Home Selling in Marco Island>Question Details

Kgdowling, Home Seller in Marco Island, FL

have received offer 1 offer of $525,000 on on recently reduced price of $599,000. House on market for 6 month. Offer is firm. Should we take?

Asked by Kgdowling, Marco Island, FL Sat Jul 2, 2011

Help the community by answering this question:

Answers

15
Kg,

Hard to give you a complete answer without more knowledge about your specific property and the metrics of sales in the surrounding area. What I can tell you is the old cliche "your first offer is always your best offer" is true more often than not.

If this property is in Marco Island I am guessing it is a second home and that the property is encumbered by an association of some sort. You have to weigh your carrying costs including those association fees and property taxes and make a decision based on your particular situation. Without knowing the buyer or their agent it is difficult for me to know if "firm" is really FIRM or a negotiation tactic.

I am further assuming that you have the home listed with a Realtor® and must either not trust them or are looking for second opinions, You really need to have them carefully review with you the recent sales of similar homes; don't look out further than 90 days and see what the market dynamics are. Here in Palm Beach County inventories are at lear long lows and we are seeing some upward pricing pressure in some market segments (but not all) but your market on Marco is different.

Also explore your agents relationship with the buyer's agent and I hope the same party is not representing both parties. How well do they know that agent and their negotiation tactics?

So many questions, but based on what you have provided I hope this information is helpful. Don't turn down a deal for a few grand as in the end you may wish you had that offer back, Three years ago I had a good friend visiting from out of state and he had just put his house on the market. When he was here with us he received his first offer. Knowing more about his circumstances, the house, the market, the offer details and list price he asked me what I thought. I told him if it was me I would not counter I would accept the offer as is and get it sold and used the "your first offer is always your best offer" line.

Guess what, he didn't listen and thought it would be better to try and squeeze a few grand out of the deal. Now three years later the house sits unsold with a list price now 20% below the offer he had and another 3 years of carrying costs. Be careful and make sure you are receiving the proper guidance from someone who can show you the facts about the current Marco Island market and the very best of luck.

I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
1 vote Thank Flag Link Sat Jul 2, 2011
I would recommend that you and your Realtor re-evaluate the comps, and see where your home fits in the grand scheme of your area. Although 6 months seems to be a long time, in today's market, it's not such a long time. Do you need to sell? If so, consider the bottom line of your sale, will it meet your requirements? Are you in a position to wait and see what the trend is going to be, say, in another 6 months? These are all questions and concerns that you discuss with your accountant for the financial impact, and your Realtor for the market position of your home. There is no right/wrong, yes/no answer here, it all depends on what your needs and how it impact you and your plans. Good Luck.
0 votes Thank Flag Link Mon Jul 11, 2011
What is the tax assessment (approx) of the property for 2010. This might help me and the experts a better idea if this guy is trying to steal your home. If your assessment for 2010 (not homestead value, if homestead) is 700K for example, then he's trying to steal it and stay far from this deal. If he's offering you near homestead value, he's not trying to steal it but thinks things will be going up or just loves your home. This is a big factor not mentioned. Assessed value is important

The guy who lost his 4 mil buyer was a person buying a home and assessed value was his method of determining what he was going to pay. He offered a few % over assessed value and the seller nickeled and dimed him so he bought elsewhere from someone selling at or close to assessed value. Best of luck

John the Marco observer
0 votes Thank Flag Link Sat Jul 9, 2011
OK so it's obviously direct access but where it is is crucial. The article about the boomers and international buyers is somewhat true but we've been hearing about that for years. Maybe they will run down to Naples/Marco or maybe not so much. But for this seller, it depends on if he really needs to sell. as others say, he could wait quite a while for the next offer. Or he could be trying to steal the house. Maybe call his bluff. Why not try a counter. I find these kind of "firm" people tend to really want the property and won't run away immediately. He might be firm but you might still get the chance to sell to him in a month or so if he refuses the offer. I'm leaning toward countering right down the middle. I had 2 buyers like this and sold both anyway to a person like that. This isn't april 2008 when house prices were poised to be cut in half.

The other side of this coin is that in April 2008, a friend with a 4 million dollar home at the time got a 3.8 offer and tried to nickel and dime the guy for the 200K or 100K. He lost that buyer and needless to say, that home price now is cut right in half. Think about it. Also, is it a cash no contingency deal? this 4 mil guy was going to pay cash. The seller made a huge mistake not taking that as he had another few homes anyway. Now he's in some trouble with things like short sales and foreclosures as he had big mortgages. Take everything into consideration

***** I am not a broker, lawyer or expert but I am an observer. I've seen so much happen with real estate. These are different times. Never forget that. Banks are tougher than ever. Good luck and I see a lot of good advice from the trulia experts here. don't write any of it off but make your own decision based on these many factors mentioned. I wish I knew more about your home, where it is and such and I could maybe give you a better answer. A 599K home right now on Marco is more than a modest home. That must be a very nice house in a nice area. I know Marco like the back of my hand. Thanks for listening and good luck. I hope for the best for you. I've seen a lot more bad deals than good ones in the past 30 years on the sell and buy sides. Be careful and don't get pressured to do this if youre not comfortable with it

John
0 votes Thank Flag Link Sat Jul 9, 2011
Yes. Take it.

