During Quiet Periods In Real Estate, It Is Easier To Find Serious Sellers

During quiet periods in real estate, such as the current one, it is possible to find serious sellers—those who are really interested in selling.  The serious sellers are prepared to be attentive to the market and to adjust the price to the market price and close a deal.  Lowering the asking price is not necessarily a “decline”, since for the most part, the asking price is higher than the market price.  Those sellers who have tried selling a property at a certain price for a while and did not get a worthwhile offer, updated the asking price and adjusted it to the correct market price.

According to Eitan Bloomberg, manager of Anglo-Saxon Herzliya Pituach, “In contrast with good periods when sellers could ask for more than the market price, during this period they need to ask for a price that is very close to the market price.  The surplus of supply and sellers who are not prepared to compromise on the price are causing properties to remain unsold in the market for a long time.  Those sellers who are still not ready to sell remain with a price that is 20-30% higher than the market price.”

In most cases, when the seller internalizes the market price, it is the result of time after the property has been offered on the market for a long period and no offers close to the asking price have been received.  Setting the price is often based on emotion.  For instance, there are old houses where it is clear that they need to be marketed as a plot of land, or as partially renovated, or as a renovation project of a very certain type that is not relevant, but the sellers have a hard time accepting this fact and the price is therefore incorrect.

Bloomberg adds that “when we come to evaluate a property for the first time, the sellers almost always believe that their property is worth much more than its true value.  We understand that there is a process until the seller understands that the market conditions are what determine the prices.  Unfortunately, only after some time do the sellers understand the real price.  In our experience, good offers are rejected out of hand by sellers who are not ready, and sometimes these offers do not repeat themselves when the sellers are ready to compromise.

When a penthouse at the marina was first put on the market, the price at which it was offered was $7.5 million, a price that in a good period would have been realistic, but today, taking into account the quiet period due to the global financial situation, the high dollar, and perhaps the security situation as well, it was decided to lower the price to $6.5 million, which is in line with the property and the period.  This price basically does not quantify the rarity of such a property and its unique characteristics such as the exemption from rental requirements, its location on the first row from the sea, its 323 sq.m. net size, being on one level, a 125 sq.m. front porch, a private elevator, and more.  It is rare to find such a property.  As we know, properties of this size and level will not be built along Israel’s shores.  But again, a serious seller who wants to sell will adjust the prices to the market conditions and the period.”

Category : News and Articles

Leave a Reply

Send to Friend

Email Agent