say â€œI screwed up. I was wrongâ€ â€“ and just at least tell your client that he/she has an offer!
â€œYour failures wonâ€™t hurt you until you start blaming them on others.â€ 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 isnâ€™t being realistic or you need to choose a different realtor! Either of them you should change because the realtor hasnâ€™t done their job by educating you!
So hereâ€™s what I think are the worst of the worst and come on, thereâ€™s something wrong and you need to address it!!
Longest Properties on the market based on Actual Days on Market (ADOM)
- Townhouse â€“ 7668 NW 116th Avenue, Doral, FL 33178 â€“ $295,000 â€“ 4,066 ADOM
- Condo â€“ 5555 Collins Avenue #16A, Miami Beach, FL 33140 â€“ $350,000 â€“ 4,026 ADOM
- Single Family Home â€“ 152 Ocean Blvd, Golden Beach, FL 33160 â€“ $2,900,000 â€“ 4,904 ADOM
- Rental - 687 Ocean Blvd, Golden Beach, FL 33160 â€“ $35,000/mo â€“ 6,228 ADOM
They might be a good bargain because after 2066 days on the market, thatâ€™s like 14 years by the way, youâ€™d think the seller is willing to negotiate and I can guarantee if they were priced back then thereâ€™s a steal now! Theyâ€™ve probably just been forgotten like the tortoise in a match with the hare, but theyâ€™re still there and the tortoise might actually win and be a bargain for an investor!