Why sell at the end of the year?

**forrest** · 11-01-2008, 09:47 PM

Hello,

I am looking at buy a condo that costs in the mid 400s in california. The condo is part of a complex of about 30 condos built this year. There is also another complex down the road by the same builder with slightly higher prices, they have about 30 units as well. Each of these condos have about 6 units remaining each. I talked with the sales person and they said that they are trying to sell out all the units by the end of the year. I made an offer that I will most definitely will not budge from. They came back with a counter offer that is $10k higher and they do not appear to be budging from that offer as well. It has been about a month since I made that original offer, and as far as I know they have not been able to move any units.

How safe is it to decline their offer and make another one in a month or so? Do they really need to sell all their units by the end of the year? If so and they are not able to do so, will it cost the builder a lot of money? Also, the offer that I made is less than 10% of the price of the condo. In addition, I did not go with a real estate agent (although I am communicating with one and getting advice about the negotiations) so I figure that saves them about $12k, which makes my offer less than a 7% reduction from the offered price. The condos have been on the market for more than 40 days as well.

**minnesota-mls** · 11-02-2008, 04:14 PM

Thanks for your note. I would say in this case the seller is not saving any money by the buyer not being represented. Generally the listing agent "hogs" the commission and gets both sides of the transaction.

I am a bit biased, but I would really recommend you hire a Realtor to represent you on the buyside. He or she has your best interest in mind (unlike the listing agent who represents the seller and the seller's best interests) Your agent will also guide you through the transaction and be able to answer many of your questions.

Some sellers and builders may not be as motivated as a person would think. Having it be the end of the year doesn't generally make alot of difference to the seller.

A person can surely go back and make another offer on the property for sale...again though, I always recommend buyers to work with an agent. Even when I wasn't a realtor, I worked with a couple different agents here in Minneapolis on some investment property purchases back in 2001.

**markbrian** · 11-03-2008, 10:45 AM

If the builder is trying to sell all the units by the end of the year it could be because the construction loan comes due or could it be the property taxes?

Either way IF, and remember IF is the biggest word in the English language, IF the builder really wants to sell, why did they counter your offer? Did you counter back? Try making another offer/counter between your original offer and their counter, and make the closing before the end of the year if possible to further entice the builder IF what the builder's agent said was true.