Home Buying in 30076>Question Details

Patrick, Home Buyer in 30076

How do you get a seller to see that their property is not worth the same amount as it was in 2008?

Asked by Patrick, 30076 Sat Jun 25, 2011

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16
You can bring a horse to water.....
Web Reference: http://www.321property.com
2 votes Thank Flag Link Sat Jun 25, 2011
For many sellers, it will just take the time of their property being listed for sale with no offers.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Junper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Conventional | FHA | FHA 203K Renovation (Streamline & Consultant) | HomePath® |
HomePath® Renovation | VA | USDA | GA Dream
1 vote Thank Flag Link Sat Jun 25, 2011
It is painfully obvious with a comprehensive and thorough CMA. The data speaks for itself. You don't have to sell it when it is in black and white.
0 votes Thank Flag Link Wed May 30, 2012
If the data, appraisal and comps don't teach a seller then Jedi mind tricks seem to work the best.
0 votes Thank Flag Link Wed May 30, 2012
Hello Patrick,

If you have a good real estate pro on your side - it's their job to do this.
If you are buying directly from the seller - you'll be hurting their feelings no matter what you do.
This is why it's always better to work through/with a realtor.

However, you can try to use Zillow.com and other statistical data (on NAR website, f.e.)

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Sat May 5, 2012
Show them the market trends regionally and locally, then show them the comparable properties and ask them what conclusion they would draw.
0 votes Thank Flag Link Fri Mar 23, 2012
I suggest that you approach them carefully, ask lots of interesting questions, and reveal stats and charts that show current and recent sales comparables.

Sometimes, some folks need a macro lesson, so depending on their level of ignorance and or arrogance, you present what you present - national stats, netro stats, street level stats...

Over time, their amazing grasp of the obvious should take over.

In the meantime, I wrote an article about the vision for 2012 real estate that features links to about three hours worth of free video that details the state of the North American market...

The video was shot live last month with Gary Keller - if he can't convince these folks that it ain't 2008 anymore, no one can...
0 votes Thank Flag Link Sun Mar 18, 2012
Hi, it really comes down to the sller accepting the fact that the value has dropped. Maybe they are in a situation where they can sel lower because they will owe...Every seller is different so there is no set technique to getting a seller to accept your offer.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Mon Jun 27, 2011
Hi Patrick,

Move on because this battle is a complete waste of time, and possibly money. Any offers involving financing should be contingent on the property appraising for the contract price. Most lenders require an upfront, non-refundable fee for that appraisal to be paid by the borrower. If the value comes in lower than the contract price and the seller refuses to agree to a price adjustment, you'll have to decide whether to walk away or bring the difference plus any required down payment to settlement. If you walk, you'll do so leaving anywhere from $350 to $500 in appraisal fees invested in a property that you will not own.

An FHA appraisal also has serious implications for the property too. Any borrower that comes along over the next 90 days seeking to buy that property using an FHA mortgage, the most widely used mortgage product today, will be obligated to use the valuation from that FHA appraisal.

No one wins with these types of games. Again, just move on to one of the other properly priced properties.
0 votes Thank Flag Link Mon Jun 27, 2011
Certainly any client is aware that our economic slowdown effected almost every industry and most indfividuals. The slowdown (nice term) started with the banks giving bad loans to bad clients, along with bubble states like Fflorida, California, etc artificially escalating the value of homes because the demand was great. There are lots of studies of how much the housing market has gone down since the beginning of this debacle, and it does vary state to state, county to county, and even community to community. But I wouold imagine that an average of 30 to 35% is typical for the marketplace.

OUR area, and yours in the Roswell area has not been hurt as much, and we are seeing an increase in activity from both sellers and buyers alike. We have not seen prices starting to increase, but that should follow if the trend continues. When in doubt, comparables are the best way to get it across to the sellers. Let me know if I can help.
0 votes Thank Flag Link Sun Jun 26, 2011
Why do you want to do this, Patrick?
0 votes Thank Flag Link Sat Jun 25, 2011
A couple of possibilities: Check your local tax authority. Some property tax assessors are valuing property down in the declining market. Many assessors have their heads in the sand or the data they work with is inaccurate and don't push the valuations lower as they should.

Second is to offer a list of homes that sold in 2008 compared to a list of homes sold in 2011. You could also find statistics such as those offered by the National Association of Realtors that show prices throughout the country have declined, and if you can show a decline in your city, all the better. An agent can help you get this information.

Best of luck!
0 votes Thank Flag Link Sat Jun 25, 2011
These are good answers especially from Rick. Unfortunately there are agents who do not know what they are doing when it comes to suggesting a price for listing cleints, but worse, there are agents who will let the seller tell them what they want their home listed for - and go along know the price is not related to reality just to get a listing.

My job when representing a Buyer client, is to let them know about market realites, (and the market is stellar for buyers and investors and about as good as its going to get) and then when we submit an offer, if the price is from "dreamland" to include irrefutable data that supports our offer - data so strong that it compels the sellers agent to take it back and sell it to their seller.

That is where Rick is correct, you need a great (not just any) buyers agent - this takes experience you don't have and access to correct data sources you can't get.


Regards,

Robert Whitfield
Broker/Owner - Realtor
Professional Buyers Broker
Relocation Expert
New Home Construction Expert
ICC Code Certified Building Inspection Expert
Advantage Realtors
678-585-9691
877-787-7167
“Luxury Homes, Investments, Property Management & Rehab… Incomparable Client Representation & Due-Diligence”
0 votes Thank Flag Link Sat Jun 25, 2011
I would ask your real estate agent to include an addendum to the contract offer, stating that the offer price is based on recently closed sales of comparable homes in close proximity of their own property. Then include the addresses, sale prices, and closing dates for such properties. If the seller truly wants to sell, he will digest your information carefully, and may readjust his own valuation.
0 votes Thank Flag Link Sat Jun 25, 2011
Hi Patrick,

You, as a buyer, won't be able to. Their Realtor should have done a Comparative Market Analysis (CMA) for them before listing the property for sale. Their Realtor should have used Sold comps within a 1 mile radius of the property (the closer, the better) that had sold within the last 3 months. As a buyer, IF you put an offer on the property and are financing (not paying all cash), your lender will order an appraisal to be done and this will let the seller know what the appraised value of the home is (most likely not the 2008 value). At this point, you can negotiate with the seller or cancel contract (assuming, of course, that you have NOT removed your appraisal contingency in writing yet). Some sellers are in denial and won't budge on price, If that happens, move on and find a home that is realistically priced.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sat Jun 25, 2011
Ah, the 50,000 dollar question! This is why both buyers and sellers need to work with a professional Realtor. The seller needs an agent that will present to them the facts of the current market condition, including the most recent comparables of sold homes. The buyers agent needs to interact with the sellers agent to point out the realities of the situation. With that said, today's buyers need to be realistic about what they can get a property for...some feel people are giving things away and that is not the case. Finally, it ultimately comes down to wha the market will offfer and if the seller is truly a motivated seller. Please visit my website for more information about listings and I would love to talk to you if you are in the market for a home.

Rick Musto
Buckhead Home Realty
770-480-7699
rmusto@buckheadhomerealty.com
0 votes Thank Flag Link Sat Jun 25, 2011
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