That's the bottom line.

How'd I end up there? Your house has been on the market for 6 months. I'm guessing this is the first offer. Or at least the first halfway serious offer. That suggests that the market price of your home is closer to $525,000 than $599,000. The market is the market. Wishing or hoping that your home really is worth more isn't going to change that.

Could you receive an offer tomorrow for a higher amount--say $565,000? Yes, it could happen. But it's not likely. And looking at the more likely scenario, if you turn this one down, you won't receive another offer any time soon. In a few months you'll drop the price again to, say, $569,000 and hope that stirs up some interest. And maybe it will. So, perhaps in 6 months you might actually be able to sell the property for, say, $550,000. Does the slightly higher sales price offset months of waiting and uncertainty? You've already been trying to sell it for 6 months. It's time to move on.

Since you posed the question, I'm assuming you financially could afford to accept $525,000. If you can't--if it'd cause complications like a short sale, damaged credit, inability to buy something else you want to--then maybe you could try holding on and waiting for a near-miracle. But if you can afford to sell and move in, it'd make sense to do so.

Is the offer firm? Maybe yes, maybe no. In a real slow real estate market, buyers tend to be telling the truth (or coming a lot closer to it) when they say that the price is firm. You could counter. But the upside would be what? Maybe $10,000-$15,000 more in the sale price. The downside: You lose this buyer and you're back to square one.

Only you--in consultation with your Realtor--ultimately can make the decision of whether to take the offer. So definitely talk with your Realtor. And I'm sure there are facts and issues you haven't put into your question here.

But, based on what you have presented, my response is: Take the offer.

Hope that helps.
0 votes Thank Flag Link Sat Jul 2, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Will holding on to it for a few more thousand dollars make a significant impact in your ability to survive?
Can you afford to not sell for several more months, to not sell at all, or to continue lowering the price?
Is the idea of not selling it (now or later) not causing you anxiety.
Then keep it.

Will accepting $525 allow you to move on with your life?
Will selling this home give you some freedom you have been waiting on?
Will you be happier once this home is in your past?
Then sell.

Tony Vega
Charles Rutenberg Realty
0 votes Thank Flag Link Sat Jul 2, 2011
I like Paula's questions.
What is your motivation for selling? Are you wanting/needing to get on with the next chapter of your life? Your second offer to purchase may come in December of 2011 for $499,000. Use exceptional negotation strategy to add value and get the deal closed. Then get on with your life. Pride is expensive.
0 votes Thank Flag Link Sat Jul 2, 2011
I would need to know if this is a short sale or if you just need to sell for other reasons. If a short sale, you need to discuss the possible outcome with your lender. If you accept this offer, you could be liable for the difference in sale price versus loan amount. Although offers are typically always negotiable, do not take this one lightly. In my experience, buyers these days (if you are lucky enough to find one) mean what they say. A relative of mine lost a sale recently in a situation just like yours. They countered a firm offer and the buyer walked away.
0 votes Thank Flag Link Sat Jul 2, 2011
Yes! The market is not going up anytime soon!

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Sat Jul 2, 2011
Everything is a negotiation. Every item in a contract is negotiation. If I were your agent. I would telll you to keep talking. Counter offer...and keep countering until you bring it together.

Debbie Albert, PA
Keller Williams Treasure Coast
0 votes Thank Flag Link Sat Jul 2, 2011
i agree with the others, listen to the advice of the realtor you hired! they have your best interest in mind, even if they are serving as a transaction broker or dual agent, they still have YOUR best interest in mind!!!! best of luck!

http://blog.house-guy.com/2011/05/follow-up-on-2009-real-est…

best of luck
0 votes Thank Flag Link Sat Jul 2, 2011
Acceptance of an offer is a personal decision. I recommend you review the comparable sales with your Realtor and follow your instincts. My view of a
Web Reference: http://Ken-Lowe.com
0 votes Thank Flag Link Sat Jul 2, 2011
Hi Kgdowling,

Have your Realtor do a current Comparative Market Analysis (CMA) using Sold comps within a 1 mile radius of your property (the closer, the better) that have sold in the last 3 months (up to 6 months). This will give you current market value and that is what you should base your decision on. If the current market value is lower than $599K, but higher than $525K, you might want to consider lowering your list price but not necessarily accepting the %525K price (if buyer won't go over the %525K on a counteroffer, then just lower the list price and leave Active on the market).

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sat Jul 2, 2011
My brain is saying; go thru the steps:
Where are the Comp's, particularly on a dolloar per square foot basis?
Is the $525 more than you owe on it; are you going to have cash left over to do what you want?
People say that it is FIRM, but.....

My gut tells me to take it, be happy and move on.

Good luck and God bless
0 votes Thank Flag Link Sat Jul 2, 2011
What is your agent advising, and have you reviewed comps, recently sold similar properties in the immediate area, if so, what does the data suggest....
0 votes Thank Flag Link Sat Jul 2, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer