Can you believe this crazy real estate market? How did we get to this point? Everyone is at a stand-still…and each side is waiting for the other to crumble! Both Buyer and Seller are refusing to accept the other’s position. No wonder deals are not happening!
How I long for the days of the not so distant past when inventory was low, demand was high, and homes were not on the market for very long. Buyers were anxious to purchase their South Florida dream home, and felt confident and elated in their purchase. Our Sellers were getting stratospheric prices for their homes and laughing, skipping and nearly pinching themselves all the way to the bank. Realtors were superstars! These days not so much, no matter how hard we work, no matter how much we do, we are told we can’t do anything right! How quickly they turn on us. Boy! Talk about a 180.
That is why Realtors, Buyers and Sellers have to come up with new innovative ways of getting a deal done. This week I was pleased to receive from one of our loyal subscribers a great article from the New York Times, written by Ron Lieber, on what might be the “new tactic” from Buyers and Sellers trying to at least get a deal started. After reading the article, I came to the conclusion that these days it’s not all “Dollars & Cents” that will get you to the closing table. It is all about “Wooing the Other Side”. Go figure? Love Letters they call them (I personally would say they are letters with a lot less love written into them and a little more of a bitter dose of reality). I am talking about a letter addressed to either side delivered by the Realtor, to start a dialogue!
Buyers these days have to finesse the Seller, plead their case by complimenting the sellers’ home but also stating the cold hard facts of the current market and the dreary news of what is yet to come. Sellers on the other hand, have to respond to these so called “Dear Seller Letters” with a lot of restraint, be gingerly in their use of words, respond strategically to keep their potential Buyer interested without scaring them away from the deal and appearing not to look as uninformed, unrealistic, stubborn people.
So, Philip and I have decided that this might be the most effective tool when submitting an offer. The Realtors always get yelled at when the Seller sees a low offer. People don’t shoot the messenger! We suggest you read the letter…see why the Buyer put in the offer at that number, listen to their reasoning. Let the letter speak for itself. The Sellers then should respond with their counterpoints and suggestions. Who knows? Maybe, just maybe…when everyone is miserable, moody and agitated and both sides give in and compromise a little…we all just might have a deal!
Please view The New York Times article (05/31/08) : http://www.nytimes.com/2008/05/31/business/yourmoney/31money.html?_r=3&ref=business&pagewanted=all&oref=slogin
View our website: www.LuxuryResortPortfolio.com
All information is derived from the Palm Beach County Property Appraisers website and the MLS.