Carol Cornwe…, Home Buyer in Cedar Key, FL

As a buyer, am I being unreasonable to offer a price just above the appraisal when the sellers are asking 30% over the appraised value?

Asked by Carol Cornwell Strickland, Cedar Key, FL Thu May 31, 2012

We fell in love with a small cottage in Cedar Key that was being offered for $195K. The house is small, in need of repair, including asbestos shingles, and has no central air. It is appraised at around $133... it has been on the market for over 2 years without any potential buyers. We offered $125, which was met with "no" and no counter offer. So, we then offered $150. The sellers countered at $175. We then offered $160 (which is in our opinion WAY too much) and the sellers rejected the offer. We are figuring that perhaps they really are not interested in selling the cottage. There are many different sales prices in Cedar Key, but I'd say the average "comp" for a cottage of this type is around $125K as one very similar to it just sold last week for $125K and it is in great shape with central air, etc... We are seriously disappointed and sad that we cannot get the cottage, but we are not willing to go any higher. Can anyone give an opinion or advice about this situation?

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A ''Nickie''…, Agent, Cedar Key, FL
Wed Jul 18, 2012
Hello! As a Buyer, You may offer what you would like to offer, Agents are the messegeners on your behave. But Agents do have good as advise most of the time! You never know the Seller's situation on putting in low offer. One house sold in Cedar Key recently that was priced at around $470K and the sellers took an offer of $350K. You Never Know!! Comps are hard in sometimes in Cedar Key because we are surely not any type of subdivision. ONE THING that many of the Sellers in Cedar Key do not understand, that IF the Buyers are getting fincaning, Mortgage Lenders will not leand more than the house is worth!
0 votes
Jennie Pinto, Agent, Cedar Key, FL
Fri Jul 13, 2012
No, you are not being unreasonable, but be aware that Cedar Key is a different market. Many if not most of our homes are second homes, old family homes, or investment properties. The sellers do NOT have to sell. It is discretionary money, their jobs or livelihood do not depend on this location. If it sells, great, they have freed up some assets, if not, well, the market will catch back up.

Agents in Cedar Key are used to working with long term goals, both on the buying and selling sides. I tell a true story that I sold a house that had been on the market for 10 years, and the seller finally realized her asking price. Did it pay her in unrealized gains and interest? Probably not, but she was happy.
0 votes
As a buyer, why would I want to buy a home knowing I will be stuck there for years if I try to sell and get my money back?
Flag Fri Sep 12, 2014
Hm, well, I think it is foolish to overprice a house and let it sit on a market for years and let the house rot down to the ground. A lot more maintenance and worry along the way. Say the house sits for 10 years. In that time you may have to spend money on a new roof, new air conditioning, new floors, new paint job, kitchen renovation, landscaping, etc. etc. or you will let the house deteriorate which is bad for the house and bad for the community and bad for you brokers. Keeps you from selling other homes which are stuck next to poor condition ones which have sat abandoned. And there are some doozies there. Cedar Key, wow, talk about a GHOST TOWN!
Flag Sun Aug 10, 2014
A ''Nickie''…, Agent, Cedar Key, FL
Mon Jun 18, 2012
Cedar Key is a different place for real estate. I know because I am from there, work a little there but I work mostly out of Central Florida. Cedar Key Sellers seem to be stuck on a price and there they sit. . . . and sit. They seem to be unaware of that real estate in Florida is bad and selling 2nd homes stink.
Just recently Cedar Key has started to pick up on the selling side. Everyone that I speak to in Cedar Key says that "Thing are really starting to sale here". However, buyers are bottom buying and the homes that need the most work or foreclosures are selling. Only a few good condition homes are selling.
Clark Howard said that if you ever wanted to purchase a 2nd home, now is it.
In the Central Florida, if a house is over price to sale, you don't list it, Not in Cedar Key! MANY homes are over priced for the current market!!
It's like Cool Hand Luke, they have to get their mind right!!! Call me if you want any help!! Nickie
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Annette Law…, Agent, Palm Harbor, FL
Fri Jun 1, 2012
Without EVER seeing a piece of real estate it can, with certainty, be predicted a low appraisal based soley on the number of sales taking place in the community. Few sales GUARANTEE a low appraisal. How low depends of the rules and conditions the financing bank places on the appraiser....and be very aware, the bank is protecting themselves.....period.

Clearly you are a person of great reason and sound mind. Why would you offer 'way too much' ?($160,00) Indeed YOU could see the VALUE.

The truth is you can get the cottage, but you are unwilling to pay what the OWNER is wiling to accept. I got exactly the same feeling with I pulled into the HESS station and they too wouldn't let me full up for what I was willing to pay. So, I paid more.

Should the sellers situation change, you may find new opportunity in regards to this cottage. Make the owner aware you are still interested should such a change occur. Meanwhile, either a new cottage will surface or the winds of providence will create a new opportunity. Things tend to work out as they should for those who heed good counsel.

Best of success in finding your new home.
0 votes
Thanks so much for your advice, Annette!! Carol
Flag Sun Jun 10, 2012
Carlos Vazqu…, Home Buyer,
Thu May 31, 2012
Everything is under seller side , sometimes they are waiting that the prices increasing and the market says the last word.

Carlos J Vazquez Tent
Coldwell Banker Weston
0 votes
Jacques Ambr…, Agent, Forest Hills, NY
Thu May 31, 2012
Be aware that appraisals are not always accurate to market value. Appraisers have a set of criteria that they must go by and cannot take into accout certain aspects of the market. If you have been looking then use your own judgement. Based on what you are saying it seems your offer is reasonable, but as the previous person said, the owner has the right to be unreasonable. Obviously they are not in any rush to sell, or are not pressed for time. There is a reason the house has been on so long.
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Ines Hegedus…, Agent, Miami, FL
Thu May 31, 2012
Unfortunately, the seller has every right to be unreasonable and this can be frustrating. If you are dealing with an unrealistic seller, it may be time for you to look for another property. If there are no more properties similar to what you are looking for, then that seller will sit and bank on that opportunity. Ultimately, you will pay what you think is fair and reasonable to you.

Look at what's happening in Miami right now:

Offer what you think is right and be willing to walk away.
Good Luck!
0 votes
Thanks so much for your input!! I was shocked by the article on Miami bidding wars---guess we should be fortunate that that is not the case in Cedar Key!! Thanks for your opinion and advice...Carol
Flag Thu May 31, 2012
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