Should you respond to low ball offers on your Philadelphia Condo or just refuse them? Is it better to take a chance on someone who is just trying to get the lowest deal possible or should you pass them by just to show your firm stance on asking price?
In a perceptually softening real estate market, is it better to have a low ball offer on your Center City condo, than no offer at all? Across the City, from Society Hill to Fairmount, buyers are looking for a “steal” on a condo that may have been on the market for quite some time. Dangling -like a surfers legs over the side of his surfboard, in view of any hungry shark. A few years ago, I was familiar with just the opposite, multiple offers on one condominium. Again, think of sharks.
I learned in business school that every market has cycle. Sometimes you are up, and sometimes you are down. And real estate is no exception. Unfortunately, there is no guarantee that the condo you purchased is going to appreciate each and every day that you own real estate. I would suggest that the Center City Philadelphia condo market has remained fairly stable in the past few years. We are seeing a smattering of appreciation across the board, but the level of any increase is tempered by a host of factors, and generally unique to each condominium. For instance, the time of the year when first you bought, to the time of the year (season) you look to sell, can make a significant difference in not only your marketing time, but ultimately, your value. Ditto for the showing ability of your condo- a factor in which you have much control- and current market situations such as a high inventory of similar properties at the time you seek to sell.
One option many sellers visualize renting their condo until the market improves. The song of the truly desperate. Kidding. But sometimes rentals are a nightmare, and only who wants to be a landlord for X number of years while trying to get on with their new life…..seven hundred and twelve miles from their left-over condo in Society Hill? I have seen that movie Pacific Heights one too many times to be able to sleep comfortably at night having tenants in my life.
Bottom Line: You are damned if you do, and damned if you don’t. I do think a low ball offer is someplace to start, even if it is going to upset any given seller. I don’t think people generally tell others their money will be no good because they have offended them. Go away and don’t even think of coming back, and making me a great offer”. Yeah Right. So be prepared to be insulted. Then ask yourself if your immediate plans include going to buy a new home, and offering that seller full asking price. Again, yeah right.