I experienced recently the kiss of death. I got greedy and decided to price my rehab at about 20% higher than fair market price. I ended up having to rented and will hold long term but the lesson was valuable. Thanks for the video Phil.
This presentation is sooo true. I had a property on the market for $249K. 2 days later I got an offer of $237,400 all cash. I thought I'll wait for more offers since we got an offer so quick. 120 days later we never received another offer. Likewise when I sold my condo, I accepted the first offeror's offer, and made a great profit and that was only on the market for 4 days.. Phil knows his stuff..
My husband and his family they're all Masons also they all do concrete Flagstone they build waterfalls they build a fire pit they do everything you can think of when it comes to Mason that would be a big plus even if it was just to help you guys
As a retired Realtor, you are so on target! I've had to give many clients a quick reality check. The quickest I ever sold a house was 14 hours. I did Sat-Sun open houses and timed the listing to hit the update sheet on Sat morning. No appointment needed! It worked! Take down as many "barriers" as possible, get as many people through as possible. And I wasn't afraid to turn down an overpriced listing either. They'll only blame the lack of a sale on you anyway!
I am selling my house, I just interviewed one realtor yesterday, he was the one to star high price late lower price. Thank God! I found you!!Such precious knowledge, I really appreciate you !🙏subscribe you!!👍
Alright Phil, I've been in real estate since '97 and have recently watched some of your videos. You my friend share the truth and don't mess around. Kudos!
Your goal is to *sell* and the first offerer is explicitly telling you they *want to buy*... counter-offer or not, egads, sell them your house and move on. Unless you're underwater, you can likely sell noticeably below your asking price and financially have a net effect that you ended up "renting/leasing" a house you enjoyed at a reasonable rate - sell, move on with your life, and be happy.
that is very informative, thanks! we are going to sell our house by the end of the year and it is going to be our first time! i can tell when you talk there are thousands of things popping up on your mind so I appreciate how precious these info are for average people like me because of the way you end up wrapping this up so preciously : ) it does make sense!
Phil...you are so right with the first offeror being usually the best. We listed our house at a price based on comps sold in our neighborhood. We staged the house by removing the clutter. On our first open house 5 people came to see it. The first offeror was also the first of the five visitors on open house day. We ended up selling the house in 4 days to the first offeror at a price close to asking price! i CAN ONLY AGREE WITH YOU IN ALL THE POINTS YOU MADE IN THIS VIDEO... Do not price too high above the comps, and we ended up with a DOM of 4 days after working with the first offeror.
You're right Phil. I wish I knew this before I sold my first flip. I made all the mistakes you've mentioned here on my first flip. First I listed it at $235k where the more reasonable sales price was $215k. It sat on the market for about 120 days, and during that time I dropped the price by $5k less until I was at about $210k. Then I get an offer at $210k (full asking price) with a conventional loan to close in 30 days or less but with much higher closing help. The next day I got another offer for $220k, and out of greed, I turned down the first offer and went for the second. Very bad move. It took nearly 3 months for this second buyer's lousy bank to close on this deal, thus holding me up for too long. Like you said, it turns out that the first offeror had been looking and waiting for months for a house like mine to come on the market and even was on standby in case the second buyer is unable to close on the property. Had I gone with the first buyer, I would probably have been done in 30 days (conventional loan) instead of 78 days with the second buyer (FHA loan). I learned the hard way. I love your videos and great sense of humor. Thanks for the advice!
Phil : I just happen to see your videos and very impressed with your honesty, and appreciate what you do, thank you very much for your knowledge and experience, your on my subscribed list, and look forward to many more.
I learned this first hand before becoming a RE Agent! I am an agent that brings my experience to the table to help my clients. Perhaps not all agents have the personal experience, but many do and we use all that we have to be a trusted real estate Advisor for our clients.
Phil, This was the 1st video I watched, and initially I was skeptical but watched till the end. You're seem very down to earth and a great mentor. I will go look for more of your videos. I am just now getting ready to put my home on the market and starting to realize that hiring an experienced agent is probably a good thing. I'd hate to see my DOM increase as you talked about. I hope to sell it in a week or less. I am now leaning more toward hiring that agent who I've been talking with. I'm old school and retired, but not interested in holding on to this place very long once I pull the trigger on selling. I want to move on... Great video... Roger
I ran across one of your videos last night and I was so impressed/informed that I've probably watched all of them in the last twenty four hours. I'm about to invest in my first property and I just want to avoid as many mistakes as I can. Than you
That was really helpful. When you first put your house on the market, there are people who have been searching for a while. They see your new listing and immediately bid. If you pass them all up, then you are left with new buyers dribbling in and the backlog of buyers is gone. No competition, and who knows how long that may take. In fact, I can remember my own process buying a place. I saw a listing, knew the market cold and made a low but decent offer. Owner gave a high counteroffer. I passed, didn't even make another bid, and looked elsewhere. Weeks later, I found another place, made a low but reasonable offer. Owner counteroffered a bit above me but reasonable. I took it - no negotiating, it was what I wanted - and still own the property 25 years later. Best deal I ever made.
I'm scared... my open house is in a week. The only big thing I have going for me is a very small Denver inventory. I just want to sell quickly and move on with my life. Very good advice.
I am just a guy with a passion for investing in property,The best thing about what this guy is saying that it makes perfect sense,The way Mr.Pustejovsky explains his points is the clearest I heard-Its like listening to Morgan Freeman... THANKS DUDE!!!
Phil this is a very educational video for me. A lot of realtors use that start high and can always come down strategy. Another problem we've had is they like to get a contract but they don't push it.
Glad I watched this, I have always questioned the fact I accepted the first offer and quickly on a property that I flipped. This makes me feel I made the right choice.
Pure gold. As a new agent I thought it was a 'wives tail' to say "the first offerer is the best". It's so true very often. Phil touched on the reason. The first buyer with a offer has usually seen all the competing inventory of homes, they know what they want and they know a good price. They took it upon themselves to beat every other buyer. They usually won't go through all that trouble just to low ball. If they made sure to view the house on a Tuesday and write an offer, they are more serious than the casual buyers who "may go see it this weekend".
I have a corollary to your video. As a potential buyer, I love it when I see 100 (or sometimes much more) days on market. Like the stock market, sometimes the price of a stock crashes for reasons unrelated to its underlying value. But I think it's easier to figure out why a property has been on the market for a long time than to figure out why a stock crashed (unless the obvious, like bankruptcy, etc is apparent). And I am talking about multi family, not SFR's here. Great, concise video as usual.
Thank you so much for the information in this video! As a new REALTOR, I will be ready for the next client that insists on listing way too high right out of the gate. My first listing was 63 DOM. That's not horrible but, if we would have listed where I suggested initially, we could have been closed within that amount of time. Now I know how to have the conversation about pricing to sell. I look forward to watching your other videos.
This is excellent general advice. Having said that, there is no substitute for intimate knowledge of the market. General principles may apply differently on a cold market vs a hot market, or depending on type of neighborhood, price point, inventory, demand, etc.
Good video. I sold my house within two weeks employing these factors, you really speak the truth. Unfortunately sometimes sellers don't want to hear the truth. It comes down to,finding an agent you can work with and understanding they are your partner in selling your house so listen to them when they give advice.
