Yep! I couldn't feel better, and worse, for my clients today. I just came from the closing of this BEAUTIFUL home in downtown St. Charles…. Brand new, but on the market for 3 years! Yes, 3 years!I was the THIRD REALTOR for these sellers…… Originally priced at $745,000, it closed today for $535,000! Frightfully, it didn't even appraise for what the buyers ended up purchasing it for…. which once again validates a point that I have been making over and over on my blog in the recent months, which is this:
- There are some times, and they are not as few and far between as the public might think, that a property presents itself as such a value that a consumer will pay full price, or over full price occasionally, because they recognize the value that it truly is….. These buyers were savvy enough to appreciate the fact that this home was beautiful and in a truly special location (at the end of a very, very quiet street, equidistant 15 minute walk to downtown Geneva OR St. Charles, and in one of the most coveted elementary school districts in St. Charles!)and reduced far, far away from the original list price of $745,000! The appraiser, who in my opinion was an incompetent, did a DRIVE-BY appraisal for the lender… YES! HE DROVE BY THE PROPERTY TO APPRAISE IT…. didn't even make an appointment to go inside and see the amenities of the home that he was being paid to do an appraisal on!! The buyers realized this when the appraisal came in ultra-low, and they decided to press forward on this transaction and purchase the home under the terms that they had offered to the seller! Talk about integrity!!! Once again though, they perceived the VALUE and OPPORTUNITY to be too good to pass up, so they seized the day and bought this home!
I have seen this a few times in the recent past. When the foreclosures or short-sales come on the market, some of them are priced SO COMPETITIVELY that it doesn't make sense to try to negotiate down even further… it makes sense to seize an opportunity that would not have been possible 2 years ago, and may not be possible 2 years from now. When you factor in the low interest rates, the opportunity to get the $8000 credit for first-time homebuyers, and the incredible deals that are out there right now, it seems silly (sometimes) to wait for something better to come along.
That's why they call it a "perfect storm"……..until next time,