Home Buying in 98006>Question Details

Shasta, Home Buyer in 98006

What would you offer for condo in NW Florida that is listed approx. 300k higher than 3 sold short sales are only sales past 12 mo in building? Thank

Asked by Shasta, 98006 Wed Feb 16, 2011

They are similar in square footage, Bed/Bath, and 2 of the short sales were more updated than the condo we are looking at. None short sales in the area are more in line with this asking price however these are the only 3 comps in the building in the past 12 months. We do not want to over pay but feel we need to be able to justify such a low offer. With the possibility that interest rates are going up towards year end, this may not be the bottom of the market and that is our concern. We hate to buy something a year later it is worth 30% less etc.
Thank you

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4
Hi Shasta...
The quickest and easiest way around your conundrum and avoiding agent double speak is to hire an appraisal company of your choosing to appraise the condo. Yes, it might cost 300 dollars, but isn't that worth it to see a fair evaluation of your considered condo investment? The appraiser will take into consideration all updates or lack thereof. They will also discuss the condo management company. I think it is worth it to you. $300 per sq ft in FL in this market seems super high...especially with only distressed sales.
10K to 300K overpayment risk is too much, spend 300 and see an independent assessment!
Best wishes,

Jim
0 votes Thank Flag Link Mon May 7, 2012
As to your replies regarding advice from an agent. I am not getting a clear answer. They do not have this listing but do most of the property management in the building which leads to sales for them. Therefore we thought they would be most knowledgeable. On one hand they are telling us they are surprised at offers being accepted and on another they recommend offering about 100k under list due to the need for substantial updating and not in reference to the fact that the only sales in previous 12 months were 3 shorts at 300k under the list price. We would like to buy it but we have a very foggy view of the worth.
I realize that shorts are one factor. How much weight would you put on it being 3 of them all in the same range and the only sales in that building? For example, the shorts are at $155 sq ft, where everything in that zip similar square footage, bed/bath, view that sold in past 12 months averages $330 sq/ft and in 09 was $260 sq ft.This list is at $309 sq/ft. So its all over the place, thus our confusion.
0 votes Thank Flag Link Wed Feb 16, 2011
Don't expect the FL agent to be of great assistance in helping you make a case to go in way under asking price. FL has presumed, (that means no disclosure required) transactional brokerage for the default position of agents in Florida. So the agent technically represents the transaction, not you and your interests in getting the upper hand!! You can request buyer agency and most agents will say no, but unless you ask, there is no buyer agency representation. I'm pretty sure Washington state is designated agency state, where it is presumed that an agent you call is working for your interests and signed disclosure is required if they represent the seller or you exclusively. Just because an agent is friendly and nice in FL doesn't mean they place your interests ahead of their own, or provide advocacy in the negotiation, like we do in presumed designated agency.
0 votes Thank Flag Link Wed Feb 16, 2011
This is a typical case where a local agent is required to help you sort out the facts. Google three ask them all the same questions and move forward with the one who you trust the most. A good question is , who are you working with to this point? The seller, a listing agent? If you have an agent what are they telling you?
0 votes Thank Flag Link Wed Feb 16, 2011
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