A lot of good, quite good information, straight forward, and easy to understand tips on housing real estate marketing. We`re into more commercial, industrial properties, and even have an ex saw-mill, an ex- mine, and even 197 lots of virgin lakes-forest-hills project near a major highway, all here in southern Quebec market, (And have to operate in two languages). So it`s all a bit over-complicated. BUT the buy-sell psychology is still-basiclly- the same. Good work Phil.
First offerer is best because they likely have been in the market for a while and so their approach to your property is an educated approach and they are ready to buy!
Thanks Phil...I'm educating myself from great videos like yours. I'm right there about to choose a realtor (listing agent) and I want to "get it right the first time."
Although I'm NOT a real estate investor WITH Phil. P it. Makes alot of SENSE to WHAT he says on his VIDEO'S I. Apply his advice on deals I. Make involving MONEY or. Finances great work Phil I. REALLY like YOU'RE resonating on it THANK YOU VERY much God bless
Very helpful, thank you. I've been fortunate in personal property transactions, guilty of overbidding in a hot market albeit selling £30k up 2.5 years later so no disaster. Luckily avoided the peak frenzy leading up to 2008 before the crash too. Currently planning to sell my house and merge with Mr Right, so in no hurry. But you are right, a house that don't sell quickly makes people wonder what's wrong with it. I know what houses in my area fetch and you remind me not to be greedy. I see one in a nearby street now changed to fixed price (the usual is offers over), sitting there since September last year. That looks desperate and I would make a cheeky offer on such a property to see if they'd bite.
YUP!!! One realtor told me that once the house is on the market more than 30 days, people wouldn't even choose to tour that house since there MUST be a reason why it is not pending after 30 days :) Smarter buyer will go after those properties and scoop em up.
Love your positive energy Phil! And you just made me feel better because we recently sold a secondary house to the first offer(or) just to get rid of it and move back to primary residence in our home state, but ever since I have been tracking sales in our former neighborhood because I felt like we may have walked away from money by selling so quickly.
I am a seller. I wonder how pricing issues and DoM apply when selling a premium property. We have done two professional evaluation of the property, we have talked to some of our target buyers (which happened to buy 2 weeks prior to advertising our property- I know, we might have lost our buyer). We also talked to and offered a visit to prospective real estate agents, which confirmed prices. We understand our listing price might be higher than what is on the market, but the house is definitely not in the same market. 21 days have gone, and only one couple visited the house (and seemed interested, but their own house is not sold yet) As well, DoM is often higher due to a smaller number of buyers. Average selling price in our neighborhood is 101 days, and average house price is about 100k below ours. It is certain that if we advertise our house 100k below, we will attract a lot of buyers that are interested with comparaison, but may not be able to affort our house. I am kind of conflicted about this. Your take?
we are in the same situation. Most houses sell here for avg.200K and we are in expensive exclusive neighborhood priced at 500K+ . Not many qualified buyers here for these properties ..
Omg as a Realtor I feel so validated by this video. You started to mention it but if it's priced to low then there will be a biding war and the price automatically goes up quickly.. The first is best has been true of all my listings. I sometimes would second guess myself thinking I should work on negotiating techniques but realtors usually negotiate through other realtors and negotiating won't circumvent the psychology. This is true of buying also. Most of my buyers end up buying the first place or wishing they would have. I always suggest to see the best place that fits their needs and is the best deal first. Then it's all downhill. And I constantly remind them with sarcasm while touring the subpar - "oh, gee wiz this sure is sooo pretty. I wonder who's touring the best place on the market for you right now? Damit!!" LOL!!
Fantastic & eye Opener. It changed my prospective of "Start Higher". The First Offer is the best offer? make sense. Just sell the property and walk out. I love this.
I have found it also depends upon the price bracket your home is selling as to how long it might be on the market. The buyer pool is greater in a 250-300K versus a house that is priced 600K or higher. I have purchased and sold ten homes, so I have learned about realtors, and have fired quite a few. You want a realtor that will be flat out honest, will show you the numbers and put those numbers down on paper. You might not want to hear it, but you need to. If not, you will be wasting a lot of time. You also have to keep your thumb down on your realtor because they will generally list it, and if it sells, well it sells. You need a realtor that will market your home (this is key) and keep you apprised regularly. You have to know what the market is at the time you are listing. buyers or sellers. This will dictate a lot. I received an offer on my previous house and did not want to accept it. At that time it was a buyers market and they were asking for the moon. My realtor sat down and did the numbers and showed me what I would get out of the property at that time, and what I could get out of the property if I waited for another offer - which might not come. Sure I could have waited, but in the meantime I am still paying the mortgage and the utilities and waiting I might have lost out on what I was going to get initially. Does that make sense? Do not waste your time holding an open house. They are not for the buyer but for the realtor to garner leads. You are being inconvenienced for your realtor's gain. -and generally the first offer is the best offer. My neighbor turned down a first offer for 525K because she said she had too much in her house. I told her that she can't think that way. You are decorating and or changing your house for you, and your pleasure and sometimes you won't recoup those costs. That is just the way it is. She did sell it about 6 months later for 475K. The number you need to look at is the bottom line, what you are going to come out with. Be smart.
Great Video Phil its definitely true.. its actually happening to one of my family members. I love you videos, Ive seen all of them and I can't wait to know more about Real State investing.
Great video Phil, wish I watched it last month. I just reduced the selling price from $799k to $749k, house is on historic district where not many homes are new so not many comps to support it, I renovated the inside like brand new. it has been 30 days about 80 people came to look but not 1 offer, should I have the realtor pull it and relist at lower price again? or just keep reducing it by another $50k until price meets market? realtor says the listing has to be off market for 30 days for it to be refresh.
Roller Rock Pull it and relist it as a brand new listing. But with 80 showings, you should have demanded feedback from everyone of them, and if you did that, you would know exactly what changes would need to be made to sell it. 80 different buyers into one home and it not sell is crazy. never heard of such a thing.
My last home generated multiple offers, but my agent wasted so much time with the first offer, which began demanding ridiculous things, that the others were never contacted. Seriously, a lost opportunity. That first offeror manipulated him crazy. She wanted all kinds of handicapped features installed by me at my cost, upgrades to the pool, a security system... At my cost! I said "no way!" And my Realtor argued with me. "Your first offer is your best" was bullsh*t. I fired him and sold it for much more a year later. Some agents are idiots, get away from them as fast as you can. I bought the house I own now without an agent. Gave the sellers what they wanted and didn't Dick around. It's the best home I've ever had. Thinking outside the box can pay off. Patience is a powerful thing. Waiting until the optimum time to list at the price you want is a great strategy if time is not an issue. As long as you understand that the price of your next purchase will likely go up as well. I spent months being homeless, couch surfing until the house I wanted came up. It worked for me, just required a bit of sacrifice.
have to respectfully disagree. you paid mortgage+ tax for a year on an empty house. Also time is usually an issue when you have a family. For some many of us, being homeless is not an option. Also I believe what Phil meant was the initial offers ( plural) are the best.
How is it your agent's fault that a prospective Buyer kept throwing weird offer contingencies at them? Ethically they have to communicate and deal with all offers and give you each offer and explain each detail. You sound like a difficult person who blames others and have no respect for your agent having to deal with nonsense.
