Sunday, March 1, 2009
What in the world?
As you know, I have a listing at 5304 Illinois Ave, NW. We lowered the price dramatically from 275K to 235K because my seller needs it to move. And we've gotten 2 offers as a result. YEA!! Right?? Um..no.
Apparently, if you're in this price range in the DC market it's a clear indicator to buyers that they MUST low ball you..to death.
Let me remind you before I go further: this is not a foreclosure, short sale or estate sale. It's a house that needs a lot of work but is livable. A thorough cleaning and some new paint would need to occur, but livable.
The first offer was all cash (yea!..quick closing) for 149K. WOW. 86K off list? We countered at 220K. My seller has an idea of what she'd like to get and we know everything is negotiable. Their counter? 150K. Yes..you read that correctly.
Our second offer was 180K with $12,500 in closing costs , a home warranty from us and they're using an FHA loan. Did I mention this house is "as-is"? Have I also mentioned that banks DON'T ALLOW a closing cost credit higher than 3% of the purchase price? But, I take every offer seriously. We're countering.
I'm writing about this because I hadn't experienced this market. I'd read about it. I knew sellers were hurting. But this..this is appalling. My seller is in the position to wait for an offer that she finds appropriate. This is her Aunt's house and she's selling it to fund the rest of her life in a retirement home. She feels a responsibility to get the best possible price. But there are sellers out there that HAVE to take one of those offers. Ugh. Let me wipe the slime off my face.
Maybe I'm being too idealistic. Maybe we will have to accept one of these offers. But bluck.
Life as an agent in 2009. Wahooo!