The Nosey Neighbor

We determined that $1,499,000 was the appropriate price for the house. It was late February and midway through the season. The owner was moving this May so we didn’t have time to fuss around. That was until the nosey neighbor showed themselves.

There are lots of different types of nosey neighbors. Cray Cray’s, Jerks, Passive Aggressive, Smarty Pants, and on and on. This particular nosey neighbor is a “dog walking nosey neighbor” and she told the client to price it at $1,525,000. “Keep the values up”, she exclaimed.  Our client felt the pressure and raised the price. In one sense the relief of running into the DWNN or “DAWN” meant less pressure.  Not on selling the house but on dealing with the DAWN! After two weeks, showings were minimal and we were getting the wrong Buyers in line.  I talked with our agent about it and there were several issues that needed to be addressed.  1) Carry Cost  2) Seasonality. 3) Pricing it in the right aisle.

I have WORDS I could say to the DAWN. There are other issues with the Nosey Neighbor which I’ll reveal later in the article, but first lets address the fact that Homeowners usually have no idea of the real cost of carrying a home.  Many think they bought it cheap and own it free and clear. Ok. Let’s say for arguments sake that they cleared $1,420,000 in our case and have no mortgage.  Back in the pre-covid world, sticking $1,420,000 under your mattress was about the same as putting it in the bank. Today, 5% on $1,420,000 is $71,000.  It doesn’t matter if there isn’t a mortgage, and you bought the place for $360,000. The return of $71,000 is real money. What are your taxes?  $20,000.  How about insurance?  Oh, that went up to $15,000. HOA cost? $1,000 a month or $12,000 a year. Landscaping another $4,000 a year not including new plantings. Electricity, water, home watch, club cost, sewer, stuff that goes wrong.  Basically it’s at least $10,000 a month to carry the house. I wonder if the DAWN would be interested in contributing?!?

Second is seasonality…..

The seasonal renters are leaving in just 4 weeks. While they may or may not buy your home, they spur activity. Once they buy something it typically frees the homeowner to purchase something else. Snowbirds also start to dissipate in April and May.  People do shotgun type purchases since they are zoned in more. The family market is more in April, May, and June.  So, the problem for our homeowner comes if it’s a receding buyer pool come March 31, 2023. If it doesn’t sell then that $10,000 a month could continue on through the summer time. A $1,470,000 sale price closing on May 1 is be better than a $1,450,000 sale price on August 1. The three months of $30,000 carry nets you a loss of $10,000.  Homeowners often say “I don’t need to sell” but once you look at it like a business, they really do need to sell.

As far as price goes, Sellers need to understand that in a low activity market, “must” Sellers will lower the price. Meaning if everyone at $1,525,000 to $1,550,000 needs to sell and moves the price to $1,499,000 along with yourself, than you are back to square one with more competition.  Getting ahead of the curve before that happens is critical.

Nosey neighbors can be an asset to real estate agents but usually are a source of confusion to the homeowner and a nemesis of misinformation that the Realtor has to combat.  They confuse on price and marketing, and give tons of misinformation. The one asset is they can spread the word. You want them to be aware of it and bring their friend unless it’s a CRAY CRAY neighbor. Cray cray neighbors can ruin a deal so try to keep those away.

As far as our story is concerned, I suggested we approach the DAWN to see if she would contribute the $10,000 a month carry cost.  I said if you do that, the DAWN will see you and run back into your house and never bother you again. We changed the price to $1,499,000. This generated 2 separate Buyers and a bidding war broke out. It sold for $1,512,000.

Now that it dawns on me, our homeowner client will have moved and definitely will never see that DAWN again.

Yasmine Hito was born and raised in Casablanca, Morocco. She moved to the U.S in 2003 as an International Student in the pursuit of the “American Dream”.  Home ownership in Morocco is important. Not only does her culture encourage it for investment, but it’s special in everyday life. Each room in the house is customized with many handmade pictures, fixtures, and furniture made by locals. At a young age she knew she wanted to work in Real Estate because she understood the importance of investing in the market as property goes up in value and is the center of family joy. And what better way to learn about Real Estate than working in the industry yourself? She decided to take the big leap of faith and move to Palm Beach County to make that dream a reality.  South Florida is known for its exciting array of diversity and rich cultural heritage. Yasmine speaks French, Arabic, and English, so you can definitely say that she is well versed! Yasmine’s diverse cultural background sets her apart from other Realtors because she knows how to accurately communicate in different languages and understand  the unique needs and preferences for her clients, while catering to a variety of personalities and backgrounds.

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