Well, do you want to buy a home or not?
You are aware that "Push back hard" also applies to the LISTING AGENT who WILL protect the sellers interest. So...let's stop whining and let's talk about a STRATEGY that can get you into a home in a high demand area. From what you have revealed you KNOW you must compete for such a home and understand "Pushing Back Hard" simply is a losing proposition.
What you failed to share is the SELLING price of homes in this high demand area. Is the selling price deeply discounted from the list price? Of course not. Reality may be the homes are selling ABOVE list price! Do you want to buy a home or not?
Do you know what home sellers value greatly when they evaluate an offer? It's not 'Push Back Hard' but something that is in their best interest. Are you willing to construct your purchase offer to make it more competitive? This may mean using the lender recommended by your agent or the sellers agent. There is a strategic value in anticipating the consequences of choosing the wrong lender. Failing to anticipate and remove the obstacle can create a bit RED FLAG for a home seller. You don't want to use a recomended lender? Do you want to buy a home or not?
What resources do you have to work with? Are you shopping above what you can afford to purchase? Denial of this fact often is expressed in "Are these sellers crazy, they'll never get that price!" and week after week homes do sell in that area, and in 2013, often above list price. Do you really want a house in this high demand community?
Many home buyers, like yourself, in reality have been delt a 16 at the blackjack table. You think you have a play,,,,but you do not. You need a new deal and start over. Do you really want a house?
Now is the time to discuss with your agent the other strategies available. However, don't expect your agent to share their best kept secrets IF you entertain the idea that your bad strategy is the fault of your agent. Your agent has 4 hidden markets for home sales that are made avalilable to those who have shown themselves to be loyal and true and have COMMITTED to the agent their assurance.
Earn the right to be on your agents 'A List' then your agent will not be reluctant to spend the money and resources to find you a home that you willl buy AT MARKET VALUE! Market value is what homes are selling for, NOT what you want to pay. Now, do you really want to buy a home?
If your intent is to by a home at 60% of Market Value, you should be advised that boat left the dock three years ago.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
You might be able to bring them down on the price during the Financing Contingency Period if it does not appraise. BUT if you really want the property , then you will have to come up with the difference...starting with Part of the difference. The bottom appears to be over, no crystal ball here, but historically, Real Estate goes up. The longer you wait, interest rates will go up also and you won't be able to purchase in that High Demand area.
Best of Luck,
Sally Wildasinn, Realtor
STAND YOUR GROUND! DO YOUR RESEARCH! I TOTALLY AGREE. MOST HOME IN INVENTORY ARE OVERPRICED AT LESS 15%. I BOUGHT HOMES IN AREA IN 09-10 PRICES & HAVE SINCE SOLD OFF. REMEMBER, THE HOUSING MARKET IS GOING TO CRASH AGAIN, IT'S NO WAY IN WELL THESE HOMES SELLING FOR $200K+ IN MOST AREAS HOME WILL BE WORTH THAT IN A YR! I FEEL SORRY FOR FOLKS BUYING IN THE HIGH DEMAND, SOON WILL BE UNDERWATER IN 6MTHS. JUST TO GIVE YOU AN EXAMPLE HOW BAD IT IS: LUX 4000SQFT HOME SOLD FOR $489K IN 2007 GOING AT AUCTION/REO FOR $175K .....THAT'S A RIDICULOUS AMT OF $$$ LOSS FOR LENDER & BUYER, BUT SOMEONE GETTING A DEAL. SO DON'T OVERPAY. MOST HOMES IN INVENTORY ARE $25K OVERPRICED. I RECENTLY HAD A BUDDY BY A PROPERTY AT $208K , COMPS WHERE $145K.....MAKE SURE YOU HAVE A SEASONED AGENT WHO KNOWS THE AREA OF INTEREST! GOOD LUCK..
As for the homes that you say have been listed for over a year, you do not know anything about the seller or their situation. In many cases, the seller could still be underwater. That means that they must get a certain price for their home, otherwise, they are not able to sell it. Many Sellers do not have the funds to bridge the gap between the amount of their mortgage and the current market value of their home.
With a home that is listed for sale, the Buyer is always free to offer any price they wish. At the same time, the Seller is free to reject any offer
Your Buyer's Agent will review all of the recent homes sold in the neighborhood. That will enable justification for your offer. It will be up to the Seller to make their decision.
Pushing back isn't an issue - the seller accepting the data and using common sense is the issue. ME is more or less correct - this is a dead cat bounce right now and it will settle again. The economy has not recovered -
Get an experienced, data centric agent and treat this as business. Be prepared to deal with sellers that are drinking significant amounts of Kool-Aid
I agree with a lot of what Bruce and others had to say. I know you have heard the terms Location, Location, Location - that as well as Supply and Demand will always rule the day in real estate.