With my first house, my first offer was a low ball offer. I knew this because I visited many open houses in the area and that offer was well below houses in the area. I'm very glad I did not make a counter offer with that person. A week later, we had and open house and there were a series of people coming in which clearly made the people panic and we had 3 offers the next day for the asking price. Moral is, know what your house is worth. Look at it analytically, not what it is worth to you.
As a future seller I am sensitive to this as well. I have watched the market in my area for over a year using Zillow, Realtor, and Redfin. Its market dependent. Hard to believe in this housing market, but large sections of Long Island still in a depressed housing market, so my research suggests most houses have days on market exceeding 120 days. Definitely a buyers market, and still many sellers underwater from 2004. So now what? Do we really want to give away our homes? A neighbor put 125K a few years ago , into a legal apartment. Not a chance she will see that money back. And of course property tax runs high, so yes sitting on a property is costly.
Another factor that needs to be addressed.... how many months of inventory in the price range within the market? .... if less than 3 months you are in a sellers market. If greater than 9 months you are in a buyers market. Sellers market allows you to price the house on the higher side of comps..... buyers market forces you to price the home on the lower side of comps..
We are the ones on the other side, who look out for the properties that have been on the market long. We know we are usually getting a good deal because of it. But still do your research!
Phil You are Just Brilliant! I love and admire your teachings so clear and amazing! God bless you dear brother and all those you love. May your light always shine and may we be blessed more to implement what you teach us and use that knowledge to bring nothing but bliss to all of humanity!
Haven't seen someone this passionate about Real Estate, and I love your videos! All that knowledge gets me excited. I just got my real estate license and would love to start flipping houses as well as assisting people as an agent. I know very little about the business, but what is your opinion about my case? Thank you.
I worded that poorly, sorry. What would be the best ways to start investing and does having a license make a big difference? In class I was taught about the laws and rules, not too much about investment strategies.
I've always felt that residential real estate people want to set the prices low so as to get a quick sale (and quick commission) and move on to the next sale for another quick commission. Higher sales prices don't get them but a few dollars more for getting slower sales. Fast sales are far more lucrative. So, while what is being said here does make sense, I just don't trust real estate people. Mostly that 6% or 7% commission is an unjustified rip-off.
Agents work for weeks to sell a home and spend a lot of money. You sound stupid calling professionals a "rip off". I am sure you are a typical seller who thinks your ugly home is worth more than others. You sound jealous that agents work hard and make a good income. And clearly, you have no idea at all the time and effort that is spent to sell homes. Do us a favor, stop calling licensed professionals "RIP offs". You're rude and uneducated.
Great vid. A coworker is currently making ALL these mistakes. They're greedy greedy greedy, trying to sell a $340-$350 home for $377k. Far overpriced for neighborhood. 90+ DOM when avg for area is 30-50 days Had ONE offer for $350k, countered $365k and offerer bailed. Still waiting. Showings are all lookie-Loos. Accurately priced homes are selling, lower & higher ranges.
Phil, I personally just went through this exact scenario. I really needed to make 425k on a house flip... I agreed to let agent list for 459k he "didnt want to leave any money on the table" . It sat on the spring, summer, and fall market... We dropped the price to 439, then got desperate late in fall and dropped to 399k. Then before christmas took it off because no interest. I added more value with a basement development.... changed agents... relisted for 419k. It sold in a week for 415k. You know how much that deal lost me with carrying costs, etc. We arent even talking about lost opportunity costs having so much tied up in a property..... Learned this the hard way wished I found your videos earlier.... They are a bonanza of information for a 25 year contractor and real estate investor. Oye
Great information! Thanks for sharing. Valuable info will always help even if this video was post 5 years ago, because they are timeless. One side question for Phil: how about price for rent? Can I list low, and get multiple offers, and let them bid? (Actually, I seldom see this happen in reality). Or should I list with market price? What if I don't know the market price, can I list high, and reduce the price if no offer comes? For example: my neighborhood, half condo, half single family. Lots of condo for rent, but almost no single family on the rental market, no comp data available. No sure should I based off condo price, or based off the ideal price in my mind. Many thanks.
We haven't found that pricing a rental rate lower creates the same multiple-offer-situation dynamic whereby the interested parties are willing to bid the price up. But you certainly could try it. Worth a test.
This is an Excellent Video Phil...... I would say that this is probaly one of the most Important video's that an Investor can have and also knowledge that would be effective If Applied. I Love the line about having it on the tablet of your heart. Habakkuk. Thank You for sharing.
Hey Phil thank you so much for taking the time to make these videos I've been soaking it up like a sponge it has really made it seem possible for an average guy to do real estate. Quick question if you do a subject to.. can the person go out and get another home loan or do they have to wait for you to pay off the remaining loan.
I found work with that first offer is much like your first job offer once you graduate. Dont haggle, take the job you dont know when the next offer may come. I lost a really good job because I haggled myself out of the job. Then didnt have any offer near as good after. Only one offer after and it was just a bad work sight in every word.
Great video. How many days on the market do you consider to be too many for a home? In other words, at what point has it reached the kiss of death? Thanks!
Phil I"m a bit confused with something. In a few videos I've seen you talk about pricing the property low enough to sell it and in many instances even create a multiple-bid situation. But then the follow on "rule" is that the first offeror (or first offer) is usually the best. To me that seems counter-intuitive. If your first offeror is the best then it's typically not wise to wait for additional bids, hence you end up selling to that first offeror at a price below what you could have potentially sold for; i.e. you priced it too low and now you are stuck with that first offer. Hope that makes sense. I understand completely how pricing is so critical but not sure I understand this particular dichotomy. Please clarify. Tks
The multiple offers push the first offeror up until they make the highest possible offer they would ever make. It works so well. We apply this method several times per day across America. It makes us a fortune.
Phil, I really enjoy your videos and they are very informative. I have a quick question, with thanksgiving and Christmas holidays coming soon do u think it’s better to wait until after the holidays to list a second home? Because I feel the holidays are a slow time for buying a house. Thank u
A quick nickel is better than a slow dime. You must get a great deal before you can offer a great deal. If your property is sleeping on the market, then it is not a great deal. Most buyers are reluctant to offer what they think the property is worth, because they don't want to offend the seller. The real insult is viewing a property that fits your criteria and not making an offer, because that is saying the property is not worth buying at any price.
I think time of year is important to a sale too, if it's in the cold winter months people might not be motivated as much as in the spring summer or fall. States with mild winters excluded from this example.
For the most part, that is not correct. Even in colder northern climates, there is still almost as many sales in December in January as there are in June and July. True, there is a slight increase in the summer months in most markets, but the difference is not statistically significant enough to change one's real estate re-selling plans.
I live in a rural area in Oregon and the houses don't sell fast out here. My Mother's estate has been on the market since July 2014, the down side is the Realtor started too high, but since the price has been dropped, there have been no offers except for 1 and the sale did not go through and I'm not sure why;I'm an Heir to this estate. Thanks for the information. I also want to sell my house, so will see how fast it sells, my house is in the same area as my Mother's estate.
