Do Cash buyers in Orlando Overpay for property?
In the last quarter, 56% of home sales were cash buyers paying cold cash.
Cash does talk and allows the cash buyers to be the top bidder. But does that mean that they get what they paid for?
Cash buyers overpaying for property may also be common
- Do the cash buyers have a good buyers agent advising them?
- Or are these cash buyers under the spell of the listing agent who works for the seller?
- You do know, the listing agent’s job it is to sell the property for the highest price and most favorable terms for the seller.
The listing agent can inflate the value
In Real Estate, that is called “puffery” but in the real world that may simply not be the truth.
Is it fair?
The word “fair” has been removed from the realtor code of ethics. Really, it has.
The listing agent is not obligated to tell the buyer anything about the true value of the property. If the property is overpriced, their job is to convince the buyer that this property is a “bargain”.
After all more than likely, a cash buyer will not get an appraisal. And even more likely is that their own buyers agent will never tell them that the property is overpriced. Most agents shy away from that. Unlike our office that always wants the home buyer to be informed.
Out of town buyers are most vulnerable
Buyers from out of the area have no clue if a property is priced fairly or not. Central Florida home prices may seem like a bargain compared to where they currently live.
Overpriced property story:
These particular buyers are from out of the area and the property they like is grossly overpriced. The listing agent tried to convince the buyers that the pond view is worth $100K more. Pushy, pushy, pushy. The comparable show a value of about $750,000 yet the house is listed for $875,000. AND it needs some work, unlike some of the other properties that have sold for less.
The listing agent thinks I should just take her word for it. Fortunately an appraiser will not care what agents think or feel; they only work with facts found in recent sold properties. My buyers have reviewed the comparable sales and have decided not to over pay. Perfect. They just moved on to another property that does have good value. That’s the way it should be.
For honest answers to all your real estate questions, call a true buyers broker who will always look out for your best interest. 407-539-1053.