I sure hope it is!
Routinely in a real estate brokers carreer, we are asked to perform BMA’s and BPO’s for lenders and relocation companies for their clients. These reports establish value on real estate given the state of the market, economy, inventory, financing options, etc…Often these requests are made with a stipulation that the owners ideas of value are to be…overlooked. This is to insure that a true and just value is obtained without outside influences…Doing so can and usually is difficult.
In relocation circumstances, we often meet the owners (transferees) and they “show” us their home…To build its value to us as they know (or believe) the higher the value the better their “benefit package” may become.
I recently went out to do a relocation ordered BMA on a home in…Lets say Miramar, Florida. The owners had just purchased the home 15 months ago not expecting to be moving so quickly. The market has continued to decline just a bit over the past year or so but NOT to the degree it had in years past. The last 12-16 months showed a drop of about 7% while in years past…12-18% per year was possible! The subject was purchased for $420,000 and the owners “hope to break even” on the relocation sale…A sale they asked for…They WANTED to relocate. A thourough walk around proved the owners did nothing to increase the value of the home, other that a coat of paint.
My suggested (90 day sales figure) list price on the home was $389,000 which made good sense related to recent sales comps and looked good compared to those listed around it although that has no bearing on value of course. I just see this morning that the sellers have already listed the home with a competiotor…BMA’s and BPO’s are always ordered in pairs, they are “competitive opportunities”. This competitor listed the home at $2000 OVER what the sellers had paid nearly a year and a half ago!? What!?
That’s called “buying the listing” when an agent inflates the list price to win the sellers business…Next in line will be a series of price reductions and a seller who is…Long gone and could care less anyway. The agent who overstated the home’s market value will make money at some point…An I will not (on this home anyway)
I run my business the way I want others to deal with me…HONESTLY and fairly. Being a true professional I believe in coaching and guiding sellers and buyers to arrive at the desired and likely outcome as dictated by sales…Not hype and hope.
I’ll update you on the first price reduction and those that follow…On the question posed in today’s blog heading…YES! It is! For The Chenore Real Estate Group anyway……………