Aces & Eights is known around the world as the Dead Man's Hand. So ... what does that have to do with Real Estate? Lately I have read several articles on how to make a low ball offer and get the Seller(s) to accept it.
Most readers (including real estate agents) forget that all real estate is local! In Detroit or L.A. or New York there may be more Sellers than Buyers, a large inventory of unsold, new construction homes, etc. You "might" be able to make a low offer and buy the home. That does not apply to all real estate markets.
Star Valley is a prime example. We are a resort community steeped in the shadows of Jackson Hole's World Class Resort and Yellowstone Park. Rarely do we see situations where a job transfer forces a sale, or there is a large workforce layoff. Our "large" builders build three or four (that is 3 or 4!) homes a year ... not several hundred! A high percentage of homes are second homes, vacation and/or investment properties.
In our present market, presenting a low ball offer is a very big gamble that will usually offend the Seller. Usually, once the Seller is offended no matter what the Buyer does next, the Seller does not want to work with them or there agent.
The big question for the Buyer is to determine what to offer? How much you can spend is no concern to the Seller. The Sellers want top dollar for their product and will overprice!
I encourage Buyers (and their Agents) to research the local market conditions. Create a Comparable Market Analysis (CMA) the same as if you were going to list that property For Sale. While knowing what similar properties are being Listed for, the most important number is what are they "Selling" for.
Other factors to consider are how many days has the home has been on the market (DOM), any offers, price reductions (or increases), etc. Here again I urge caution! I have seen numerous articles that you should never list a home for more than 30-60-90 days!
Depending on the price range, properties in Star Valley will average from 100+ days to over 400-days! A low ball offer based on DOM is, in all probability considering our present market conditions, Aces & Eights ... a Dead Hand!
2 comments:
A low ball offer is only in the eyes of the seller. Star Valley is not connected in any way to Jackson Hole. Most visitors make a u-turn at High
School St. The valley depends on outside money. Those buyers are very selective in where they purchase there vacation home or investment property. What I bought was a dream,when I purchased my land here.I made a low offer.At the time of the offer it was a very strong market. If it was countered I would have walked away. I found out that nothing gets done here in a timely manner. Instead of developing my land I bought into a Condo Development with big plans only to find out builders can't produce. A lot of land has sold and a lot is on the market but the locals don't want change. They just want to sell there land to investors that will never come here.
i dont think star valley is like jackson because the old timers as you call them will say piss off to the rich people who think they can come and run our valley they dont need to come here to run the place just come to live and have fun dont tell us how to live or change our lives with tree hugger acts (dont hunt, fish, or ride your bikes cause the cause polution) for pete's sake they drive hummers and fly around the world more than anyone that was born and raised in this valley!!! what i am saying is dont try to change a good thing
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