Thursday, October 16, 2014

First Casualty of the Volatile Stock Market


This is barely worth writing about here, one instance from one broker. Just to make it interesting I'll spell out all the details;

Asking price $1,795,000

We bid $1,650,000

Counter at $1,700,000 (looks like we'll get there!)

Before we can react, client was considering $1,675,000, seller changes counter to $1,750,000 firm.

We politely decline and rescind our offer.

Yada yada yada a week goes by, listing agent emails me are we still interested? I call client and after some discussion I am told they would like to lower their bid to $1,550,000. They have watched a significant portion of their portfolio evaporate the last few weeks and the market volatility/geopolitical events have them unnerved.  We are not holding our breath.

I am of the opinion that this volatility in the stock market will have a minimal affect on the current market, however I will take what I can get. If for some reason this is more than a temporary bull market correction, perhaps we will see some meaningful capitulation from sellers.