Tuesday, June 8, 2010

Guest Blogger: Peter Richman

Yesterday, Peter Richman, owner of Richman Properties, said to close any sale it needs to be a win-win for both parties involved. Today he discusses what he must do as a broker when a client has a personal attachment with the home he is trying to sell.

As the broker I must:

1. Eliminate the personal touch by the seller/owner. "Mr. seller, I see and understand your blood, sweat and tears is in this home--however, the buyer will have their own touches which may go counter to yours"--does not mean you were right or wrong--once the new coat of paint is on the walls, your personal touch vanishes." What price would you pay knowing
a. the market is the worst in 50 years?
b. the comparable homes are selling for less.?

2. These buyers have perfect credit--with their credit, they can buy anywhere in this market-you should be flattered that they selected your home! Remember, every month your home is on the market, another mortgage payment is made by you. It might very well be another 6 months before a qualified purchaser walks thru the door. By then, the "newly painted, etc.," is not newly painted. Additionally, the home you wish to move into may be sold. Your asking price is $ 250K --admittedly high--you know you should have started at approx $215K.

A decent offer in a NORMAL market is 10-12% below listed price. Therefore, an offer at 200K would be in line. However, this market is the worst ever, comps are lower, purchasers know that and you know that, as well. A price of $185K-$190K for this home is certainly in line. As a matter of fact, $187K with you paying closing costs may be the best offer you may see in some time.

Check back tomorrow for final thoughts from broker Peter Richman on this particular situation.

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