Back in October I did a post on the Bohall Family- a family in Mesa, AZ trying to sell their house so they could move into the new home they had built. If you missed that story, or need a refresher, the East Valley Tribune said:
Craig and Shannon Bohall bought an existing home in Mesa three years ago, and now they have an opportunity to move up to their first brand new home. Their house, near Baseline Road and Val Vista Drive, has five bedrooms, 3 1 /2 bathrooms and lots of amenities. They put their house on the market more than a month ago in hopes of a quick sale so they can close on their new home by mid-November.
However, the house hasn’t budged. It’s just sitting on the market day after day without drawing any buyer interest. The couple already has cut their asking price from $564,995 to $559,995.
The Bohalls have sweetened the deal by offering a free trip to Hawaii, a free big-screen TV and $10,000 cash to whoever steps forward and buys their house.
“We’re in a bit of a time crunch, and that’s why I thought instead of just giving an incentive like everybody does, like we’ll pay $3,000 worth of your closing costs, I said no, let’s make the incentive big,” Craig Bohall said.
That wasn’t all the Bohalls tried. They also managed to have their story told on Channel 5 and Channel 15, in addition to the newspaper coverage. It wasn’t working though. In January the price had been cut to $525,000- still no takers. [For what it is worth, Zillow estimates their property value at $518K]
I asked L about the price history:
In addition to selling it, they were also trying to rent it, but they gave up on that in December. They wanted $2,300 a month…. As far as the selling price, it’s difficult to track- he’s changed it so many times. It was $574,000 or more. It was down to $474,900 when he cancelled it. Now he’s changed the price even though it’s cancelled to $525,000 again. I think if they decide to put it back on the market one day he can say, "Look you’re getting a deal! It was $525K- we’ve reduced it to $474K," or whatever.
In February the "Realtor remarks" of the listing were updated:
REALTOR Remarks: sllr financing! Call agent or owner then use lck bx. give 30 min (smll chldrn). Rltr related to sllr. Hand painted pedestal sink does NOT convey. murals in niches =removable. *rock bottom price!* 2-28 deal is gone – seriously!!
Apparently they were serious- the listing has been cancelled.
[Our thanks to L, who has been keeping us updated on this story!]









We have a much appreciated source who has listed homes in Bohall’s subdivision of Dana Ranch- I asked him his opinion of Bohall’s pricing:
Yes, in a market like this you should never price a home a little high and see what happens. Following the market down racks up MLS days on the market (DOM) and inevitably results in low-ball offers.
Sellers should position their homes as the best bargains available in the marketplace right from day one. That will put the most money in their pocket in the least amount of time.
Words of advice from a 27-year real estate vet.
Scott
http://www.cr-az.com
Well just another story about a couple that didn’t have their greed formula come together as planned. I find it interesting that they purchased that house 8/1/2003 for 268,900 and now they are dissappointed that it hasn’t sold for over 500K. A lot of all these problems that are coming to a head later this year in housing were all caused by a major problem in america today G R E E D !
Scott -
Appreciate your experience and insight, and wanted to address the “low ball offer” comment.
If I had offered them $ 474,000 the day after they listed it for $ 574,000, both Agents and the sellers would be screaming “LOW BALL OFFER” at me in disgust!
I heard somewhere that the difference between a fithly rebellious traitor and a revolutionary is often a matter of timing.
(and whether they are victorious in their endeavors)
Perhaps the difference between a low-ball offer and a “reasonable” offer is as well?
Also, what if I offered them $ 374,000 tomorrow morning… how would that be perceived?
How about in 3 months?
And $ 2300 / month rent!?!?!?!
I think Twist commented on de-facto investors a couple weeks ago who just set the rent at whatever they need, rather than market rent values.
Perhaps because rent is paid with real money from real income that it seems to be so “sticky.”
Or since I’m a cash buyer “competing” against someone who might be (or might have been) counting on a sub-prime loan to buy the house, how about an offer of $ 274,000?
Have I reached “low ball status” yet?
If that upsets the Agents or the Sellers… They won’t like the next one, either…
but $ 174,000 is a LOT closer to making the NOI & ROI numbers work as an investment property in the current rental environment.
Any thoughts, Scott?
Great update. Thanks Twist, I enjoyed it.