questionable motivation of sellers

[Smiling JOe]

I just saw a price change for a listed property, which had notes, "VERY MOTIVATED SELLER!! BRING ALL REASONABLE OFFERS!!... Priced to sell!" I bet you wouldn't think the seller was so motivated if you saw the price change. It increased from $497,500 to $685,000. :shock: That is a 37% increase in price. Motivated seller??? Makes me wonder what that means anymore. Does that mean that if can negotiate the price down to $497,500 and feel like you got a huge discount?

Personally, I think the house is a great buy at $500K, but even great buys are not selling like hotcakes right now.
Perhaps there is more to the story, like the property recently receiving a zoning change allowing greater density or something, which might change the value, but on the surface, it just doesn't make sense. If it didn't sell during the last 5 months, priced under $500K, I'm not sure that it will sell now for $685K. A few sellers are realistic in their pricing, but I still question so many of the people who have property listed.

[Bob]

SJ, it's like they're trolling with no bait on the hook expecting a crazed fish to latch on....so to speak.

[Smiling JOe]

SJ, it's like they're trolling with no bait on the hook expecting a crazed fish to latch on....so to speak.I would take your analogy one step further and say in addition, they are waving a sign, which reads in fish-speak, "there is a big fat juicy worm for you to eat, right here on this thing that looks like a hook, which is following our boat."

You see, I don't have a problem with sellers trying to find price points. Okay, so they tried 498K, and didn't have any luck. Some people looking for homes in that price range might make $500K the bottom price on their search. If it didn't work at 498K, bump it to $515K, and see if it gets more hits.

One other thing that I find as extreme is raising the price 37% and keeping the notes, "Priced to sell, very motivated." It isn't that the language is a lie, and as I mentioned, maybe the value increased due to something else which they don't note. However, I do think it is rather extreme marketing, and once a buyer finds out about the price jump when researching the history, he or she will look at everything the seller, and the sellers' agent, says with a big bold ?

[2bfabian]

Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?

[SHELLY]

Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?

2b,

Keeping with the "Hawaiian Theme" of your post, I offer up the following April 2007 excerpt from the Big Island as told by the Real Estate Kahuna in the land of Aloha:


"There's a lot of inventory around. Buyers are looking around instead of jumping at the first thing they see," said Hawaii Island Board of Realtors President Mary Begier.

The dropping numbers appeared everywhere on the island.

Ka'u saw the largest decline in the number of home sales so far this year, from 42 sales to 25, a 40 percent decline. South Hilo declined 36 percent, from 74 sales to 47.

Begier cautioned that the North Kohala market -- with nine sales in the first quarter of 2007 -- is small enough that a few high-dollar sales would create a spike in the median price statistic.

Overall, it's a buyer's market, and sellers should wake up to that fact, Begier said.

"I'm telling sellers if they want to move their property, they have to offer value," Begier said. "People who have been listed for over a year didn't take my advice, and now they're chasing the market down. Sellers who still think it's a seller's market are only going to hurt themselves."

Maka'ala ke kanaka kahea manu.

.

[full time]

"Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?"

What other professions do you practice without a license? By the way, if you have a law license, some Florida CLE might be in order to get you up to speed. I have my doubts that a 1990 Hawaiian appellate court decision is going to carry much weight on Florida real estate matters and the issue of a realtor's obligation to the seller is hardly an issue new to a Florida judge. But if so, I hereby recommend to the the lawyers that they tell the court to cf SoWal.com and 2bfabian for authority.

[2bfabian]

Thank you for you polite comments Shelly. Yes, we are definitely in a market that has not been seen since I was stationing at Ft. Carson in the early 80's.

I can remember people ready to just give there property away because no one was buying.

My fear is people will panic and send this market into a tail spin that will take a decade to recover from.

Please understand that I do see your argument, and loved the Hawaiian song.

[Mango]

Maybe they struck oil SJ, hence the price increase. :lol:

Here in N.Y. my property has a deed restriction that if I hit oil it belongs to the Phillipse family. :roll:

[2bfabian]

"Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?"

What other professions do you practice without a license? By the way, if you have a law license, some Florida CLE might be in order to get you up to speed. I have my doubts that a 1990 Hawaiian appellate court decision is going to carry much weight on Florida real estate matters and the issue of a realtor's obligation to the seller is hardly an issue new to a Florida judge. But if so, I hereby recommend to the the lawyers that they tell the court to cf SoWal.com and 2bfabian for authority.

Dear sir,

If you would be so kind as to allow me to know, what makes you think that I was intending to practice law without a license?

Please be so kind as to let me know what gave you the impression I was not up to speed.

Your last sentence seems to not make much sense,but I still apreciate you comments,and hope you have a nice day.