Thanks Phil for the valuable information as usual. I am a real Estate Investor that is interested in wholesale but didn't sell my first house yet. I got a friend of mine that lives overseas who gave me Power of Attorney to sell their properties in the US. They are several houses, in Rochester, Cleveland, and Detroit. I live in DC. I wanted to put them on the market and was wondering if it is better to deal with a real estate agent to facilitate the deals or should I try finding end buyers myself and save the Realtor's commission. If I choose the second option, how and where do I list the properties? And if I have a power of Attorney from the seller, how do I put the properties under contract if I am representing them?
Phil, listed our home in June, very limited inventory in a high end home/acreage development. We accepted the first offeror as described in your video, pre approval letters in place, and then the buyers were denied the loan due to supposed credit issues that turned up. During contract the home was off market, went back on market at a lower price, received a cash offer, negotiated the final price, went through all inspections, well/septic, pest etc.., absolutely no issues with any, and now the cash buyer has backed out within the window (17days) and we have no recourse on the earnest. At this point, now our DOM is fast approaching 90. Would you suggest removing from market and relisting in a couple of months? Any suggestions?Very Frustrated!!!
Watch this video first: ruclips.net/video/RIowGqqEemM/видео.html Then, my suggestion would be to take it off the MLS; wait the period of time for it to reset to 0 days on market, then re-list.
hi phil , i live in venezuela and now there is an economic crisis alot of people are selling there houses and i realy think i can find some nice deals , the thing im worried is that most of the people here just want to leave and that there would not be many buyers or prices going down , ofc i have to buy as you said in one of youre vids within the margin to make the profit and protect myself but what about not much buyers couse of the crisis
This was very informative. It is a very good point, that when people are waiting for something they want to come on the market there is a sense of competitiveness and irrationality with the person being the first offeror. Thanks for saving em a lot of nonsense :)!!
Phil, superb video with priceless pearl of wisdom. Question. Wife and I want to start real estate investing, but really have no capital, and spread way too thin mentally and financially to try wholesaling to raise capital. So our options were to rent out our house, or sell. Without going into the pros/cons of each in our situation, we want sell. We have enough equity to pay off all debt and and then depending on what the sale price is, likely between 20 and 30k leftover to invest in single family rental property. So my question is, as it pertains to this video, is there anything wrong with first trying to sell it, but then if it does not sell in 2-4 weeks, to then just rent it out and start cashflowing? (it would cashflow very nicely, based on rent comps) I want to use this plan of attack, but don't know if I'm missing something with this strategy. Thank you so much.
Hi Phil, that all sounds wonderful but what do you suggest if I've paid off over half of the house? I was thinking that lease to own idea you mention sounded awesome! Please pick me as your apprentice. Application done! I'm eagerly awaiting :-)
what is you are not in a rush to sell your house? I be putting my home in the market soon but I am in no rush to sell so I will keep it in the market until the right person buys it.
If your not in a rush then, don't put the house on the market. Cause the longer it sits there the less desirable it becomes and harder to sell. Buyers want the new house on the market. Not the one who's been out there for over a year ("cause there most be something wrong with it").
This can only be agents talking. If the house is unique, it requires waiting for the right person to come along. That right person will value the property as much as you do, and you'll have agreement. Don't wait until you're now in a rush to sell the place. This is dumb advice.
Wow. This demonstrates how human psychology sabotages one's own best interest. Instead of relying on knowledge of the current market and realistic expectations, you wait for the "fairytale Prince Charming buyer" who will carry you off into the sunset and make you fabulously wealthy. I guess you can do that if you have no problem taking the downside risk that your property will become stigmatized. Myself, when properties are sitting too many DOM, I worry that a foreclosure, short sale, bankruptcy, undisclosed defect, or other structural/legal/financial mess is behind the scenes.
Don't list it until ready. The longer it sits, the worse it looks. I work with Buyers and sellers. The longer the home has been on the market, the lower the offer when I am working with a Buyer. In fact, I have had Buywrs ask me to search only homes on the market over 120 days. Why? Because they planned to make low ball offers.
Thanks Phil, getting my 4th home ready to sell. I am a seller not a Realtor. Very good advice! We are in a very HOT market here in Georgetown, TX..our area is selling average 18 days on the market. Any suggestions here as far as price listing goes? Thanks!
Its happening to me right now!!! House for sale for initial price 295K got an offer all cash for 260K counter at 275K they didn't take after two months of this offer still waiting,I got the property at $280 no offers, nada. I could sold it for the 260K and have another property purchased and rehabbed. The worst thing is I've heard this shit before and sometimes I still make the same mistake for listening other people around me..
So what happens if I sold my house and had to buy another house under contingency of finding suitable housing and do not find suitable housing in the time deadline propsed? So i lose my buyer and have to put it back up on the market? What if my offer doesn’t get accepted? If there are ten shoppers for every house, what am I to do if my offer is not accepted in this crazy market. Looks like sellers lose no matter what.
I am looking into purchasing my neighbors house to do some basic cosmetic fix ups and then put it on the market. I will be getting the house for a REALLY good deal but the problem is that it was built by the Amish. I haven't had a home inspection done on it yet but have you had any encounters that made a deal like this not so appealing? The house is in pretty good shape, sturdy and was well built. However, I can't really find anything online nor have I heard of anything to lead me away.
Priced my house at 20K less than I thought it should sell for. Got multiple bids and sold for much more than I expected! Pricing is #1, Phil is right.
I experienced recently the kiss of death. I got greedy and decided to price my rehab at about 20% higher than fair market price. I ended up having to rented and will hold long term but the lesson was valuable. Thanks for the video Phil.
This presentation is sooo true. I had a property on the market for $249K. 2 days later I got an offer of $237,400 all cash. I thought I'll wait for more offers since we got an offer so quick. 120 days later we never received another offer. Likewise when I sold my condo, I accepted the first offeror's offer, and made a great profit and that was only on the market for 4 days.. Phil knows his stuff..
Donald Custis was (
My husband and his family they're all Masons also they all do concrete Flagstone they build waterfalls they build a fire pit they do everything you can think of when it comes to Mason that would be a big plus even if it was just to help you guys
Kenneth Stevenson
I agree.
@@bvictorious2 thanks phill I'm getting this all makes sense to me....
As a retired Realtor, you are so on target! I've had to give many clients a quick reality check. The quickest I ever sold a house was 14 hours. I did Sat-Sun open houses and timed the listing to hit the update sheet on Sat morning. No appointment needed! It worked! Take down as many "barriers" as possible, get as many people through as possible. And I wasn't afraid to turn down an overpriced listing either. They'll only blame the lack of a sale on you anyway!
Completely, I agree with you about 1st offeror, And In Arabic we had a proverb say: Do not slap the first chance.
I am selling my house, I just interviewed one realtor yesterday, he was the one to star high price late lower price. Thank God! I found you!!Such precious knowledge, I really appreciate you !🙏subscribe you!!👍
Alright Phil, I've been in real estate since '97 and have recently watched some of your videos. You my friend share the truth and don't mess around. Kudos!
Your goal is to *sell* and the first offerer is explicitly telling you they *want to buy*... counter-offer or not, egads, sell them your house and move on. Unless you're underwater, you can likely sell noticeably below your asking price and financially have a net effect that you ended up "renting/leasing" a house you enjoyed at a reasonable rate - sell, move on with your life, and be happy.
that is very informative, thanks! we are going to sell our house by the end of the year and it is going to be our first time! i can tell when you talk there are thousands of things popping up on your mind so I appreciate how precious these info are for average people like me because of the way you end up wrapping this up so preciously : )
it does make sense!
