Desperate Realtor tactics on display via Redfin.com

[Slimprofits]

From the Healdsburg Housing Bubble blog (good local coverage of real estate in Sonoma County - one of the subprime and Alt-A capitals in Northern California):

WEDNESDAY, JANUARY 7, 2009

1720 Canyon Run



An article in the Wall Street Journal a few days back from the perspective of first-time buyers in Chicago had an interesting comment on realtor tactics:

Time and again, we saw agents trying to avoid slashing prices. Thanks to Redfin's Web site, we could see when listing agents pulled units off the market and relisted them two days later at the same price, trying to make it look like a new listing.

Apparently this tactic is alive and well in Healdsburg. Today, 1720 Canyon Run listed a price cut on Redfin’s website to $445,900.

But take a look at the history of this listing over the last 6 months (click to enlarge):



Strange to say the least.

[metalman]

Re: Desperate Realtor tactics on display via Redfin.com

Strange to say the least.

not so strange. on the market in june 08 for $596k... cut, cut, cut to $379k over 6 months... relist and try again starting not at $596k but near the midpoint of the last series for price reductions, $450k. it'll be cut, cut, cut to, what, $290k before it sells? depends on jobs in the area.

[zoog]

Re: Desperate Realtor tactics on display via Redfin.com

Thanks to Redfin's Web site, we could see when listing agents pulled units off the market and relisted them two days later at the same price, trying to make it look like a new listing.

not so strange. on the market in june 08 for $596k... cut, cut, cut to $379k over 6 months... relist and try again starting not at $596k but near the midpoint of the last series for price reductions, $450k. it'll be cut, cut, cut to, what, $290k before it sells? depends on jobs in the area.

Last summer the Portland area RMLS added Total Market Time to the database that realtors have access to. It keeps on ticking even if the property is relisted. Presumably the change has clamped down somewhat on the bait-and-switch relisting trick. To stop the clock, the property has to be off the market for 31 days before relisting.

[metalman]

Re: Desperate Realtor tactics on display via Redfin.com

Last summer the Portland area RMLS added Total Market Time to the database that realtors have access to. It keeps on ticking even if the property is relisted. Presumably the change has clamped down somewhat on the bait-and-switch relisting trick. To stop the clock, the property has to be off the market for 31 days before relisting.

give it a few years. this will all be forgotten. the housing market is dead. the way they don't wind up like this....



is the gov't buys them.

[Slimprofits]

Re: Desperate Realtor tactics on display via Redfin.com

not so strange. on the market in june 08 for $596k... cut, cut, cut to $379k over 6 months... relist and try again starting not at $596k but near the midpoint of the last series for price reductions, $450k. it'll be cut, cut, cut to, what, $290k before it sells? depends on jobs in the area.

I agree not strange, I think the author of the Healdsburg bubble blog isn't as much as a realist (doomer?) as you or I. There are very few jobs in the area, unless one has connections to a winery. Sonoma County economic growth over the last decade has been derived almost entirely from wine and coastal tourism, wine exports and the housing bubble. The drive to San Francisco, Silicon Valley or to the East Bay is too far for a 5-day-per week commute.

Healdsburg is a California fantasy land as far as I can tell. The locals describe it as a tiny farming community until about ten years ago.

[don]

Re: Desperate Realtor tactics on display via Redfin.com

Healdsburg Tidbit:The town square park is one of the few landmarks that has escaped gentrification. In 1920, three desperadoes were busted out of the Santa Rosa jail and strung up in a nearby cemetery. The lynch mob then drove north to Healdsburg, discarding their white masks along the way, and partied in that park till dawn. Standing in that park today, and thinking of that night, is the highlight of visiting Healdsburg for me

[swgprop]

Re: Desperate Realtor tactics on display via Redfin.com

The property is in foreclosure, trustee's sale was scheduled for December, now postponed to January 20. The outstanding balance with the lender is in excess of $490K, so whatever the list price, anything under 500K is going to result in a short sale and require lender acquiescence. Lender involvement may have contributed to the abnormal pricing history.

Tuesday 1/20/2009 11:30:00 AM

Address: 1720 Canyon Run City: HEALDSBURG State: CA Zip: 95448 County: Sonoma APN: 003-130-020-000

Sale Status: Postponed to 01/20/2009 11:30 am (Mutual Agreement) TS Number: 427052CA ASAP Number: 2913352 Notice of Sale Amt: $492,821.93 Opening Bid Amt: 0 Sold Amt: 0 Sale Location: At the Administration Drive entrance to the Administration Building, 575 Administration Drive, Santa Rosa, CA. Trustee: California Reconveyance Company Trustee Phone#: (800)892-6902

[LorenS]

Re: Desperate Realtor tactics on display via Redfin.com

Here's a desperate realtor tactic. We were looking at a pretty nice house, but it had some expensive deferred maintenance issues. Our realtor wanted us to put an offer on the table and then deal with the maintenance issues after the inspection.

