BEFORE YOU SAY NO TO A DEAL READ THIS EMAIL!

This is an email that we sent to our 5 offers. These offers were received over the weekend. After some of the less than enthusiastic responses we received we wanted to give our clients more information on how to deal with offers. Here is our email below.





Barb and I have been busy. In the last five days we have presented 5 offers.



All of you who have received these offers have something in common: You have recently had some major changes in your life. This includes divorce, the death of a loved one, health issues, or other factors.



The offers we presented to all of you have been met with great senses of disappointment, frustration, and in some cases, anger. The first point from Barb and I is this: Don’t shoot the messenger! In our opinion every offer is a starting point.



Before you counter these offers I want to offer another way to look at them. This is as a result of my recent experience with the sale of a family condo in Florida.



• A condo was purchased in Florida in 2007 by my family and my parents

• The down payment was from the profit of our previously sold condo and some inheritance money

• We purchased the condo to enjoy not as an investment

• In 5 years the price declined 50% !!!!!

• We sold the condo at the end of 2011, and went to closing with a very large amount of cash!



How did we arrive at the conclusion that we had to sell at such a large loss!

• Family-My Dad had turned 80 and did not want to continue paying monthly payments!

• Recovery of funds! There was no possible way that the property would appreciate to the point where we would recover our investment

• Cost! There is always cost with operating the property that do not go away. This includes utilities, condo fees, repairs, and possible assessments!

• Better investment choices for the money! We could take the monthly payments, condo fees, and utility money and invest in areas where we would receive a higher return.

• We had to be honest about the situation and make a hard decision.



According to the National Association of Realtors, the average home price in the South went up 1.8% over the past year (median home price is $138,100).



Take the price of the offer that was presented on your home. Now increase the value of the offer 1.8% a year. Take that value, subtract HOA dues,taxes,maintenance,and utilities. Now look at how much more money you would gain by waiting another year to sell the home.



Example: Home offer of $350,000 in our neighborhood Chestatee



Year 2013 Home is worth $356,300 (1.8% price increase)



Cost of running the home for year 2013: $1000 HOA dues, $1200 in lawn maintenance, $1200 for utilities, $378 for higher real estate commission, and??? for repairs.



Your net increase is $2522 (assuming no repairs)



I ran the same numbers on our condo. I let it go up 2.5% a year, figured in the operating cost, and came to this conclusion. Not only did I not make any of our loss, in year 4, I started to lose even more money!



There are a few things Barb and I have learned in 7 year of real estate.

• We do not control the market

• Real estate is very emotional for both the buyer and seller

• Life changes (jobs, marriage ,kids, divorce, job change, retirement) despite the market

• There are times when you have to do a thorough analysis of your situation using numbers not emotion!