Phil...you are so right with the first offeror being usually the best. We listed our house at a price based on comps sold in our neighborhood. We staged the house by removing the clutter. On our first open house 5 people came to see it. The first offeror was also the first of the five visitors on open house day. We ended up selling the house in 4 days to the first offeror at a price close to asking price! i CAN ONLY AGREE WITH YOU IN ALL THE POINTS YOU MADE IN THIS VIDEO... Do not price too high above the comps, and we ended up with a DOM of 4 days after working with the first offeror.
Well done Beng!
Phil, I started watching you right when I got into RE. It set me on a track for success. Thanks buddy. Good stuff.
You're right Phil. I wish I knew this before I sold my first flip. I made all the mistakes you've mentioned here on my first flip. First I listed it at $235k where the more reasonable sales price was $215k. It sat on the market for about 120 days, and during that time I dropped the price by $5k less until I was at about $210k. Then I get an offer at $210k (full asking price) with a conventional loan to close in 30 days or less but with much higher closing help. The next day I got another offer for $220k, and out of greed, I turned down the first offer and went for the second. Very bad move. It took nearly 3 months for this second buyer's lousy bank to close on this deal, thus holding me up for too long. Like you said, it turns out that the first offeror had been looking and waiting for months for a house like mine to come on the market and even was on standby in case the second buyer is unable to close on the property. Had I gone with the first buyer, I would probably have been done in 30 days (conventional loan) instead of 78 days with the second buyer (FHA loan). I learned the hard way. I love your videos and great sense of humor. Thanks for the advice!
Thinking of selling our home. This video gave some invaluable insights and prevented us from making potential and risky mistakes! Thank you, Phil!
Phil : I just happen to see your videos and very impressed with your honesty, and appreciate what you do, thank you very much for your knowledge and experience, your on my subscribed list, and look forward to many more.
I learned this first hand before becoming a RE Agent! I am an agent that brings my experience to the table to help my clients. Perhaps not all agents have the personal experience, but many do and we use all that we have to be a trusted real estate Advisor for our clients.
Phil,
This was the 1st video I watched, and initially I was skeptical but watched till the end. You're seem very down to earth and a great mentor. I will go look for more of your videos.
I am just now getting ready to put my home on the market and starting to realize that hiring an experienced agent is probably a good thing. I'd hate to see my DOM increase as you
talked about. I hope to sell it in a week or less. I am now leaning more toward hiring that agent who I've been talking with. I'm old school and retired, but not interested in holding on to this
place very long once I pull the trigger on selling. I want to move on...
Great video...
Roger
I ran across one of your videos last night and I was so impressed/informed that I've probably watched all of them in the last twenty four hours. I'm about to invest in my first property and I just want to avoid as many mistakes as I can. Than you
Thank you for watching and good luck!
That was really helpful. When you first put your house on the market, there are people who have been searching for a while. They see your new listing and immediately bid. If you pass them all up, then you are left with new buyers dribbling in and the backlog of buyers is gone. No competition, and who knows how long that may take.
In fact, I can remember my own process buying a place. I saw a listing, knew the market cold and made a low but decent offer. Owner gave a high counteroffer. I passed, didn't even make another bid, and looked elsewhere. Weeks later, I found another place, made a low but reasonable offer. Owner counteroffered a bit above me but reasonable. I took it - no negotiating, it was what I wanted - and still own the property 25 years later. Best deal I ever made.
I'm scared... my open house is in a week. The only big thing I have going for me is a very small Denver inventory. I just want to sell quickly and move on with my life. Very good advice.
I am just a guy with a passion for investing in property,The best thing about what this guy is saying that it makes perfect sense,The way Mr.Pustejovsky explains his points is the clearest I heard-Its like listening to Morgan Freeman...
THANKS DUDE!!!
I am just a beginner on real state. I just have to confess Phil i am so motivated and excited with your videos.your are awesome!!!
Phil this is a very educational video for me.
A lot of realtors use that start high and can always come down strategy. Another problem we've had is they like to get a contract but they don't push it.
Glad I watched this, I have always questioned the fact I accepted the first offer and quickly on a property that I flipped. This makes me feel I made the right choice.
Pure gold. As a new agent I thought it was a 'wives tail' to say "the first offerer is the best". It's so true very often. Phil touched on the reason. The first buyer with a offer has usually seen all the competing inventory of homes, they know what they want and they know a good price. They took it upon themselves to beat every other buyer. They usually won't go through all that trouble just to low ball. If they made sure to view the house on a Tuesday and write an offer, they are more serious than the casual buyers who "may go see it this weekend".
I have a corollary to your video. As a potential buyer, I love it when I see 100 (or sometimes much more) days on market. Like the stock market, sometimes the price of a stock crashes for reasons unrelated to its underlying value. But I think it's easier to figure out why a property has been on the market for a long time than to figure out why a stock crashed (unless the obvious, like bankruptcy, etc is apparent). And I am talking about multi family, not SFR's here.
Great, concise video as usual.
Thank you so much for the information in this video! As a new REALTOR, I will be ready for the next client that insists on listing way too high right out of the gate. My first listing was 63 DOM. That's not horrible but, if we would have listed where I suggested initially, we could have been closed within that amount of time. Now I know how to have the conversation about pricing to sell. I look forward to watching your other videos.
This is excellent general advice. Having said that, there is no substitute for intimate knowledge of the market. General principles may apply differently on a cold market vs a hot market, or depending on type of neighborhood, price point, inventory, demand, etc.
Good video. I sold my house within two weeks employing these factors, you really speak the truth. Unfortunately sometimes sellers don't want to hear the truth. It comes down to,finding an agent you can work with and understanding they are your partner in selling your house so listen to them when they give advice.
John Fiskin True. Too many want to be lied to. "Your house is soooo special. Just like you." 👾
A lot of good, quite good information, straight forward, and easy to understand tips on housing real estate marketing. We`re into more commercial, industrial properties, and even have an ex saw-mill, an ex- mine, and even 197 lots of virgin lakes-forest-hills project near a major highway, all here in southern Quebec market, (And have to operate in two languages). So it`s all a bit over-complicated.
BUT the buy-sell psychology is still-basiclly- the same. Good work Phil.
First offerer is best because they likely have been in the market for a while and so their approach to your property is an educated approach and they are ready to buy!
i did not think like this but what you just said makes perfect sense!
What an amazing insight! So grateful to have come across your channel, Phil.
Thanks Phil...I'm educating myself from great videos like yours. I'm right there about to choose a realtor (listing agent) and I want to "get it right the first time."
Although I'm NOT a real estate investor WITH Phil. P it. Makes alot of SENSE to WHAT he says on his VIDEO'S I. Apply his advice on deals I. Make involving MONEY or. Finances great work Phil I. REALLY like YOU'RE resonating on it THANK YOU VERY much God bless
Very helpful, thank you. I've been fortunate in personal property transactions, guilty of overbidding in a hot market albeit selling £30k up 2.5 years later so no disaster. Luckily avoided the peak frenzy leading up to 2008 before the crash too. Currently planning to sell my house and merge with Mr Right, so in no hurry. But you are right, a house that don't sell quickly makes people wonder what's wrong with it. I know what houses in my area fetch and you remind me not to be greedy. I see one in a nearby street now changed to fixed price (the usual is offers over), sitting there since September last year. That looks desperate and I would make a cheeky offer on such a property to see if they'd bite.
