Today’s short little podcast is about listed homes being bugged while buyers go through for showings. Here are somethings to be careful talking about inside the home.
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A fake email is claiming that in 2013 there will be a 3.8% sales tax on all real estate transactions. This podcast tries to explain the truth.
Podcast: Play in new window | Download
Chimney maintenance and a fireplace inspection can make the difference between warm safety and drafty danger. Read
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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
The Lowball is that sick, insultingly low offer that punches a seller in the stomach and kicks their dog too. It’s probably here to stay for a while.
Why did the lowball appear?
1)Buyers want to get the best deal possible and will the test the waters of how low you will go.
Couple that with
2)Buyer’s seeing real estate shows with extremely great deals
and triple that with
3)The huge inventory of homes along with a large inventory of bank owned (REO) properties a few buyers to pick up the houses
it’s no surprise that the lowball is here.
After getting punched by the lowball, and your dog being kicked, how do you handle it? The two options are Reject or negotiate.
Most people at first want to reject it. A perfectly legitimate reaction, who likes to be abused? It could possibly the best course of action especially if there are multiple fair offers. No sense in wasting time here.
However, what if the lowball is the only offer on the table? Should it be flat out rejected? The buyer is interested enough to at least put in an offer.
So on the lowball did the buyers agent include comparables? If they did, it’s a sign of a willingness to negotiate. Send over a counter offer with comparables of your own. The worst that can happen is no deal is reached.
What if there are no comparables? It’s possible the buyers are testing you to see how low you will go. It’s also possible that the buyers are not serious or maybe the house is a little out of their price range and the lowball is hoping to get it there. How do you know which it is? You don’t unless you write up a counter offer.
Unless the list price is way off base, the counter offer does not need to be drastic, after all, you did just get punched and your dog was kicked. Instead, make it something that show’s your willing to negotiate but need a serious offer back. Maybe lower the price a bit and keep the Fridge. Hopefully they get the hint and comeback with a more reasonable offer?
If it’s another lowball and you feel up to the task of a long drawn out negotiation process, you can counter back, after all, this is the the only offer on the table and the worst that can happen is no deal is reached. If you don’t think you’re up to a potential long drawn out process, maybe its best to reject it, just keep in mind this could be the last offer for awhile.
No one likes to get a lowball offers. In this market though, they’re here to stay. Rejection while usually the first reaction, may not be the best option. Consider countering back a time or two to see how serious the buyer is.
Home sales are off to a great start this year in Valparaiso with more homes sold last month than there were in January 2010. In Jan. of 2010 we closed on 36 homes, last month we closed on 47. That’s a huge increase of 30.56%.
Some quick averages on the homes:
Average bedrooms for both years was 3.
Median number of bathrooms was 2 in 2010 while in 2011 it was 2.5
In Jan. 2010 the average sq. foot of home sold was 1797 while last month it was 2133 for an increase of 18.7%
For average sales price in 2010 it was $191,922 while last month it was up to 226,639 for an increase of 18.05%
Also, average days on market for homes closed January 2010 was 148 days while homes closed last month it was down to 122 days. Which means were getting houses sold an average of 22 days sooner.
| Jan 2010 | Jan. 2011 | percent change | |
| Homes closed | 36 | 47 | 30.56% |
| Avg. Bed | 3 | 3 | 0 |
| Med. Bath | 2 | 2.5 | 25.00% |
| Agv. Sq foot | 1797 | 2133 | 18.70% |
| Avg. Sales Price | $191,922 | $226,639 | 18.05% |
| Days on Market | 148 | 122 | -17.57% |
One thing to keep in mind is that in the first half or so of 2010, the market was being helped out with a tax credit. The increase of homes closed last month were standing completely on their own.
If we can keep this up, we should have a great year compared to the last few.
