Some Realtors don't service their clients well.... 2 stories

[Brett B.]

So I have a few rants that I would like to share. I feel like I can move on after sitting on the BP chair and talk about it.

Story 1 - 22 unit complex in Houston TX

So I purchased a 48 unit complex about a year ago for 21k a unit. Needs work but it is occupied. A few blocks away, closer to interstate (actually facing the interstate) is a 22 unit complex that has been on the market for a year. I called about it a few months back and it was in contract. Well it just went back on the market so I put a call in.

Price - $600K plus an estimated $400K to make habitable. So $1,000,000 and this place will be lucky to net $60K a year. The Realtor tells me that it has to be an all cash deal. Well of course it does. This place would not even appraise at $200k , hell, the county appraisal district has it listed for $125,000. I asked the realtor if his client knew about the comps, like mine selling for $21K a door? He said they don't care about comps, this is the price.

Another potentially good money maker will sit on the market, decay even further and do nothing to raise my property value or improve a neighborhood.

Story 2 - Duplex by TSU and U of H 

I purchased an 8 unit property a half away from this one and paid $22,500 a door. This property is run down and been an eyesore on the block. I tried to get in contact with owner but to no avail. Well this property just hit the market. Asking price $275,000. 

The only thing in this neighborhood that has sold even close to that was a 4 plex, completely renovated and sold for $250,000. I asked the realtor if she educated her seller on the area, she simply said that this is the amount of money that he wants.

Sorry to go a little geek but this reminds me of a Simpsons episode where this older woman is trying to sell the Comic Book guy all this valuable stuff. She found out from Bart and Milhouse that is was very valuable and she says " Well if this is valuable, back into the basement with you."

I know Realtors want the listing, but are you really doing anyone a service by letting them come up with unrealistic prices for their property? First educate yourself on the market by pulling comps and market trends. Then educate your clients on what type of realistic offers they would expect. The minute you let them become way too unrealistic, they will never see what their property is really worth and investors, renters, neighborhoods and even your clients really miss out.

Brett