Not sure which homes you have seen on market for a year but I will tell you in certain price ranges that is not uncommon, regardless of market. It does not matter what you, the seller or I think about prices relative to 2006 - the market is driven by current, recent, and relocating buyers and supply and demand among other things. Some areas are seeing sold prices at or above the market highs of 2006.
The key is this - DATA is king. If your Buyers Broker knows what they are doing they should be able to evaluate the overall and micro market a home is in and present a reasonable and fair offer (along with data to back that offer up) and if done well, often helps the listing agent sell your offer to their seller. That does not mean you will win the deal, but having that kind of market data will help you distinguish the best choice between paying near full price on your #1 home, versus choosing property # 2, 3, or 4.
I would be happy to talk with you.
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Corporate Relocations | New Construction | Luxury & Investment Properties
You CAN attack these properties, but realistically, I consider them "not for sale." They're listed, but since the price is unreasonable, we can't really buy them and so it's like they're not really for sale.
Go after properties listed in your price range, make a deal, and move in.
All the best,
As a hedge fund manager I make 30+ offers for every property purchased. I get deals, but I don't care that much about the home characteristics or the location. If there are homes that are currently right for you, todayâ€™s price will be a bargain 5, 10 15 years from now. Relative to 2000 prices Atlanta is still at a 30-40% discount from most metro areas, and for those coming here from there Atlanta IS cheap. More and more people are coming here from there, this will continue and this will push prices higher.
Ultimately price is less important than value. You might get a great deal on a home that has less utility and personal value than the right home and location for you. Is that a deal? Find the best home for you, make market offer and years from today when you sell you will be happy whether you make a profit or not. The idea in a tight market that you can buy at a substantial discount is almost fallacy.
Over the course of a week I can make 150 offers on homes in Buckhead at 80% of list, one or two of those owners will respond in a way that constitutes a discount from market. The likelihood is that it has a some physical issue which may or may not be easily fixed and that is the basis for the discount. In all likelihood it would not be your first choice of home.
A good agent will find several homes that works best for you and get you the best price today. It may take your second or third choice but in making offers you will find what the market is. You may not be willing to pay todayâ€™s price be the buyer who watches the train leave the station.
Atlanta currently, represents the best economic value in the country. People from outside the metro area recognize this, locals still think prices are too high. Shop Boston, Chicago, Washington, DC, San Francisco for a home with the same physical relationship to north west Atlanta inside the perimeter and youâ€™ll add 1, 2 or 3 million or more to the price. Buy today, Atlanta is projected to be the 3rd largest city in the US in 2076. Smart buyers are less concerned with where prices are than where they are headed. Where are prices headed?
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
CRS, CRB, ABR, MSRE, CDPE, CIAS, e-PRO, ESQ
2050 Roswell Road
Marietta GA 30062
The Linked In REALTOR
You need to work with an agent who will represent your best interests. Start out by having a frank discussion on what you expect and then be prepared to listen to the agent as to issues with the current market in your area and hopefully the agent gives you honest and direct discussion on how offers are made and what to expect. Your agent represents you and should submit the offers you want to make. The key to getting an accepted offer is presenting a fair offer and then negotiating to an acceptable offer that both you and the seller can live with. A good agent will educate you in advance prior to making offers as to what to expect and why. That agent will also provide you with recent comparable sold property information so you can see what other buyers are paying for similar properties. This is the best information to have to succeed with getting your offer accepted.
All the best,
Broker, Morris & Raper Real Estate Consultants
Here is the Deal... You need a great Realtor to negotiate the best price possible and to find out exactly what the motivation is for the seller to sell.... someone who not only understands the market, But can explain how he or she can view comps, etc.... You need a very experience Realtor.So... You need to do YOUR homework and get the best possible person.... Look at their profiles on Trulia... Can friends and Family... Can your lawyer, banker, etc.... Ask them who the best is.... But that person will explain the market, what you can expect and what prices are possible..... But again.... check them out and have them fight for you!
The best to you in your search
Sherry E. Bailey
Keller Williams Realty First Atlanta
I'm an appraiser as well as agent, this is routine for me as all I do is work off the data - something many sellers and agents care not to pay attention to. And in that zip.....well let's just say things can really get interesting. I've been working here full time since '93, that area is never boring.
If you want to chat, drop me an email.
If a home is over priced you should never pay for more than the home is worth. It is your buyers agents job to be able to present the comps and justify your offer price. As long as your offer coincides with the market there is no reason your agent should not fight for you.
Yes inventory is low now, but the number of potential buyers has shrunk as well. Feel free to contact me with any questions.
Tyler Willis, REALTORÂ®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
I don't kknow exactly what properties you have in mind that have been on the market for over a year, however a savvy, data-based approach always works, in any submarket.
Shop your agent.
It's always about win/win or no deal, so if some of the choices on your list seem unreasonable, and if your agent is stuck in some sort of retail mindset, then you are just going to continue losing in this seller's market...