Comments on: Update- Mesa House Didn’t Sell Despite Incentives, Cash, Media Coverage

By: manfre

manfre — Fri, 09 Mar 2007 06:25:26 +0000

Great update. Thanks Twist, I enjoyed it.

By: Asset Hunter

Asset Hunter — Tue, 06 Mar 2007 03:05:13 +0000

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?

By: Asset Hunter

Asset Hunter — Sun, 04 Mar 2007 18:46:01 +0000

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.”

By: Asset Hunter

Asset Hunter — Sun, 04 Mar 2007 18:42:13 +0000

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?

By: pavel96

pavel96 — Sun, 04 Mar 2007 18:19:17 +0000

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 !

By: Scott Clayton

Scott Clayton — Sun, 04 Mar 2007 18:11:16 +0000

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

By: twist

twist — Sun, 04 Mar 2007 16:13:26 +0000

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:

Dana Ranch is a very nice area. DOM was 30 days (single story) up till mid-06. Very few investor flips-established neighborhood. However, I started seeing significant pricing pressure from the newer areas of East Mesa and SE Gilbert. For those who think that what happens in “other” parts of the Valley has no influence on their pricing……..this could be exhibit one! In addition, this is a classic example of overpricing a home and following the market down. This home should have sold for 500-525k last fall, they started at 560K.