[Smiling JOe]

Maybe they struck oil SJ, hence the price increase. :lol:

Here in N.Y. my property has a deed restriction that if I hit oil it belongs to the Phillipse family. :roll::roll: Well, this house is located in Freeport, and depending on the location, an oil companhy may own the mineral rights of the property -- not uncommon in Freeport. ;-)

[Busta Hustle]

perhaps this thread could also be titled questionable motivation of the realtor involved unless you are sure the seller wrote this description. If the realtor did maybe he or she sees the value they add to the deal is by chumming the waters so to speak with these oversized catch phrases and then waiting for another school of mullet to swim by and take the bait. In either case it is the sign of the times and is just 1 sign of the slow market.
It also kind of appears that most of the realtors around feel that sellers decide the prices (which are to high) for now and realtors take the listings any way (which is their lifeblood) then lower them with permission after months or years of no hungry mullet. In the meantime there are always enough rich mullets around to keep a few million dollar plus sales happening. So sellers continue to hold on to the dream of big profits laying awake at night thinking about the how the new airport will make them wealthy, their children smarter and their spouses better looking.

[InletBchDweller]

perhaps this thread could also be titled questionable motivation of the realtor involved unless you are sure the seller wrote this description. If the realtor did maybe he or she sees the value they add to the deal is by chumming the waters so to speak with these oversized catch phrases and then waiting for another school of mullet to swim by and take the bait. In either case it is the sign of the times and is just 1 sign of the slow market.
It also kind of appears that most of the realtors around feel that sellers decide the prices (which are to high) for now and realtors take the listings any way (which is their lifeblood) then lower them with permission after months or years of no hungry mullet. In the meantime there are always enough rich mullets around to keep a few million dollar plus sales happening. So sellers continue to hold on to the dream of big profits laying awake at night thinking about the how the new airport will make them wealthy, their children smarter and their spouses better looking.
I have to say I laughed on this one. Yes, some Realtors let sellers decide the prices. I however, have turned down at least a dozen listings this year b/c the seller wanted to price it too high. They are still "waiting on the mullet".;-) I would hope that the Realtor in this case forgot to take the wording out of the listing information. If not, he/she is not doing justice to their client. I know that there are some bad apples out there that I work with--- I for one, do not feel that I am one of them.

[Smiling JOe]

I just checked the listing again, and the motivated wording is still there.

[2bfabian]

It is sad, that I can infer from your post that you are talking crap about this Realtor. I find it unfair and would say if you have a problem with him or her maybe it should be you calling him or her and telling them and not doing what you are doing.

This is not fair to them and I wish to think that maybe they know more about their listing than you do.:shock:

[JoshMclean]

It is sad, that I can infer from your post that you are talking crap about this Realtor. I find it unfair and would say if you have a problem with him or her maybe it should be you calling him or her and telling them and not doing what you are doing.

This is not fair to them and I wish to think that maybe they know more about their listing than you do.:shock:

This honestly looks like a 3rd grader has written this. :roll:

[TripleB]

This honestly looks like a 3rd grader has written this. :roll:
I see no reason to disparage 3rd graders!

[rapunzel]

Honestly, 2b, I think SJ is just remarking on a phenomenon anyone looking at real estate lately has noticed....that prices are fluid to the point making it too scary to buy. I've seen a price jump 20% between the time I told the seller's agent I was interested in a house and when I contacted an agent 2 days later. It's ridiculously time consuming to try to figure out which sellers want to sell and which ones are just fishing. There is no rhyme or reason to prices right now, and that keeps the market slow.

There is a great site called zillow.com, and they have two categories of listings: for sale (the seller is actively trying to sell the home) or make me move (the seller throws out a number which would make it worth their while to sell). They also have a column with asking price and one with what the site estimates the fair market value based on comps next to it. It would be seriously convenient if the local MLS would separate the selling from the fishing listings.

[2bfabian]

This honestly looks like a 3rd grader has written this. :roll:

Thank you Josh,

I am sorry my computer has a virus and sometimes takes my cursor and jumps back and starts typing on other lines. I will try to proof my writing a little better.

[2bfabian]

It is sad, that I can infer from your post that you are talking crap about this Realtor. I find it unfair and would say if you have a problem with him or her maybe it should be you calling him or her and telling them and not doing what you are doing.

This is not fair to them and I wish to think that maybe they know more about their listing than you do.:shock:

It's sad that one can infer from your post SJ that you are talking crap about the Realtor trying to sell property for his client.

I find this very unfair,and would suggest that you speak to him or her if you have a problem with the way he chooses to do business.

It is my belief that he knows more about his own listing than you do.