Recently started watching your videos,very informative,thank you.I will be selling my house in the near future and this info is helpful.
YUP!!! One realtor told me that once the house is on the market more than 30 days, people wouldn't even choose to tour that house since there MUST be a reason why it is not pending after 30 days :) Smarter buyer will go after those properties and scoop em up.
Great information! Actually helped us in the purchase of our new home! Thanks so much!
We listed lower than expected and got 4 offers above what we were asking in 1 Day.
these white board loud mic youtubes are the best stuff ever. totally caught me from making a huge mistake
Valuable Lesson, First offer is usually the best buyer !!!
VERY VERY VERY TRUE. Very informative presentation. Greedy sellers shoot themselves in the foot by being too greedy!
Fabulous info, backed by a lot of experience. Thank you!!
Love your positive energy Phil! And you just made me feel better because we recently sold a secondary house to the first offer(or) just to get rid of it and move back to primary residence in our home state, but ever since I have been tracking sales in our former neighborhood because I felt like we may have walked away from money by selling so quickly.
I am a seller. I wonder how pricing issues and DoM apply when selling a premium property.
We have done two professional evaluation of the property, we have talked to some of our target buyers (which happened to buy 2 weeks prior to advertising our property- I know, we might have lost our buyer). We also talked to and offered a visit to prospective real estate agents, which confirmed prices. We understand our listing price might be higher than what is on the market, but the house is definitely not in the same market. 21 days have gone, and only one couple visited the house (and seemed interested, but their own house is not sold yet)
As well, DoM is often higher due to a smaller number of buyers. Average selling price in our neighborhood is 101 days, and average house price is about 100k below ours. It is certain that if we advertise our house 100k below, we will attract a lot of buyers that are interested with comparaison, but may not be able to affort our house. I am kind of conflicted about this.
Your take?
we are in the same situation. Most houses sell here for avg.200K and we are in expensive exclusive neighborhood priced at 500K+ . Not many qualified buyers here for these properties ..
Omg as a Realtor I feel so validated by this video. You started to mention it but if it's priced to low then there will be a biding war and the price automatically goes up quickly..
The first is best has been true of all my listings. I sometimes would second guess myself thinking I should work on negotiating techniques but realtors usually negotiate through other realtors and negotiating won't circumvent the psychology.
This is true of buying also. Most of my buyers end up buying the first place or wishing they would have. I always suggest to see the best place that fits their needs and is the best deal first. Then it's all downhill. And I constantly remind them with sarcasm while touring the subpar - "oh, gee wiz this sure is sooo pretty. I wonder who's touring the best place on the market for you right now? Damit!!" LOL!!
Fantastic & eye Opener. It changed my prospective of "Start Higher". The First Offer is the best offer? make sense. Just sell the property and walk out. I love this.
I have found it also depends upon the price bracket your home is selling as to how long it might be on the market. The buyer pool is greater in a 250-300K versus a house that is priced 600K or higher.
I have purchased and sold ten homes, so I have learned about realtors, and have fired quite a few. You want a realtor that will be flat out honest, will show you the numbers and put those numbers down on paper. You might not want to hear it, but you need to. If not, you will be wasting a lot of time. You also have to keep your thumb down on your realtor because they will generally list it, and if it sells, well it sells. You need a realtor that will market your home (this is key) and keep you apprised regularly.
You have to know what the market is at the time you are listing. buyers or sellers. This will dictate a lot. I received an offer on my previous house and did not want to accept it. At that time it was a buyers market and they were asking for the moon. My realtor sat down and did the numbers and showed me what I would get out of the property at that time, and what I could get out of the property if I waited for another offer - which might not come. Sure I could have waited, but in the meantime I am still paying the mortgage and the utilities and waiting I might have lost out on what I was going to get initially. Does that make sense?
Do not waste your time holding an open house. They are not for the buyer but for the realtor to garner leads. You are being inconvenienced for your realtor's gain.
-and generally the first offer is the best offer. My neighbor turned down a first offer for 525K because she said she had too much in her house. I told her that she can't think that way. You are decorating and or changing your house for you, and your pleasure and sometimes you won't recoup those costs. That is just the way it is. She did sell it about 6 months later for 475K. The number you need to look at is the bottom line, what you are going to come out with. Be smart.
Great Video Phil its definitely true.. its actually happening to one of my family members. I love you videos, Ive seen all of them and I can't wait to know more about Real State investing.
This is the same principle for selling cars. I flip cars and if it's been for sale for too long on craigslist, I do not get a lot of calls.
This is ace! Best advice, hands down. "A quick nickel is better than a slow dime", as shrewd business coaches teach us ;-)
Great video Phil, wish I watched it last month. I just reduced the selling price from $799k to $749k, house is on historic district where not many homes are new so not many comps to support it, I renovated the inside like brand new. it has been 30 days about 80 people came to look but not 1 offer, should I have the realtor pull it and relist at lower price again? or just keep reducing it by another $50k until price meets market? realtor says the listing has to be off market for 30 days for it to be refresh.
Roller Rock Pull it and relist it as a brand new listing. But with 80 showings, you should have demanded feedback from everyone of them, and if you did that, you would know exactly what changes would need to be made to sell it. 80 different buyers into one home and it not sell is crazy. never heard of such a thing.
My last home generated multiple offers, but my agent wasted so much time with the first offer, which began demanding ridiculous things, that the others were never contacted. Seriously, a lost opportunity. That first offeror manipulated him crazy. She wanted all kinds of handicapped features installed by me at my cost, upgrades to the pool, a security system... At my cost! I said "no way!" And my Realtor argued with me. "Your first offer is your best" was bullsh*t. I fired him and sold it for much more a year later. Some agents are idiots, get away from them as fast as you can. I bought the house I own now without an agent. Gave the sellers what they wanted and didn't Dick around. It's the best home I've ever had. Thinking outside the box can pay off. Patience is a powerful thing. Waiting until the optimum time to list at the price you want is a great strategy if time is not an issue. As long as you understand that the price of your next purchase will likely go up as well. I spent months being homeless, couch surfing until the house I wanted came up. It worked for me, just required a bit of sacrifice.
have to respectfully disagree. you paid mortgage+ tax for a year on an empty house. Also time is usually an issue when you have a family. For some many of us, being homeless is not an option. Also I believe what Phil meant was the initial offers ( plural) are the best.
How is it your agent's fault that a prospective Buyer kept throwing weird offer contingencies at them?
Ethically they have to communicate and deal with all offers and give you each offer and explain each detail.
You sound like a difficult person who blames others and have no respect for your agent having to deal with nonsense.
With my first house, my first offer was a low ball offer. I knew this because I visited many open houses in the area and that offer was well below houses in the area. I'm very glad I did not make a counter offer with that person. A week later, we had and open house and there were a series of people coming in which clearly made the people panic and we had 3 offers the next day for the asking price. Moral is, know what your house is worth. Look at it analytically, not what it is worth to you.
