We have several investors who are looking to buy some mult-family buildings and I began to peruse the listings in the locations they had chosen. I did the math and looked at the rents...when they were given...and asked for expenses beyond the taxes....(amazing some "listing agents" don't know what falls into the expense category.)
When I pointed out to several listing agents that there was no cash flow for an investor...or next to none even with 25-30% down....several listing agents said..."Well, of course that's not the REAL Price." Seems all of the multi-family sellers don't want the "real price" in MLS because they know that the buyer will just offer a lower one. Did you forget Ms/Mr. Listing Agent that the seller can choose...you can negotiate...if you have started at toooo high a list price...are buyers and agents supposed to get out their crystal balls to determine what price you will REALLY sell at ? Are you missing the market ? YOU BET your security deposits you are !
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
Sally & David -- If listings were priced at their "real price" the state of the real estate market (and the economy) would improve. I posted on this same issue.
I also have an investor ready to make an offer on an investment property with a price plucked from a wish list.
Yeah, multifamily, single family, I don't understand the logic in chasing the market down. Greg
Sally & David,
Some agents' logic escape me or is there any logic?
I am sure they use the "slow market" line on the sellers...when they are in fact, a large part of the big STOP sign slowing it all down...