Market Conditions: Over Reaching Sellers Reach All-Time High North of Montana
Due to the lack of inventory North of Montana, sellers think they can get 15-20 percent over any comp North of Montana for a single family residence.
Here is an example of such a seller: Two home sellers North of Montana, Tommy Talks and Lila Looney were approached that agents had a buyer for their home and could pay up to $5 million for the right kind of house. The house was shown to the buyers and an offer was written. During the presentation of the offer, the sellers who had previously confirmed they would accept $4.5 million net for their home said to the agents during the presentation that their net was now $4.75 million because he they believe the market price didn’t apply to them due to low inventory.
The agents being completely sandbagged and surprised by the seller new found avarice proceeded to show them all comps and inform them of other homes in escrow that are similar in age, style and square footage. The seller would not listen to any fact or reason even though they were provided all comps The sellers were given an opportunity by the agents to make $450,000 above any comp now or in the immediate future for their house because the buyers desperately need to buy a house.
The sellers refused the offer and in doing so has left close to a half a million dollars on the table not to be recaptured in the next 6 year cycle.
In 25 years of selling houses North of Montana I have not seen this kind of over reaching or insanity as we are witnessing in 2014. One can expect that while the market is up it is just a cycle and what goes up does comes down. In real estate a good practice is to know when someone offers you an obscene amount of money for your house — profit take!