Knowing your Market - Posted by Laure

Posted by Reif on March 23, 1999 at 24:44:44:

Help me out, Laure.

I’m still new at this, and coming from San Diego, where people are still getting above list price in cash for many houses, I’m confused about your tactics.

You could get this house for 53K and sell it the next day for 69K? Even with 10% ‘air’ there still seems to be a nice little sum of about 6-8K there.

Why didn’t you go for it?


Knowing your Market - Posted by Laure

Posted by Laure on March 21, 1999 at 09:43:59:

Went to a real estate auction yesterday. It was an estate. I was willing to pay 40k for the house as another a few blocks away was listed with a realtor for 48, and I had looked at it. The auction quickly went to 46,000 then stopped. The family said their reserve price was 53k and the house was NOT sold ! The guy with the 46k bid OBVIOUSLY did NOT know the market. 46k would Not have been a deal !!! But ya gotta know the market to know if there is a deal or not.

Laure :slight_smile:

Re: Knowing your Market - Posted by phil fernandez

Posted by phil fernandez on March 21, 1999 at 15:08:37:

Hi Laure,

How are you going to get the house appraised for $69,000 if similar houses are selling for $48,000.

Re: Knowing your Market - Posted by Laure

Posted by Laure on March 21, 1999 at 09:45:51:

I know what you’re all saying… 40k wouldn’t be a deal either. EXCEPT that I have a pre-qualified family waiting for a 3/1 who is willing to spend 69,000. THAT WOULD BE THE DEAL FOR ME !

Laure :slight_smile:

Re: Knowing your Market - Posted by Laure

Posted by Laure on March 21, 1999 at 23:24:53:

He and two others are willing to pay 69k. This neighborhood has increased 10k+ in the last 8 months. Some people just don’t know it and still have their houses listed lower than what they “can get”. Even though this house has been on the market. It started at 62k and is down to 48. It’s one of those that has that stigma… “must be something wrong, cuz it’s still on the market”

I sold a house, split foyer in same neighborhood for 73,500 closed in January. I replaced it with a split foyer (1031 exchange) 5 blocks away which I paid 52k for. I just L/O it out tonight for 69,900, 2 year term. 5k down, 695/ month, and THEY do all the painting, strip the wallpaper, re-hang paper, etc. That’s a 20,000 swing in price for only 5 blocks. I sold the split foyer outright with FHA financing !!

How would I sell it for 69? Because they are willing to pay for it! There is a house up the street for sale for 68k, however, not sold yet.

Maybe that house for 48 is still on the market because they have ugly red carpet in the living room. So, I’d replace the carpet ! No biggie.

Laure :slight_smile:

Re: Knowing your Market - Posted by JPiper

Posted by JPiper on March 21, 1999 at 10:30:47:

The question that comes to my mind is how does a prequalified buyer pay $69K in a neighborhood where you say the comps are $48K?