Investor · San Jose, CA · Member since 2017 · 53 posts · 28 votes
I am a multi-family investor and purchase apartment complexes.
I've started to notice that more deals are coming in unpriced (or with a statement "price to be determined by market"). A short conversation with the broker yields the "whisper number" which is what the broker and seller hope to sell the property for. This is irritating. Why not just put the price on the offering so that I know what is being asked, have the ability to do all the underwriting for expenses and can come up with my fair pricing to buy?
I wonder if this is a gimmick used by inexperienced brokers or whether this is more widespread and I just started noticing it. Any feedback from the broker or investor community is appreciated.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Real Estate is a people game first and foremost, not a numbers game.
The sellers do not know that the listing agent is whispering that number in your ear. Think about that for a moment.
Interpersonal dynamics are paramount. I've had listing agents tell me all sorts of things that their seller wouldn't like me to know... it's the entire reason I encourage my buyers agents to BCC me on offers. So I can follow up with a phone call.
Investor · Mesa, AZ · Member since 2014 · 176 posts · 54 votes
9y
I see this all the time on complexes in the Phoenix market. I think it's a way to generate calls/leads mostly. When I see these properties I quickly (back of the envelope) underwrite the property, determine NOI, and divide by whatever the current trade rate is (cap rate).
It's annoying but I think it's the sign of a definite seller's market.