~ The High Cost of Emotional Attachments in Real Estate ~
The house was listed for just under $1.3 Million. It had been in escrow twice. The first time, right after it hit the spring market, eager Buyers stepped up with a little under asking price and the Seller accepted. If fell out of escrow, though, after the Buyers found another nearby property that was more to their liking and more in line with their dreams.
The second offer was lower. This typically happens after a failed escrow. Sometimes listing agents will add a note to their comments in the MLS saying the escrow failed "through no fault of the property." It doesn't matter. Once an offer is withdrawn----for whatever reason---a listing is considered "tainted." So, the seller took the second and lower offer only to have the second Buyer walk after reading the Seller's disclosures. The documents included an estimate for tens of thousands of dollars in repairs caused by years of deferred maintenance. Buyer number two thought that a bit much.
Three months after that second failed deal, the house remained empty and listed at the same price. By the way, it was initially listed at just under $2 Million back in 2008.
A third Buyer with a pretty sharp real estate agent made an offer for $1 Million. Disclosures in hand, the offer was made in anticipation of a counter. That counter came in at $1.2 Million. Sheesh. The third Buyer bravely offered more only to hear that the Seller was not going to respond because the gap between them in "perceived value" was too great.
The listing agents explained that the Seller was emotionally attached to the house. They also indicated they knew that the Seller's emotionally-driven perception of value was unrealistic in today's market.
The property has been taken off the market "to give it a rest." It will probably reappear in the Spring and the Seller's perceived value will not have changed while the market value may have dropped by ---what do you think?---another 5 to 10%?
All told, the Seller's emotional attachment to this home will likely cost her hundreds of thousands of dollars. That's a lot of money where most of us grew up!
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707.337.1182 | Kirsten@KirstenLindquist.com | SonomaIsHome.com
Pacific Union International & Christie's Great Estates
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109 East Napa Street | Sonoma, CA 95476
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If you have a Sonoma Valley home to sell --- or a Sonoma County property you've been thinking about putting on the market --- the holiday season could be a great time to list it. Most sellers take their homes off the market at this time of year with plans to re-list in the Spring. Right now, though, with inventory so low and buyers still very active sellers are calling the shots in a surprising number of transactions.
