"Are You Trying to Screw Me?"
Posted by Keen Team on Wednesday, August 6, 2008 at 3:17:22 PM By Keen Team / August 6, 2008 Comment
But...depending on your situation...the market might be.
I just got back from meeting with a potential client who is looking to sell his 1 bedroom 1 bath loft in downtown Atlanta. Before going to visit with him, I put together a quick market analysis for his building.
The analysis uncovered the following:
There are currently five 1 bedroom 1 bath units on the market ranging in price from $170,000 to $225,000. Two units at the lower end of the active value range have been on the market for over 9 months not selling.
In the last 6 months there have been 4 successful sales while 16 properties have gone off the market as unsold.
This means, for every 1 unit selling there are 4 units going off the market as unsold.
Of the 4 sales, 3 of them were comparable 1 bedroom 1 bath units. All of which sold at $115,000 under distressed (foreclosure) conditions.
The seller bought his unit 4 years ago for $150,000.
With a 1 in 4 chance of selling and an established value of $115,000 (based on recent sales) I was in a position to deliver the bad news that his unit had not appreciated since his purchase (or at least he's lost any equity he'd gained since the market downturn). I recommended he not list any higher than $150,000 if he was serious about selling. Even that was an optimistic outlook.
This is a tough situation for anyone, I know.
His response to the news? Well...he suggested that I was trying to "screw him" and make a quick sale by suggesting a low price for his unit.
Folks, I don't make these numbers up. They are what they are - separate of me compiling them and showing you where the market is and might be headed as a result.
It's a bad situation when telling the truth comes across like trying to screw someone. And I suppose this market calls for a new skill - I call it "the subtle art of telling the truth and not screwing people in the process."
I've got a lot to learn.