Now that we've had the inspection there were so many issues identified that she only wants us to ask for compensation for the issues we didn't see at first. For example the window trim is peeling paint and showing bare wood. We're not supposed to ask the seller to fix this because we saw it before we made the offer. We think that it's maintenance that should have been done all along, the inspection calls it out and we want it fixed.

[jk]

Re: Desperate Realtor tactics on display via Redfin.com

Here's a desperate realtor tactic. We were looking at a pretty nice house, but it had some expensive deferred maintenance issues. Our realtor wanted us to put an offer on the table and then deal with the maintenance issues after the inspection.

Now that we've had the inspection there were so many issues identified that she only wants us to ask for compensation for the issues we didn't see at first. For example the window trim is peeling paint and showing bare wood. We're not supposed to ask the seller to fix this because we saw it before we made the offer. We think that it's maintenance that should have been done all along, the inspection calls it out and we want it fixed.

the realtor's only interest is getting a sale done. she'll suggest any "strategy" she thinks increases the odds of a deal getting consummated and her getting paid her m cut. if that means convincing you to pay more, so much the better. [bigger cut]

[jtabeb]

Re: Desperate Realtor tactics on display via Redfin.com

Here's a desperate realtor tactic. We were looking at a pretty nice house, but it had some expensive deferred maintenance issues. Our realtor wanted us to put an offer on the table and then deal with the maintenance issues after the inspection.

Now that we've had the inspection there were so many issues identified that she only wants us to ask for compensation for the issues we didn't see at first. For example the window trim is peeling paint and showing bare wood. We're not supposed to ask the seller to fix this because we saw it before we made the offer. We think that it's maintenance that should have been done all along, the inspection calls it out and we want it fixed.

RUN, don't walk, away from your realtor.

[don]

Re: Desperate Realtor tactics on display via Redfin.com

A happy outcome of the collapsing bubble would be for realtors to join travel agents in relevancy and pay scale. Who hasn't been hosed by FIRE's minions.

[cjppjc]

Re: Desperate Realtor tactics on display via Redfin.com

RUN, don't walk, away from your realtor.

Agree......

[cjppjc]

Re: Desperate Realtor tactics on display via Redfin.com

A happy outcome of the collapsing bubble would be for realtors to join travel agents in relevancy and pay scale. Who hasn't been hosed by FIRE's minions.

Hey. You would be amazed how little most real estate agents make.(Realtor is a designation. Not a job description) Agents provide lots of services most people take for granted. You have no idea how much help a good, honest agent can be. To both a buyer and seller. To anyone reading this thread, if you feel your agent is not honest, get another one. Just as you would any person performing a service for you.

[cjppjc]

Re: Desperate Realtor tactics on display via Redfin.com

Here's a desperate realtor tactic. We were looking at a pretty nice house, but it had some expensive deferred maintenance issues. Our realtor wanted us to put an offer on the table and then deal with the maintenance issues after the inspection.

Now that we've had the inspection there were so many issues identified that she only wants us to ask for compensation for the issues we didn't see at first. For example the window trim is peeling paint and showing bare wood. We're not supposed to ask the seller to fix this because we saw it before we made the offer. We think that it's maintenance that should have been done all along, the inspection calls it out and we want it fixed.

Always best to go over how you want to deal with home inspection issues before looking at houses. Some people really don't care about anything other than major issues. You were given bad advise. In your situation, if the house was not priced for the deferred maintenance your offer should have reflected that. Keep in mind you can't expect to reduce the price paid to the seller by the total amount it will take to remediate the deferred maintenance. That's what new construction is for.

It's a buyers market. Get another agent. Explain what happened in the first transaction. Go shopping again.

[Sharky]

Re: Desperate Realtor tactics on display via Redfin.com

Foreclosure or not, the owner looks desperate. It's a very bad idea to decrease price by less than 10% or more often than once a month. All that does is make potential buyers think if they just wait a few weeks, they'll get a better price. Bigger price reductions done less often are much more effective.

I think many agents play the re-list game. We did that when we sold our last house in 2006. The idea was to reset the clock from when the listing was considered new, in order to get other agents interested. Newly listed properties are always much more interesting than old ones. We did keep the house off the market for 6 weeks or so, though, and when we put it back on, it was at a price below where we took it off. It worked -- the house sold quickly after that.