i am sooo frustrated trying to buy a house in this area at a reasonable price - NOT at a bargain basement deal! I just offered a going in price of

Asked by Bobbie Blowers, Oriental, NC Thu Feb 25, 2010

$86/square foor, $6 ABOVE the average and the owner blew me off, according to the realtor. Asking was an outrageous $130/sq ft with no fireplace, no pool, on a dirt road, 11 years old. Poeple say this is a "buyers market" but afer looking at nearly 90 properties in 5 different states and making 9 solid, reasonable, market nujmber based offers without successful conclusion, I say, "NO WAY is this a bvuyers market!" My deals fell through for a variety of reasons - house inspections that revealed serious deficiencies, price, etc. I am not bottom feeding either. These are properties in the $200 - 300K range. What gives? How do I EVER find a reasonable house?

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John Bennett, Agent, Orlando, FL
Thu Feb 25, 2010
BEST ANSWER
Keith, Right on and thumbs up.

Bobbie, is your Realtor sending in Comps with the offer?

In this market, I attach comp sales of like homes in the area showing how we came up with the offer.

In Deland $86 should get the job done. I work the area for Banks doing BPO so I a good handle on prices.

And Keith, many times we know we have over priced listings, I miss about 50% of my listings because will not "blow in the sellers ear, and whisper sweet NOTHINGS and lie about the HUGE price they are going to get for their home."

Bobbie, just ask your Realtor to only show you listings that are buy able.

John
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Feb 25, 2010
Bobbie,
Slow down.
I think your problem is your expectations.
According to the link below, 595 homes "recently sold". Why were one of these not yours?

I suggest that you start over, sit down with your Realtor, and determine if what you want exists.

A few tips:

in any given market 70-80% of the inventory is over-priced. Realtors may hate me for saying it , but it's true. If the properties were priced correctly, they'd be sold.

There is always the "market within the market". Well-priced homes selling within a few weeks, while the rest of the inventory languishes on the shelf. You need to be able to discern the difference between a properly priced home and an over-priced home.

If you don't want competition, go after homes with long market times, and try to convince the owner to sell. But only if they need to sell will they sell.

Good luck.
1 vote
Don Tepper, Agent, Burke, VA
Thu Feb 25, 2010
A lot of good information below, and I won't repeat it. But a few other things to consider or keep in mind:

I really, really do not like the use of price per square foot as a measure of value. It's a misuse of the data. It's fine if you're building a house. It's fine if you're remodeling a room or rooms. But there's so much that a price per square foot doesn't capture. It doesn't reflect condition of the property. It doesn't reflect age. It doesn't reflect where the home is located (such as on your dirt road). It doesn't reflect the home's layout. It doesn't reflect lot size. It doesn't reflect the presence or absence of a pool, to use your example. Instead, use comps. Comps will reflect all that: condition, age, location, lot size, and so on. Sure, you'll still run into some overpriced properties, but then you'll know that they're overpriced because you're using a good benchmark.

Next thing that occurred to me: You'll probably have better success if you narrow your search. You say you've looked at 90 properties in 5 different states. The market can vary county by county, and even by smaller increments (community by community). Try to figure out, within a radius of a couple of miles, where you'd like to buy a place. Then focus all your attention on it.

Next thing: Some sellers are unrealistic. They have inflated ideas of what their property is worth. It really doesn't help much to try to convince them otherwise. Just pass on that property and keep looking. Maybe, if the property is still on the market a couple of months later, the owner has a more realistic understanding of values. Or maybe not.

Next thing: I'm repeating what's below, but in some geographic areas, in some price ranges, the market is very hot. A good Realtor--coupled with your focusing on a particular area--will help you determine whether a market is hot and develop strategies for dealing with that.

So, in summary: Focus on a specific geographic area. Get a good Realtor--one who knows the area and the market conditions there. Be persistent.

Hope that helps.
0 votes
Brian McMurr…, Agent, Tawas City, MI
Thu Feb 25, 2010
Keep working the process. Depending on your criteria it may just take longer to find a deal that will work. Most areas still seem to be a Buyers Market although there are exceptions. This doesn't mean that all Sellers are as motivated to Sell as the local market would suggest. Good luck on your search & acquisition.
0 votes
Bill Eckler, Agent, Venice, FL
Thu Feb 25, 2010
The term "buyer's market" is indeed specific to certain areas....even locations within a community. You are correct with your assumption that there ARE locations in Florida that are NOT a buyer's type market.

We had a discussion about this very topic at our most recent RE manager's meeting and the concensus was that our general location may not be in a buyer's market eventhough the news media feels we are. Inventory has decreased, prices have stabilized and and even increased in some areas, and property is selling.

These events are causing people like you to say...where are the deals we have been hearing about? This is generally the case when Re trends have turned the corner and are on the way back.....only time will tell.


One thing we would recommend is to get out of the short sale and foreclosure markets....you will likely stand a better chance of finding a deal and a home that meets your search criteria.

Good luck,

Bill
0 votes
Brad Micheals, , Deland, FL
Thu Feb 25, 2010
If you are looking in the Deland area, their are numerous properties that are selling for between $80-$100 a sq.ft, especially in the price range you are suggesting. I would suggest you use a realtor that specializes in that town or city you are searching. That realtor should only be sending you properties in your criteria. If you sat down with the realtor, and did a buyer ready list, that realtor should be able to narrow down choices for you that would suit what you are looking for. I work extensively in Deland, if that is the area of interest. Please give me a call and lets talk.
Sincerely,

Brad Micheals
Adams,Cameron.& Co. Realtors
422 S. Woodland Blvd
Deland, Fl. 32720
386-624-2040
0 votes
Shannon Niev…, , Clermont, FL
Thu Feb 25, 2010
Are you looking for a home in the Deland area? Or what area are you interested in? Please advise and I will see if I can find anything that sparks an interest with you. Have a great day!

Shannon Nieves
Home Wise Realty Group
435 Douglas Ave., STE 1005
Altamonte Springs, FL 32714
321-239-2558 Cell

Email: florida_realtor_1@yahoo.com

Web Site: http://www.thebestflrealtor.com
0 votes
Joseph Domino, Agent, Scottsdale, AZ
Thu Feb 25, 2010
First of all, who said it was a Buyers market? It the lower end of property values for your market there is considerable competition for those "bargain" homes.

Secondly, your agent should be providing you with comps for the area. It is hard to imagine a home with an average of $80 sq ft value selling for $130 sqft. It will never appraise. DO NOT look at listing price, it means nothing. Selling prices are all that counts. A seller can ask for any amount, but they cannot sell it for any amount.
0 votes
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