Are some sellers getting cocky now?
OK, I know, it's not the way it's supposed to be working right now.
Trulia predicted panic among home sellers this spring. As the theory goes, sellers will start slashing prices like crazy in hopes of snagging a buyer before the tax credit goes poof on April 30.
I know - I blogged about it.
Yet one frustrated buyer, searching for a home in the suburbs north of Boston, is getting a much different vibe.
An IT specialist,"Frank," as we shall call him, has been carefully researching the market and making good but sensible offers on what he thinks a home is worth, not necessarily what it is listed for.
But he believes his careful approach is being undermined by a flood of tax-credit-driven "idiots" who are ready to stretch and bid higher for properties that just aren't worth it.
As a case in point, Frank emailed me a copy of an exchange he had with with a seller's agent, one in which he was told very politely, but unmistakeably, to shove it.
Renting what he calls a great condo in a community just north of Boston, Frank is married and looking to buy a suburban home with the extra space he needs to start a family someday.
Frank had previously offered $385,000 for the three-bedroom Colonial in Stoneham. It had been on the market for more than $400,000, and Frank watched the home go off the market after he was outbid.
"I have been in Boston since '85 and I have seen what happens with real estate," Frank told me yesterday afternoon. "I am not willing, nor do I need, to overpay."
However, the sale fell through and the home hit the sales block again, prompting a call by Frank to the seller's agent, who had previously been responsive to his requests for heating bills and other information.
This time, he didn't come back with another price, but instead tried to open the door for another offer. I have changed the agent's name and taken out the address, but the rest is unaltered.
"Louise"
Thanks for the update. What price are your clients willing to consider?
I don't want to waste your time and mine, if they have unrealistic expectations (ie, think that it's still 2005-6).
The tax credit expires next month, and I am confident that prices will be more realistic after that. We currently rent a very nice luxury condo with pool, gym and everything covered for $1600 a month, so we are not in a hurry.
If your clients are willing to take a $100,000+ profit on the house, and also be relieved of paying 2 mortgages, I am willing to take a look again.
Best regards,
Frank
Sounds reasonable, nothing to take offense at - some good, hard headed thinking that would put most prospective home buyers to shame.
This, however, was Louise's reply:
Hi Frank:
Thanks so much for your e-mail.
Your condo sounds wonderful!!! I truly do not think 23 (street deleted) is the home for you and do wish you luck in your search.
Thanks again - Louise
I'm frustrated for Frank - while also questioning what planet these sellers are living on.
Frank's previous offer was clearly below the listing price, but it was more than $20,000 above the assessed value and would have let the sellers walk away with a cool $100,000 gain. (Frank researched both the previous sale price and debt on the property.)
First built in the 50s, the Stoneham home's bathrooms badly need updating and the supposedly gleaming kitchen features a $4,000 stainless steel refigerator next to a dumpy dishwasher and stove.
When you throw in the aging carpet that has to be removed and replaced, you are talking at least $15,000 worth of work, he figures.
Not surprisingly, Frank can't wait for the tax credit to expire and take all the tax-credit-driven buyers out the market.
"Once the tax credit expires, all the idiots will go away for a while," he said.
Maybe a little harsh, but I can understand the sentiment.
