Asset Management & Recovery: My Property is Worth.....

Gryphon USA, Ltd services clients through Gryphon Asset Management, Gryphon Realty Advisors and Gryphon Auction Group. Gryphon Asset Management manages operating entities and undertakes liquidation management in numerous business lines. Gryphon Realty Advisors is comprised of three divisions all working together; Residential, Commercial and Management. Projects range from single family investments and owner occupant reresentation to apartments and commercial complex disposition. Gryphon Auction Group assists clients with the sale of real property as well as commercial equipment.

My Property is Worth.....

Unfortunately, this is something that I hear day in and day out.  In the auction business, people think we are the Magic Hat people.  Truth is, I can only sell a property for the fair market value.  Yesterday's value and next weeks value are not really a factor.

If you buy stock sometimes it goes up and somethimes it goes down.  Real estate FMV sales are kind of like the stock market.  The asset might not be worth what you paid for it.

Is this a very good blog?  I don't know.

I have, however, used this explaination with many sellers and it is something that they understand.  They are not real estate experts and can't understand the real estate market.  They are not stock experts either, but relating the value of property to the fluctuation of the stock market makes them understand for some reason.

Just a thought for people to try. 

 

Do you have questions about distressed assets, receivership or bankruptcy sales, auctions?  Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com).  The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast. 

United Country Gryphon Realty & Auction Career Opportunities Available.  Call 614-885-0020 x 17

4 comments • Rich Kruse • November 29 2006 07:12PM

Comments

Hey Rich, makes sense to me. The market is what it is. We don't make this stuff up.
Posted by Bryant Tutas-Tutas Towne Realty, Inc over 3 years ago
I think the problem is to many late night infomercials. People seeing commercials about "average folks" buying property for no money down and then flipping it for a huge profit without having to pay any carry costs, closing costs, broker fees etc. This gives them an inflated sense of value and unfortunately there are agents out there who act as "yes men" and agree with whatever the clients assement is in order to get the listing. Who knows, with the changing market, maybe reality will actually set in.
Posted by Melissa Kruse (Gryphon ) over 3 years ago
Mellissa, The "flip this house" shows do the same thing. When they show the final results its: Paid $200,000 Rehab costs $25,000 Sold $300,000 Profit $75,000. I guess they forgot the selling costs of about $23,000 and the short tern capital gains of $20,000 not to mention the carrying cost. So really,maybe they made $25,000-$30,000. Not bad, but let's be real. 
Posted by Bryant Tutas-Tutas Towne Realty, Inc over 3 years ago
It's a great analogy - but a scary one knowing the stock market's history. 
Posted by Rick & Ines - Miami Beach Real Estate (Majestic Properties) over 3 years ago

Participate

(optional)
What does the graphic say?