questionable motivation of sellers

[Smiling JOe]

I just saw a price change for a listed property, which had notes, "VERY MOTIVATED SELLER!! BRING ALL REASONABLE OFFERS!!... Priced to sell!" I bet you wouldn't think the seller was so motivated if you saw the price change. It increased from $497,500 to $685,000. :shock: That is a 37% increase in price. Motivated seller??? Makes me wonder what that means anymore. Does that mean that if can negotiate the price down to $497,500 and feel like you got a huge discount?

Personally, I think the house is a great buy at $500K, but even great buys are not selling like hotcakes right now.
Perhaps there is more to the story, like the property recently receiving a zoning change allowing greater density or something, which might change the value, but on the surface, it just doesn't make sense. If it didn't sell during the last 5 months, priced under $500K, I'm not sure that it will sell now for $685K. A few sellers are realistic in their pricing, but I still question so many of the people who have property listed.

 

[Bob]

SJ, it's like they're trolling with no bait on the hook expecting a crazed fish to latch on....so to speak.

 

[Smiling JOe]

SJ, it's like they're trolling with no bait on the hook expecting a crazed fish to latch on....so to speak.

I would take your analogy one step further and say in addition, they are waving a sign, which reads in fish-speak, "there is a big fat juicy worm for you to eat, right here on this thing that looks like a hook, which is following our boat."

You see, I don't have a problem with sellers trying to find price points. Okay, so they tried 498K, and didn't have any luck. Some people looking for homes in that price range might make $500K the bottom price on their search. If it didn't work at 498K, bump it to $515K, and see if it gets more hits.

One other thing that I find as extreme is raising the price 37% and keeping the notes, "Priced to sell, very motivated." It isn't that the language is a lie, and as I mentioned, maybe the value increased due to something else which they don't note. However, I do think it is rather extreme marketing, and once a buyer finds out about the price jump when researching the history, he or she will look at everything the seller, and the sellers' agent, says with a big bold ?

 

[2bfabian]

Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?

 

[SHELLY]

Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?

2b,

Keeping with the "Hawaiian Theme" of your post, I offer up the following April 2007 excerpt from the Big Island as told by the Real Estate Kahuna in the land of Aloha:

"There's a lot of inventory around. Buyers are looking around instead of jumping at the first thing they see," said Hawaii Island Board of Realtors President Mary Begier.

The dropping numbers appeared everywhere on the island.

Ka'u saw the largest decline in the number of home sales so far this year, from 42 sales to 25, a 40 percent decline. South Hilo declined 36 percent, from 74 sales to 47.

Begier cautioned that the North Kohala market -- with nine sales in the first quarter of 2007 -- is small enough that a few high-dollar sales would create a spike in the median price statistic.

Overall, it's a buyer's market, and sellers should wake up to that fact, Begier said.

"I'm telling sellers if they want to move their property, they have to offer value," Begier said. "People who have been listed for over a year didn't take my advice, and now they're chasing the market down. Sellers who still think it's a seller's market are only going to hurt themselves."

Maka'ala ke kanaka kahea manu.

.

 

[full time]

"Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?"

What other professions do you practice without a license? By the way, if you have a law license, some Florida CLE might be in order to get you up to speed. I have my doubts that a 1990 Hawaiian appellate court decision is going to carry much weight on Florida real estate matters and the issue of a realtor's obligation to the seller is hardly an issue new to a Florida judge. But if so, I hereby recommend to the the lawyers that they tell the court to cf SoWal.com and 2bfabian for authority.

 

[2bfabian]

Thank you for you polite comments Shelly. Yes, we are definitely in a market that has not been seen since I was stationing at Ft. Carson in the early 80's.

I can remember people ready to just give there property away because no one was buying.

My fear is people will panic and send this market into a tail spin that will take a decade to recover from.

Please understand that I do see your argument, and loved the Hawaiian song.

 

[Mango]

Maybe they struck oil SJ, hence the price increase.

Here in N.Y. my property has a deed restriction that if I hit oil it belongs to the Phillipse family. :roll:

 

[2bfabian]

"Client/Fiduciary Duty: if you hire the realtor, you are the realtor's "client." It does not matter whether you are the buyer or the seller, you are still the "client" if you hired your own realtor. So, if you are selling the house, you are the "client" of the realtor who lists the house for you. A realtor has a "fiduciary duty" to his or her own client. This is the highest duty the law imposes. It is even higher than the duty owed by a physician to his or her patient. Hawai`i law is clear that due to their fiduciary duty, realtors must exercise the "utmost" and "extraordinary" diligence. SGM Partners v. The Profit Co., Ltd., 71 Hawai`i 506 (1990).

Don't you feel this is what these realtors understand as their duty?And in return are looking out for the sellers?"

What other professions do you practice without a license? By the way, if you have a law license, some Florida CLE might be in order to get you up to speed. I have my doubts that a 1990 Hawaiian appellate court decision is going to carry much weight on Florida real estate matters and the issue of a realtor's obligation to the seller is hardly an issue new to a Florida judge. But if so, I hereby recommend to the the lawyers that they tell the court to cf SoWal.com and 2bfabian for authority.

Dear sir,

If you would be so kind as to allow me to know, what makes you think that I was intending to practice law without a license?

Please be so kind as to let me know what gave you the impression I was not up to speed.

Your last sentence seems to not make much sense,but I still apreciate you comments,and hope you have a nice day.

 

[Smiling JOe]

Maybe they struck oil SJ, hence the price increase.

Here in N.Y. my property has a deed restriction that if I hit oil it belongs to the Phillipse family. :roll:

:roll: Well, this house is located in Freeport, and depending on the location, an oil companhy may own the mineral rights of the property -- not uncommon in Freeport. ;-)