Your comments mirror those of many buyers in 2nd home areas across the US. I have heard the same said about Napa Valley and Santa Barbara on the West Coast. And, Emily reports on this thread the same to be true for LBI.
I think this happens on 2nd home markets for a few reasons. 1) The sellers often have the economic means to sustain the property without difficulty. 2) As second home owners, the sellers are often more out of touch with the market conditions as sellers are when they are dealing w/ their primary home.
If your comps make sense, then stick with them, and include a complete comp package in support of your offer.
When presenting a buyer offer that is low, I provide this (in person if I can) to the seller an listing agent. I encourage the seller and listing agent to provide me any data that they think supports a higher offer. Generally, they don't. If they give me higher comps, I ask to sit down with them and review "their" comps. You have to present without insulitng in order for this to be effective. But, it can work really well.
Best of luck
Its a case by case basis, some Seller's or more mtoivated than others. However, you should know that they are 90 condominiums for sale in Cape May, 28 of them are Oceanfronting units between the $300,000 to $1,500,000. Many are withn the same buildings and or complexes. You don't need an Economics degree to figure out that there is a slighly over supply here. Again, if I recall its still a Buyer's market. If you need any assistance in your pursuit of buying a unit in town, please keep me in mind.
Hilarious. As if the residents of Cape May county do everything on a borrowed buck..
Hey "L.A." ... First off, everybody knows you're broke so just keep your contagion in your own backyard...
Secondly, an offer is just that an offer. Offer whatever you wish just don't expect anyone to accept it. Moving right along. Hilarious stuff.
It's now been almost 3 years since your initial offer. Just curious to see if you were able to settle on something or are still looking. As you can see while values have come down, they are still close to your initial 90% offer. In fact since January of 2008 only 5 units have sold in the Sandpiper building. Other than the 1 foreclosure the rest were still at fair market value. Also you can take a look at my third quarter 2010 market analysis on my website below. It shows all of the sales in the 15 months that will help you see where the market is. I wish you luck and hope you haven't given up on your Cape May Dream!
With the exception of Ocean/Beach Front I would agree with the other comments about values in Cape May. Ocean/Beach Front due to the limited supply on this type of inventory keeps the values stable. However, there are some deals in Cape May, not every property in Cape May that is listed has been updated to modern standards (interior) , Exterior is different due to the HPC guidelines. There are even some poorly maintained homes listed in town. You'll need to have vision, patience and money to bring some of these neglected home back to their orginally charm. Your offer does need to be in writing with strong terms to make it happen.
You also want to consider the time you are trying to buy a property. This time of year there are a lot of buyers rushing to get a property for the summer. If the property is a rental property and has income in it the seller will be less likely to come way down in price. There has actually been an INCREASE in the selling price in some of the rental areas for this reason. The fall may be a better time to get an extremely good deal.
Remember we can't build anymore shore properties so in the long run these properties will be worth more and turn out to be good investments.
Hope that helps
I believe I was on the other side of this transaction and the best advise I can give you is to put your offer in writing. In this market msot financially seucre sellers think that when a low offer comes in, the buyers are not fully serious. You would be amazed at the different attitude sellers take when something is physically sitting in front of them.
There is a great Podcast from SR950 in Philly by Jay Lamont. I believe he said on the Jan 6 show that the average sale is 31% below List price for condos in OC. I know that is not Cape May (and I love Cape May), but the fact is the shore is about to be hit really hard. I agree with John, we are going to be down for a long time, maybe until 2012 when the ARMs are done resetting. If you want to have an idea what will happen in the future, listen to financial experts or economists, not bloggers (me) or REs (almost everyone else here).
Stay Patient! It will save you a lot of money.
On Ginger's post, I indicated that I believe the impact of the real estate market dominos to the economy and the impact on the bigger picture has not yet matured. Just as the run up of appreciation caused a wealth effect the prompted people to refi and spend, we will now see retraction througout the ecomony.
It is inevitable, and the sooner our economists and politicians address this, the better. No, my post is not doom and gloom. The sooner we address the far reaching impact this will all have on the economy, the better. It's not just about real estate.
No, I don't agree that prices will plummet 50% either. There a lot of buyers who want to buy, and can qualify to buy, but don't because they are fearful. There is demand (pent up) and there are qualified buyers, and the interest rates make it affordable. Maybe my dog can no longer qualify for a mortgage (she never tried, but asusmed previously that she would qualify).....but there are plenty of legitimate financially solid buyers who can buy....but don't.
So, we have inventory, buyers, affordability, and the ability to buy..... The stop point is fear. So, the sooner the "big picture" unfolds and is addressed, the better.
I am actually quite optimistic. No, I am not expecting a return of double digit appreciation. But, I don't have an expectation of doom and gloom.
Buyers need to buy smart. Make offers, but be willing to walk away. As Marc said, there will be another house.
Because of this early softening, we opted to rescind our offer. If it's still on the market past the spring season, perhaps they will adjust their asking to the market. Then again, perhaps not! But there's plenty of inventory to choose from.
I think John is getting carried away. But keep in mind he is from California, where the market might seem bottomless. However, there is a point there hidden in the hyperbole. I would keep the offer on the table, but always keep it adjusted for the latest closed sale data which your Realtor will be providing. Meanwhile, keep shopping. There's ALWAYS another house. ALWAYS.
Make that offer and sit on that price. Sometime this year, probably sooner rather than later, that seller will beg you to pay the 25 percent reduced price and you will get a great laugh out of it and remember my message.
Housing will be dropping for a long, long, long, long, long, long, long time...
(I wouldn't buy anything now anyway...have you seen the timeline of Subprime/Alt-A/Option ARM resets? It's going to be ugly for a long time--years and years...Forget about Market comps...)
If you want any of those reset charts, I can find you the links on the New York Times website...
Offer is still standing, nothing more is happening. I'm glad to see your stat, it makes me feel a lot better about our offer. I agree with both you and Deborah - would love to see their comps, but my sense is they are using a price point that is not based on fact. Would be a lot of fun getting the bank appraisal to come in on price! Thank you again for your advice.
Any progress on the offer? or is it dead?
I have had to do what Deborah suggested more than once but it is usually met with a bruised ego. I dug up an interesting statistic today for Cape May. According to the Cape May County MLS the top 10 Real estate companies in the City of Cape May had a sale price to asking price ratio of 89.47% for 2007 .
I would think you are statistically within reason, you just have a tough seller. Keep at it.
As far as people adjusting their prices it is usuially dependant upon each individaul who is selling and if they feel they need to sell or not.
Marc is right, it is a dance sometimes that needs to be done right. The idea of price adjustment is rather hazy in some markets, Cape May being one of them. Cape May is a micro market with it's own trends that don't necessarily mirror the rest of the country or even the county. True business has slowed down a bit but a majority of Cape May sellers don' thave to sell. They didn't buy on speculation or use very unwise financing.
True though, if a seller needs to sell the buyers out there right now are more patient and definitely more in tune with the market than they have been. When great buys do arise , and they do, they don't sit around long on the block. My website traffic has increased tremendously in the last month partly due to the buzz of bargain property. My question to you Lita is how far apart were you from asking to offer price?