Congrats! Sounds like you were able to find the right buyer for your house!
As a future seller I am sensitive to this as well. I have watched the market in my area for over a year using Zillow, Realtor, and Redfin. Its market dependent. Hard to believe in this housing market, but large sections of Long Island still in a depressed housing market, so my research suggests most houses have days on market exceeding 120 days. Definitely a buyers market, and still many sellers underwater from 2004. So now what? Do we really want to give away our homes? A neighbor put 125K a few years ago , into a legal apartment. Not a chance she will see that money back. And of course property tax runs high, so yes sitting on a property is costly.
Another factor that needs to be addressed.... how many months of inventory in the price range within the market? .... if less than 3 months you are in a sellers market. If greater than 9 months you are in a buyers market. Sellers market allows you to price the house on the higher side of comps..... buyers market forces you to price the home on the lower side of comps..
Thank you. Great video. I am a beginner in the Real Estate Business . I love watching your video.
Good video. Lots of good information, Thanks Phil
We are the ones on the other side, who look out for the properties that have been on the market long. We know we are usually getting a good deal because of it. But still do your research!
Phil You are Just Brilliant! I love and admire your teachings so clear and amazing! God bless you dear brother and all those you love. May your light always shine and may we be blessed more to implement what you teach us and use that knowledge to bring nothing but bliss to all of humanity!
Haven't seen someone this passionate about Real Estate, and I love your videos! All that knowledge gets me excited. I just got my real estate license and would love to start flipping houses as well as assisting people as an agent. I know very little about the business, but what is your opinion about my case? Thank you.
Filipp Kishko I don't understand what you mean by "your case"?
I worded that poorly, sorry. What would be the best ways to start investing and does having a license make a big difference? In class I was taught about the laws and rules, not too much about investment strategies.
Filipp Kishko Take this free course courses.freedommentor.com
Thank you.
I've always felt that residential real estate people want to set the prices low so as to get a quick sale (and quick commission) and move on to the next sale for another quick commission. Higher sales prices don't get them but a few dollars more for getting slower sales. Fast sales are far more lucrative. So, while what is being said here does make sense, I just don't trust real estate people. Mostly that 6% or 7% commission is an unjustified rip-off.
Agents work for weeks to sell a home and spend a lot of money.
You sound stupid calling professionals a "rip off".
I am sure you are a typical seller who thinks your ugly home is worth more than others.
You sound jealous that agents work hard and make a good income.
And clearly, you have no idea at all the time and effort that is spent to sell homes.
Do us a favor, stop calling licensed professionals "RIP offs". You're rude and uneducated.
Great vid. A coworker is currently making ALL these mistakes. They're greedy greedy greedy, trying to sell a $340-$350 home for $377k. Far overpriced for neighborhood. 90+ DOM when avg for area is 30-50 days Had ONE offer for $350k, countered $365k and offerer bailed. Still waiting. Showings are all lookie-Loos. Accurately priced homes are selling, lower & higher ranges.
Phil, I personally just went through this exact scenario. I really needed to make 425k on a house flip... I agreed to let agent list for 459k he "didnt want to leave any money on the table" . It sat on the spring, summer, and fall market... We dropped the price to 439, then got desperate late in fall and dropped to 399k. Then before christmas took it off because no interest. I added more value with a basement development.... changed agents... relisted for 419k. It sold in a week for 415k. You know how much that deal lost me with carrying costs, etc. We arent even talking about lost opportunity costs having so much tied up in a property..... Learned this the hard way wished I found your videos earlier.... They are a bonanza of information for a 25 year contractor and real estate investor. Oye
Great information! I was going to list high, not now :).
Great information! Thanks for sharing. Valuable info will always help even if this video was post 5 years ago, because they are timeless.
One side question for Phil: how about price for rent? Can I list low, and get multiple offers, and let them bid? (Actually, I seldom see this happen in reality). Or should I list with market price? What if I don't know the market price, can I list high, and reduce the price if no offer comes? For example: my neighborhood, half condo, half single family. Lots of condo for rent, but almost no single family on the rental market, no comp data available. No sure should I based off condo price, or based off the ideal price in my mind. Many thanks.
We haven't found that pricing a rental rate lower creates the same multiple-offer-situation dynamic whereby the interested parties are willing to bid the price up. But you certainly could try it. Worth a test.
This is an Excellent Video Phil...... I would say that this is probaly one of the most Important video's that an Investor can have and also knowledge that would be effective If Applied. I Love the line about having it on the tablet of your heart. Habakkuk. Thank You for sharing.
Yep, waiting for a house in a particular area. I guess others do that too.
Hey Phil thank you so much for taking the time to make these videos I've been soaking it up like a sponge it has really made it seem possible for an average guy to do real estate.
Quick question if you do a subject to.. can the person go out and get another home loan or do they have to wait for you to pay off the remaining loan.
Some can, it depends on their debt to income ratio.
I found work with that first offer is much like your first job offer once you graduate. Dont haggle, take the job you dont know when the next offer may come. I lost a really good job because I haggled myself out of the job. Then didnt have any offer near as good after. Only one offer after and it was just a bad work sight in every word.
I am amazed of how much I just learn I will shared this with my boyfriend he want to become a real state investor.
@ wooooowww
How did you assume she wasn't a us citizen 🤔😒😒😒😕
What can one do if the DOM is already too high....I think I was uninformed by my agent as to the starting price and now I'm stuck???
Great video. How many days on the market do you consider to be too many for a home? In other words, at what point has it reached the kiss of death? Thanks!
+camarox84 1 to 2 months. I always sell my listings in the first two weeks. Always.
Thanks Phil! I've seen it in action and you are so right! Now it's branded in my mind Thanks again!
Phil I"m a bit confused with something. In a few videos I've seen you talk about pricing the property low enough to sell it and in many instances even create a multiple-bid situation. But then the follow on "rule" is that the first offeror (or first offer) is usually the best. To me that seems counter-intuitive. If your first offeror is the best then it's typically not wise to wait for additional bids, hence you end up selling to that first offeror at a price below what you could have potentially sold for; i.e. you priced it too low and now you are stuck with that first offer. Hope that makes sense. I understand completely how pricing is so critical but not sure I understand this particular dichotomy. Please clarify. Tks
The multiple offers push the first offeror up until they make the highest possible offer they would ever make. It works so well. We apply this method several times per day across America. It makes us a fortune.
So how long is a prudent enough time to wait for those additional offers before accepting the first?
A few days
Thanks Phil. Your videos and books are fantastic.
Phil, I really enjoy your videos and they are very informative. I have a quick question, with thanksgiving and Christmas holidays coming soon do u think it’s better to wait until after the holidays to list a second home? Because I feel the holidays are a slow time for buying a house. Thank u
It's always a good time to list
A quick nickel is better than a slow dime.
You must get a great deal before you can offer a great deal. If your property is sleeping on the market, then it is not a great deal.
Most buyers are reluctant to offer what they think the property is worth, because they don't want to offend the seller.
The real insult is viewing a property that fits your criteria and not making an offer, because that is saying the property is not worth buying at any price.
the MLS absolutely will update zillow and/or or trulia, within 5 minutes generally.
lol i been studying the market for about 8 months and ive noticed all these pointers! very true!
