We Have Buyers

[Smiling JOe]

I guess the real question is how many sellers are accepting 35% off their price.

 

[Mango]

Mango ---- that's cute. But honestly, these folks are simply offering up another option to sellers who are in desperate need to sell. It may appear that they are "indian givers" to some but to others they might just be their saving grace. At this point in the game, how many offers are people really getting on their homes today?

I guess the real question is how many sellers are accepting 35% off their price.

Another option to desperate sellers? Not in my book. Sound like a bunch of bottom dwellers who are doing the dirty work for some other bottom dwellers, who are afraid to come out from under the rock.
When the current appraisals come in, I would bet that they rip apart even the most conservative of appraisals, and my fear would be some unsuspecting seller might just be even desperate enough to beleive their property is even more so overvalued, or have wasted time with these Indian Givers because they held up a potentially valid sale, with a real purchaser without the "maybe" clause.

I didn't like flips back in 2002-3 when I was looking for property. When the listing realtor who sold me a property offered to put it back on the market before it even sold for a higher price, it made me sickened. I was just waiting to see if some little old lady who didn't know the value of her property had this happen to her and what the legal ramifications were going to be. I believe there was a case where the realtor sold an elderly ladies property for $100K when it was worth about 1MM.
IMO, the realtors who list a property should be trying to get the best and highest price for it.

They may not be your listings these investors are bidding on, but if the property is listed with a realtor, the realtor should be protecting their clients by advising them not to get into these types of scams in my opinion. The market will regulate the price someone gets. If it isn't selling at the price they list it at and they truly need to sell, the market will dictate if they lower on their own.

 

[Camp Creek Kid]

They may not be your listings these investors are bidding on, but if the property is listed with a realtor, the realtor should be protecting their clients by advising them not to get into these types of scams in my opinion. The market will regulate the price someone gets. If it isn't selling at the price they list it at and they truly need to sell, the market will dictate if they lower on their own.

Totally agree. Having gone through this process recently, there are buyers if the price is right. I was told that Seaside sales are happening, but at 20% less than original list price. In other words, sellers are having to come down 20% from an unrealistic price. Our property is not is Seaside, but we did get a contract that is about 20% less than our original list price. We thought our original list price was very reasonable compared to other LIST prices in our area, but obviously everyone was too high (and there were no recent sales comps).

So, for this thread, I suspect that if a seller has a recent appraisal at 1M and a listing at that price, if they lower 20% to $800,000, they may get some interest without having to sell out at $650,000. These questionable buyers wouldn't be doing this if there wasn't $$$ to be made.

 

[2bohemians]

Mango --- certainly we can see your point of view and we appreciate your sharing it. It sounds as if you or someone you know may have been the victim of some questionable practices. Believe us, we have had alot of crazy offers in the last couple of months --- most of them scams --- wanting large sums of cash back at closing. You really have to be more careful than ever.

However, we want to assure you that this is not a scam. We, along with our broker, title companies, former FBI agents have checked these folks over and they are legitimate.

And yes, in a sense, they are preying on people who are desperate. That's what investor groups usually do --- look for steals with potential to make a profit. But these folks aren't trying to hide anything, they fully disclose everything, including the exact dollar amount of profit they intend to make. And they are not out twisting anyone's arm to sell. They are completely honest about how they operate and if someone wants to participate, then the option is available to them. There are alot of owners who desperately need to get out --- and just like auctions, this is simply another way to try to accomplish the goal of selling.

Neither one of us or our broker are unethical people. We would NEVER try to take advantage of anyone -- it's just not in our blood. And of course if these were our listings, we would do our best to get the best deal for our sellers. However, you have to be realistic about what has happened to the market here. Sellers are lucky if they can even get a showing much less an offer. All we were doing by writing this post, was letting people know that this may be an option for them. No one is going to make them accept it --- we just wanted to open it up for discussion to anyone who was interested.

