Why wouldn’t a seller negotiate with you, even after you can prove to them that his or her property isn’t worth its listing price?
I’ll tell you why.
Louise Phillips Forbes is a New York City real estate agent. She showed a property to a potential buyer, a property that had been on the market for awhile.
The bidder, a Goldman Sachs investment banker and first-time home buyer, put together a one-and-a-half-page analysis justifying her bid, which was 11 percent lower than the asking price.
She based her case on data from PropertyShark.com, an online real estate company, and interviews with brokers about how long it had taken to sell apartments in five nearby buildings.
The bidder argued that she should pay less because it would be harder to resell a luxury apartment on the Lower East Side.
The argument was valid enough that Ms. Forbes thought the developer might want to negotiate.
Since then, Ms. Forbes has received three higher offers, and last week, the developer accepted one for the full asking price.
How much is a property worth? What someone is willing to pay for it.
Unfortunately, you might often find there’s someone out there willing to pay more than you’re willing to pay. Even in a slower market.
More: Young Buyers, Prepared and Fearless – By Christine Haughney, The New York Times