Real estate General topic

[Sigarms]

Remember the buyer doesn't care about your personal history, if you paid high, low, or in the middle, etc.

My neighbor just tied herself into knots when she sold. She had a big round figure she liked that was more psychological than connected to any sort of reality or appraisal. So she fixated against that number, which was pleasing to her, instead of market value. She really really wanted that number (I think for future bragging rights) and it complicated things. But-- I recognize and understand we all face our own psychological factors when selling. All of us.

The good news is you are far ahead of the game from home ownership. Do your exercise about purchase price, plus inflation, and then value today. Once that is done, add it the savings that accumulated for so many years had you been paying rent elsewhere. Once you add the "saved" rent, it's a fantastic home run and grand slam.

Years ago I owned a very high end residential property that I lived in. Owned it about 15 years, then sold it for a price that had increased enough that it paid all of my costs to own it-- all the property tax, repairs, utilities, maintenance, upgrades, etc. So I lived in a very high end property for a long time pretty much absolutely free. And that was before considering what I would have paid to live somewhere else.

Such is the beauty of home ownership.

I've looked at comparables in our area and other counties and as of today (or course I understand the market can tank in time) I'm pretty comfortable on what I think we should be able to get vs what is out there.

Heck, for what we paid in 2005 for a large 3 story home with 37 acres, we'll be lucky if we can find something in the exact same price range today for a 1,500 single story ranch type with 3-5 acres IMO (I'm not certain if I should be laughing or crying).

I'm used to buying used cars as I've never bought knew. I know my rules that I've come up with over time not to deviate on what I look for in a used car. Still trying to figure out all the variables with selling a home, but like selling a car or anything else, I'm honestly not out to screw anyone due to the market when it comes time to sell our own home. That's why I am looking at tax values vs asking price with the rate of inflation thrown into the mix.

We honestly think we got a great deal on the house and land in 2005, and have no qualms doing the same when selling. That said, when you sell, you have to buy. Great to sell in a sellers market, but you also have to sell in the same market.

 

[paulsharvey]

So, would anyone read desperate seller; with a description of "Bring all offers", goats negotiatable, ect? I read the ad of Redfin and didnt see it mentiomes, but wife said Zillow or another (maybe sellers agents site?) mentioned a golf cart, and zero turn also negotiatable.

I did a very little bit of reacher on seller; and they did have a LLC xxxFarms LLC, based at this address. Place was built in 2018.

 

[paulsharvey]

Oh, so speaking to value; this home we are scheduled to tour, happens to have a wood burning fireplace. To some, that may ad value, for some completely neutral, and for others, it's higher insurance payments for something they will never use.

 

[plowhog]

So, would anyone read desperate seller; with a description of "Bring all offers",

I've been a licensed broker for many years and that's pretty much how I size it up ....

What you do know is the seller very much wants an offer. What you don't know is how much the seller is willing to negotiate on price and terms. Very often the agent who writes "bring all offers" doesn't have a clue about what the true bottom line is.

You can explore to find out what the bottom line is by putting in a low offer. But if it's below what the seller considers to be insulting, that will queer the deal. So you don't want to be too aggressive if it is a property you really want, and if it's not, why make an offer at all?

I once put in such a low offer, more than $20k below asking price. The seller responded by making a counteroffer $100 less than asking price. Whoops, I angered the seller-- no longer any hope for that deal ....

 

[Sigarms]

Oh, so speaking to value; this home we are scheduled to tour, happens to have a wood burning fireplace. To some, that may ad value, for some completely neutral, and for others, it's higher insurance payments for something they will never use.

I've got to ask, since I hear a lot of guys tell me that Florida is a straight AC with strip heat market and forget using a heat pump, exactly how often does a wood burning fireplace get used in Florida for heating? Or does the place have no central air?

 

[ultrarunner]

I understand why you would do this. It might be the best data available. But it is also fraught with risk, just like looking at Zillow or Redfin.

We upended the entire market, at least according to Zillow and Redfin, when we purchased the "other" 50% equity in our ranch property from a family member. Zillow and Redfin could not or did not discover the sale was only for 50% equity-- so it appeared a regular sale had happened but at a much lower price. That threw off their reported numbers for lots of properties in the area. There are many examples of other ways the numbers can be thrown off.

