I have been looking at Livonia condos and Northville condos with a first time home buyer. We have it down to about 4 condos that she really likes.
I pulled all the recent sold condos in the 3 different Northville condo complexes and we found out that two of the condos were about 20% over priced. Condos that were listed at $135,000 should be selling at about $115,000. The other 2 were close to what they should sell for.
So I went fishing for information from the listing agent. Listing agents aren’t supposed to tell you anything about their client or their bargaining position unless the client lets them. But information slips out all the time even with the best agents.
The listing agent normally sends out a email form asking for feedback on what we thought of the condo. They ask if we think it is in good condition, what we think of the price, and they even have a comment section. So I filled out the comment section saying that compared to the recent sold Northville condos that sold in the complex theirs were high about $20,000 too high. That my client was interested but…..the price was an issue. One I don’t know if it would even appraise at $25,000 lower to meet the banks standards.
Well one agent called up and said don’t let price be an issue. He had talked to his client and the client said to bring them an offer. Bingo. I got what I needed to know. They were flexible and they realize that the Northville condo was a little overpriced.
On the opposite end I got a call from the other agent. Now he spilled his guts. He told me everything about the seller and his position. Where the seller was moving to and all about him. He also stated that we couldn’t count Northville foreclosures when comparing prices. (What planet is this agent on) He basically said his condo was a great price. And this was the condo that absolutely needed to come down $14,000 even to be in the ball park. Sure somebody might pay cash and over pay for the updated condo. But it wasn’t worth the price in this Metro Detroit real estate market.
So after talking to this agent we more or less can cross this condo off the list. Because they aren’t going to deal and they are overpriced for the market. It saved us a lot of time putting in an offer and wasting our breathe.
Now we down to three choices. So whatever my client chooses at least she knows where theNorthville condos should be priced at and what is a good deal on the home.