I think time of year is important to a sale too, if it's in the cold winter months people might not be motivated as much as in the spring summer or fall. States with mild winters excluded from this example.
For the most part, that is not correct. Even in colder northern climates, there is still almost as many sales in December in January as there are in June and July. True, there is a slight increase in the summer months in most markets, but the difference is not statistically significant enough to change one's real estate re-selling plans.
I live in a rural area in Oregon and the houses don't sell fast out here. My Mother's estate has been on the market since July 2014, the down side is the Realtor started too high, but since the price has been dropped, there have been no offers except for 1 and the sale did not go through and I'm not sure why;I'm an Heir to this estate. Thanks for the information. I also want to sell my house, so will see how fast it sells, my house is in the same area as my Mother's estate.
Every house sells fast if the price is right.
Thanks Phil for the valuable information as usual.
I am a real Estate Investor that is interested in wholesale but didn't sell my first house yet. I got a friend of mine that lives overseas who gave me Power of Attorney to sell their properties in the US. They are several houses, in Rochester, Cleveland, and Detroit. I live in DC.
I wanted to put them on the market and was wondering if it is better to deal with a real estate agent to facilitate the deals or should I try finding end buyers myself and save the Realtor's commission. If I choose the second option, how and where do I list the properties? And if I have a power of Attorney from the seller, how do I put the properties under contract if I am representing them?
Phil, listed our home in June, very limited inventory in a high end home/acreage development. We accepted the first offeror as described in your video, pre approval letters in place, and then the buyers were denied the loan due to supposed credit issues that turned up. During contract the home was off market, went back on market at a lower price, received a cash offer, negotiated the final price, went through all inspections, well/septic, pest etc.., absolutely no issues with any, and now the cash buyer has backed out within the window (17days) and we have no recourse on the earnest. At this point, now our DOM is fast approaching 90. Would you suggest removing from market and relisting in a couple of months? Any suggestions?Very Frustrated!!!
Watch this video first: ruclips.net/video/RIowGqqEemM/видео.html
Then, my suggestion would be to take it off the MLS; wait the period of time for it to reset to 0 days on market, then re-list.
hi phil , i live in venezuela and now there is an economic crisis alot of people are selling there houses and i realy think i can find some nice deals , the thing im worried is that most of the people here just want to leave and that there would not be many buyers or prices going down , ofc i have to buy as you said in one of youre vids within the margin to make the profit and protect myself but what about not much buyers couse of the crisis
This was very informative. It is a very good point, that when people are waiting for something they want to come on the market there is a sense of competitiveness and irrationality with the person being the first offeror. Thanks for saving em a lot of nonsense :)!!
I always enjoy watching your videos. Thanks, Phil.
Phil, superb video with priceless pearl of wisdom. Question. Wife and I want to start real estate investing, but really have no capital, and spread way too thin mentally and financially to try wholesaling to raise capital. So our options were to rent out our house, or sell. Without going into the pros/cons of each in our situation, we want sell. We have enough equity to pay off all debt and and then depending on what the sale price is, likely between 20 and 30k leftover to invest in single family rental property. So my question is, as it pertains to this video, is there anything wrong with first trying to sell it, but then if it does not sell in 2-4 weeks, to then just rent it out and start cashflowing? (it would cashflow very nicely, based on rent comps) I want to use this plan of attack, but don't know if I'm missing something with this strategy. Thank you so much.
Why not rent it out, take out a HELOC and use the HELOC to invest?
Phil Pustejovsky I am going to see if I qualify. If I do...hmmmmm! Thanks Phil
Hi Phil, that all sounds wonderful but what do you suggest if I've paid off over half of the house? I was thinking that lease to own idea you mention sounded awesome! Please pick me as your apprentice. Application done! I'm eagerly awaiting :-)
You can do a Rent to Own even if you have a loan on the property.
Thank you for making these videos, you are a great teacher. 😁😁😁
what is you are not in a rush to sell your house? I be putting my home in the market soon but I am in no rush to sell so I will keep it in the market until the right person buys it.
If your not in a rush then, don't put the house on the market. Cause the longer it sits there the less desirable it becomes and harder to sell. Buyers want the new house on the market. Not the one who's been out there for over a year ("cause there most be something wrong with it").
This can only be agents talking. If the house is unique, it requires waiting for the right person to come along. That right person will value the property as much as you do, and you'll have agreement. Don't wait until you're now in a rush to sell the place. This is dumb advice.
GIsela Guzman That right person will also wonder why it's 03 am and you're still sitting at the Bar. ? What's Wrong here!
Wow. This demonstrates how human psychology sabotages one's own best interest. Instead of relying on knowledge of the current market and realistic expectations, you wait for the "fairytale Prince Charming buyer" who will carry you off into the sunset and make you fabulously wealthy. I guess you can do that if you have no problem taking the downside risk that your property will become stigmatized. Myself, when properties are sitting too many DOM, I worry that a foreclosure, short sale, bankruptcy, undisclosed defect, or other structural/legal/financial mess is behind the scenes.
Don't list it until ready.
The longer it sits, the worse it looks.
I work with Buyers and sellers.
The longer the home has been on the market, the lower the offer when I am working with a Buyer.
In fact, I have had Buywrs ask me to search only homes on the market over 120 days. Why? Because they planned to make low ball offers.
Thanks Phil, getting my 4th home ready to sell. I am a seller not a Realtor. Very good advice! We are in a very HOT market here in Georgetown, TX..our area is selling average 18 days on the market. Any suggestions here as far as price listing goes? Thanks!
+Jen Charette Same as my advice on this video. If you price it low, you will create a multiple offer situation. That's what you want.
Well Done.....your passion is Spectacular ! !!
Its happening to me right now!!! House for sale for initial price 295K got an offer all cash for 260K counter at 275K they didn't take after two months of this offer still waiting,I got the property at $280 no offers, nada. I could sold it for the 260K and have another property purchased and rehabbed. The worst thing is I've heard this shit before and sometimes I still make the same mistake for listening other people around me..
100% Truth right here folks. Phil, you the man
So true, I have had this same exact thing happen.
So, what your advice would be for the sellers who made all these mistakes and are still on the market with DOM 300+ ? Are we doomed forever?
Take it off the market, and then re-list it at the right price.
Can you make a video what to do if you have made these mistakes already what to do ?
Take it off the MLS and relist it at the right price.
thank you sir, this gives me so much power to negotiate
So what happens if I sold my house and had to buy another house under contingency of finding suitable housing and do not find suitable housing in the time deadline propsed? So i lose my buyer and have to put it back up on the market? What if my offer doesn’t get accepted? If there are ten shoppers for every house, what am I to do if my offer is not accepted in this crazy market. Looks like sellers lose no matter what.
I am looking into purchasing my neighbors house to do some basic cosmetic fix ups and then put it on the market. I will be getting the house for a REALLY good deal but the problem is that it was built by the Amish. I haven't had a home inspection done on it yet but have you had any encounters that made a deal like this not so appealing? The house is in pretty good shape, sturdy and was well built. However, I can't really find anything online nor have I heard of anything to lead me away.
Ask a local real estate agent who has dealt with deals like that before