Regarding tax cost, I've only had experience in the CA and NV markets. I've never used tax cost as a way to determine value-- too many variables.

A lot of buyers look at what other similar properties are being marketed for. But that only gives you asking prices, not sold prices.

A professional appraiser has access to all the prior "sold" comparable properties and ways to adjust for differences. And an appraiser would pick up that our property was for half equity. So, for about $300, you can get the best data possible by ordering an appraisal.

I do understand that we all do the best we can when looking at many properties-- and usually only do an appraisal when narrowed down to purchase time.

Appraiser will also toss the high and the low sometimes or contact the sell agent for more details if the figure seems out of place.

 

[ultrarunner]

I've been a licensed broker for many years and that's pretty much how I size it up ....

What you do know is the seller very much wants an offer. What you don't know is how much the seller is willing to negotiate on price and terms. Very often the agent who writes "bring all offers" doesn't have a clue about what the true bottom line is.

You can explore to find out what the bottom line is by putting in a low offer. But if it's below what the seller considers to be insulting, that will queer the deal. So you don't want to be too aggressive if it is a property you really want, and if it's not, why make an offer at all?

I once put in such a low offer, more than $20k below asking price. The seller responded by making a counteroffer $100 less than asking price. Whoops, I angered the seller-- no longer any hope for that deal ....

I have bought offering full price but with seller financing...

30 due in 7 or 5 and once 3 years

 

[paulsharvey]

I've got to ask, since I hear a lot of guys tell me that Florida is a straight AC with strip heat market and forget using a heat pump, exactly how often does a wood burning fireplace get used in Florida for heating? Or does the place have no central air?

So, FLa is a big state, and we used to have AC w/ straight electric heat strips; that is the minority around here. Most central AC systems will be heat pump heat. Ad for conditioned days; honestly; 365 days per year will be conditioned. For good parts of April/May and Oct/Nov, you might run heat at night, and AC during the day; when we have 80+ highs, and lows in 50s/40s. As to wood fire place for heating; nobody, and I mean nobody that I know, use it for heating. Even if they have a wood burning fireplace, it might get light at Christmas or whatever, but it's mostly for mood, not heat. BTW, yes, we get cold in my part of the state; we get multiple nights in the mid twenties every year.

 

[paulsharvey]

I've been a licensed broker for many years and that's pretty much how I size it up ....

What you do know is the seller very much wants an offer. What you don't know is how much the seller is willing to negotiate on price and terms. Very often the agent who writes "bring all offers" doesn't have a clue about what the true bottom line is.

You can explore to find out what the bottom line is by putting in a low offer. But if it's below what the seller considers to be insulting, that will queer the deal. So you don't want to be too aggressive if it is a property you really want, and if it's not, why make an offer at all?

I once put in such a low offer, more than $20k below asking price. The seller responded by making a counteroffer $100 less than asking price. Whoops, I angered the seller-- no longer any hope for that deal ....

So, if I'm not misreading it; they might not know how to price the property, and maybe they had it listed for 30 days with no hits; and at this point, any offer (accepted or not), helps them to confirm their asking price?

 

[plowhog]

So, if I'm not misreading it; they might not know how to price the property, and maybe they had it listed for 30 days with no hits; and at this point, any offer (accepted or not), helps them to confirm their asking price?

In my opinion 30 days is way too short of a time window to be advertising "bring any offer." We are in a more difficult market due to interest rates, but even so ...

Whoever set the price made a decision, and it isn't always a good one. If a seller interviews multiple agents to possibly work with, the seller naturally asks each one what they would list the property for. Suppose two of them say $250k and the third says $300k "no problem!" Who do you think the seller is going to list with?

This is called "puffing," and it is very effective. Good agents don't do it-- but plenty of agents do. So the seller lists with the "puffer." Then the property is going to languish on the market and the "puffer" will eventually tell the seller they have to lower the price. (But they knew that from the start of course.) Such as price it back down to $250k. It's very slimy, but very common, and it really screws things up and the unprofessional "puffers" make a lot of money by elbowing the good agents aside. And a lot of sellers get tied up waiting for a big payday that never comes.

Sigh.