[2bfabian]

Honestly, 2b, I think SJ is just remarking on a phenomenon anyone looking at real estate lately has noticed....that prices are fluid to the point making it too scary to buy. I've seen a price jump 20% between the time I told the seller's agent I was interested in a house and when I contacted an agent 2 days later. It's ridiculously time consuming to try to figure out which sellers want to sell and which ones are just fishing. There is no rhyme or reason to prices right now, and that keeps the market slow.

There is a great site called zillow.com, and they have two categories of listings: for sale (the seller is actively trying to sell the home) or make me move (the seller throws out a number which would make it worth their while to sell). They also have a column with asking price and one with what the site estimates the fair market value based on comps next to it. It would be seriously convenient if the local MLS would separate the selling from the fishing listings.

Dear Sir,

You are so right about your comment. The thing that I am trying to stop happening is starting to happen in my area. There is a townhouse on grand lagoon which is in foreclosure and the bank is asking $120,000 for it.

The problem with this is because of Realtors wanting to low ball everything the offers on the property as of now from what I know is $80,000. This hurts everyone who has bought property on the lagoon in the last few years. My fear is we are just starting to see the beginning of a market which is not realistic.

[rapunzel]

Dear Sir,

You are so right about your comment. The thing that I am trying to stop happening is starting to happen in my area. There is a townhouse on grand lagoon which is in foreclosure and the bank is asking $120,000 for it.

The problem with this is because of Realtors wanting to low ball everything the offers on the property as of now from what I know is $80,000. This hurts everyone who has bought property on the lagoon in the last few years. My fear is we are just starting to see the beginning of a market which is not realistic.

My fear, sir, is that we'll never see the end of a market that has not been realistic for some time now. If all the buyers are scared off by the volatility, then it only depresses values further, longer.

If you broke your leg, would your prefer the doctor reset it quickly in one blinding jolt of pain, or gradually realign it with a week of slightly less painful traction? It's sort of the same thing.

[2bfabian]

You definitely have a very valid point. Like many others, I believe many things are effecting this market. I have just tried to in some way bring the discussion to the table.

There are many valid points that are being made on this subject and I believe through dialog we will come to some sort of consensus of how to walk our way out of this depressed market.

Thank you for you courteous remarks.

[scooterbug44]

There are tons of things currently affecting the real estate market. New insurance requirements and prices, stricter lenders, a much needed reality check on skyrocketing prices, people who got greedy flipping and got left w/o a chair when the music stopped, people who think they own a gold mine instead of swampland, St. Joe dumping properties etc.

I'm hoping that buyer's are just being cautious and are waiting to see what happens with this year's hurricane season and mortgage issues.

Regardless of the market, there are always less than honest sellers and agents. Human nature.

[flyguy]

There are tons of things currently affecting the real estate market. New insurance requirements and prices, stricter lenders, a much needed reality check on skyrocketing prices, people who got greedy flipping and got left w/o a chair when the music stopped, people who think they own a gold mine instead of swampland, St. Joe dumping properties etc.

I'm hoping that buyer's are just being cautious and are waiting to see what happens with this year's hurricane season and mortgage issues.


I fit your description. I am a 47 year old boomer who wants to buy a beach condo for a second home. I can afford it now but see no reason to move into the market yet. I am tracking prices at several properties I am interested in. Almost every week a condo in one of the units hits a new low price.

Add to that a stong hurricane season forecast, insurance and taxes still rising and I just can't see pulling the trigger at least until the fall.

Prices could start up today and never look back, but based on the current trend, I personally just don't see it happening. (And thanks to Kerry the "Wired Agent" for making the trends much easier to track.)

Flyguy

[2bfabian]

I fit your description. I am a 47 year old boomer who wants to buy a beach condo for a second home. I can afford it now but see no reason to move into the market yet. I am tracking prices at several properties I am interested in. Almost every week a condo in one of the units hits a new low price.

Add to that a stong hurricane season forecast, insurance and taxes still rising and I just can't see pulling the trigger at least until the fall.

Prices could start up today and never look back, but based on the current trend, I personally just don't see it happening. (And thanks to Kerry the "Wired Agent" for making the trends much easier to track.)

Flyguy

Dear Sir,

Thank you so much for helping us understand your concerns on the real
estate market right now. For many of you looking for a place on the water there is a place on grand lagoon which has boat slips and is a fix er upper.

It's in foreclose right now and the bank has been offered I believe 81,000 dollars. There asking 120,000. There is potential for a good profit,but the townhouse needs work. I would not be surprised to see this play sell in the next couple of days for possibly 85,000. It's approximately one mile from
capt. Anderson's and would be great as a place to come and crash on weekends.

Hell, If we got to hit bottom here is a start. If anyone is interest PM soon because I don't think it will last at that price.

and no I am defiantly not a Realtor as you may already know. But if your a bottom feeder I guess here is one for you to look at for right now.