Brokers Riding Similar Listings. Any strategies as a buyer?
Started by HateMyRental
about 17 years ago
Posts: 4
Member since: Jun 2009
Discussion about
I have seen this happen twice now and as a buyer it's frustrating (although I can why the sellers like it). Here's the situation: there are two units of the same line in the same building (identical floor plans), and one is clearly better than the other. For example: 10B - renovated kitchen and bathroom, drops listing from $630K to $585K 6B - needs renovation, was listed at $599K The 10B unit is... [more]
I have seen this happen twice now and as a buyer it's frustrating (although I can why the sellers like it). Here's the situation: there are two units of the same line in the same building (identical floor plans), and one is clearly better than the other.
For example:
10B - renovated kitchen and bathroom, drops listing from $630K to $585K
6B - needs renovation, was listed at $599K
The 10B unit is clearly worth more, since it's renovated and on a higher floor. Once it drops its price to $585, 6B realizes it too need to lower its price, and drops to $580. 10B then accepts an offer for $550K (I know this, but the market as a whole does not), and its status on all the websites changes to "In Contract $585K". So in my mind, 6B is CLEARLY worth less than $550K since this apartment is inferior. Yet, the broker tries to ride the wave of 10B's "in contract" status on the $585K ask price. So, to buyers who have never seen 10B, she can effectively try to get above $550.
Any thoughts on strategies as a buyer, wanting to buy 6B, but only for under $550 since I know what 10B went for?
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Response by columbiacounty
about 17 years ago
Posts: 12708
Member since: Jan 2009
make an offer?
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Response by HateMyRental
about 17 years ago
Posts: 4
Member since: Jun 2009
I have an active offer in play, but the seller isn't countering below $575 and they've stated the above as their strategy.
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Response by columbiacounty
about 17 years ago
Posts: 12708
Member since: Jan 2009
well...either they're right and they'll find someone else or they're not. short of picketing the building and putting out leaflets about the situation (which i would strongly urge against) what could you possibly do?
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Response by Trompiloco
about 17 years ago
Posts: 585
Member since: Jul 2008
HateMyRental, considering that the market is far from bottoming, I would advise patience. In 3 months 10B will close and if 6B is still there you can offer them 490K. Otherwise just pity the person who overpaid for it. In a year you may be pitying both the buyers of 10B and 6B if none of them is you.
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Response by front_porch
about 17 years ago
Posts: 5325
Member since: Mar 2008
You can't buy data points, you can only buy apartments. If you have knowledge that causes you to believe 6B is "worth" less than $550K, and the sellers believe it is worth $575K.. move on. One of the themes of my book is that there is ALWAYS another apartment, and there is.
ali r.
the book: tinyurl.com/2ag28z
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Response by HateMyRental
about 17 years ago
Posts: 4
Member since: Jun 2009
Good feedback - thanks. I think patience is my best strategy for now. Doesn't lower the stress level though!
make an offer?
I have an active offer in play, but the seller isn't countering below $575 and they've stated the above as their strategy.
well...either they're right and they'll find someone else or they're not. short of picketing the building and putting out leaflets about the situation (which i would strongly urge against) what could you possibly do?
HateMyRental, considering that the market is far from bottoming, I would advise patience. In 3 months 10B will close and if 6B is still there you can offer them 490K. Otherwise just pity the person who overpaid for it. In a year you may be pitying both the buyers of 10B and 6B if none of them is you.
You can't buy data points, you can only buy apartments. If you have knowledge that causes you to believe 6B is "worth" less than $550K, and the sellers believe it is worth $575K.. move on. One of the themes of my book is that there is ALWAYS another apartment, and there is.
ali r.
the book: tinyurl.com/2ag28z
Good feedback - thanks. I think patience is my best strategy for now. Doesn't lower the stress level though!