I am looking for a second home in Sullivan County NY. I'm getting so frustrated because it seems that sellers are not being realistic in this market and are being very firm in their asks. What makes it even more difficult is the fact that nothing is selling up there and there are no real comps. I've been bidding about 15 or 20% off the ask and willing to negotiate from there. Is it me who's being unrealistic? I have cash and it seems no one wants it!
Hello Swim-Hike-Sky--So you like to swim, hike, and maybe skydive or rock climb. Great handle there. Great question. Here's my take:
Comps are difficult to come by for certain properties. We don't have large row house developments or hundreds of tract homes from which to draw. Acreage varies substantially from property to property. Water front factors also contribute to lack of clarity in the general pricing model. Almost every parcel is unique in character, age, and disposition.
Local homeowners are very different from second homeowners. Sullivan County is not known for high salaries and luxury condominiums--although, we do have some of each. We locals may be bit more negotiable if we intend to sell.
Second homeowners, however, are much different. Since, in many instances, there is no financial pressure, the seller just crosses fingers and hopes to get an unrealistic higher price. These are not serious sellers. They are casual sellers unmotivated to move their property.
Some second homeowners are bleeding, but not profusely enough to come to their senses. I think reducing listing price to reasonable current market conditions is certainly the way to go. Most real estate folks agree that legitimate pricing is a prime factor in bringing buyer and seller together.
When I make a listing presentation, I let the seller know that the best shot at selling has more to do with correct pricing than my skills or experience. Reasonable pricing, using the best available comps, lubricates the successful property sale.
Some of those comps may be derived from sales more than 12 months ago--perhaps even longer because of the economic malaise here and across the country. Generally, you'd want to have the most recent sale stats to gage an opening negotiating stance. Due to the lack of overall sales, comparables remain elusive. Those apples to apples comparisons we do have, show a very real decline in average sold prices.
Negotiations often ruffle feathers. Matching a buyer and seller involves misplaced feathers sometimes as well. Find out as much as you can about the seller's needs. Maybe a quick closing, or rent back clause would bridge some of the monetary issues that tend to upset sellers when they believe they are being lowballed.
Meanwhile--good luck with your search.
Visit The Sullivan County Catskills Now
Contact Me Here For More Information
John Kavaller-Licensed NYS Agent & REALTOR®845-482-3200 Ext. 13: Office-845-492-0261: John’s Cell
No comments:
Post a Comment