 

[2bohemians]

Camp Creek Kid ---- yes, we agree ... if seller's would adjust their prices accordingly, we are certain they would see an increase in activity. Unfortunately, there are still many people out there who continue to be in denial about the drop in prices. It's a hard pill to swallow. And then there are those who bought way too high and are now faced with either taking a loss or possible foreclosure.

We are not saying this is for everyone --- but for some it may be another alternative. Most properties they are looking at have been on the market for at least a year ... maybe even longer .... and after a series of reductions, they still aren't getting any action.

 

[Mango]

Mango --- certainly we can see your point of view and we appreciate your sharing it. It sounds as if you or someone you know may have been the victim of some questionable practices. Believe us, we have had alot of crazy offers in the last couple of months --- most of them scams --- wanting large sums of cash back at closing. You really have to be more careful than ever.

However, we want to assure you that this is not a scam. We, along with our broker, title companies, former FBI agents have checked these folks over and they are legitimate.

And yes, in a sense, they are preying on people who are desperate. That's what investor groups usually do --- look for steals with potential to make a profit. But these folks aren't trying to hide anything, they fully disclose everything, including the exact dollar amount of profit they intend to make. And they are not out twisting anyone's arm to sell. They are completely honest about how they operate and if someone wants to participate, then the option is available to them. There are alot of owners who desperately need to get out --- and just like auctions, this is simply another way to try to accomplish the goal of selling.

Neither one of us or our broker are unethical people. We would NEVER try to take advantage of anyone -- it's just not in our blood. And of course if these were our listings, we would do our best to get the best deal for our sellers. However, you have to be realistic about what has happened to the market here. Sellers are lucky if they can even get a showing much less an offer. All we were doing by writing this post, was letting people know that this may be an option for them. No one is going to make them accept it --- we just wanted to open it up for discussion to anyone who was interested.

I never suggested that you or your broker were unethical people, nor have I or family ever been a "victim" of any real estate scams.

It's very easy for anyone to go out there and say hey, I'll buy your property for 65% of value, but if I don't make a profit in 30 days, well ooops, sorry, it's been nice talking to you. :roll:

I think by getting in bed with this group, IMHO, is just a "let's see what " sticks to the wall" practice because I honestly can not believe that anyone with any equity in their property would be willing to take what they are offering, and I feel you may be wasting your time, and I wouldn't be tempted by the waiver of moneybags.
Just my 02.

Realtors should be suggesting at listing, and if a property has been lulling on the market for an estended period, a certified appraisal.
Comping properties by a realtor, unless they have been to school and have an SRA designation, is difficult to do right now in this market.
The Gulf is a different market with views adjustments, distance to beach, lot sizes, etc. and it can even be difficult for the most seasoned appraisers.

 

[SHELLY]

Interesting comments regarding the current state of the "upscale" coastal Florida market...South and now North Florida both.

 

[goofer]

Someone would have to be very desperate and very dumb to deal with these "investors" It is a classic bait and switch scheme. A pure scam.

 

[SHELLY]

Someone would have to be very desperate and very dumb to deal with these "investors" It is a classic bait and switch scheme. A pure scam.

......they're "stickin' a fork in them to see if they're done."

.

 

[2bohemians]

Goofer --- if you choose to view this as a 'scam' certainly that is your choice. We are wondering if you have any facts to back up your claims? As we said before, there is Full Disclosure ... you can't scam someone if you are telling them every intention of your plan and giving them an opportunity to review the details. If they don't agree with the terms, then there is no one holding a gun to their head to make them sign the papers.

Also, the fact remains that there alot of property owners really hurting and they are extremely desperate. Unfortunately this market has dropped dramatically and the prices reflect this change. If a person chooses to sell their property at 65% of its appraised value, then we wouldn't consider them 'dumb' --- they would simply be making a choice that they felt was best for them at the time. If someone has a property that is worth way more than what this market will allow and they DON'T HAVE to sell, then we highly recommend that they hold on to the property until the values rise again in the future.

Thank you for sharing your opinion, we do appreciate it --- even though we don't agree with it.