Over the past few months a real change has occurred in the way the buyer and seller view the market and what each is trying to get out of it.

As we mentioned in the previous article, we currently have 3 prices rotating. We have the Original Price, the Banker Check Price, and what we like to call the BankCash Price.

The BankCash Price is the agreement between the buyer and the seller involving both a Banker Check and a Cash percentage.

 Let’s dive in to the sellers point of view:

1) There is a risk when accepting only a banker check unless the seller has something to pay off through the bank. 

2) It is currently safer to keep the money in real estate than it is to have in the bank.

3) If they sell only by Banker Check, they might not find anything else to buy with the money for a decent price.

4) There is a risk when selling in cash only because the discount they will have to make is huge. 

5) If they sell in cash there is currently not much to invest in.

6) To invest in a foreign country is risky especially if they are remaining in Lebanon. 

7) Then there is the dilemma when it comes to buyers willing to pay more just to get their money out of the banks, so why not take advantage of the situation. 

From a buyers point of view we have:

1) They feel that most properties are overpriced when it comes to a banker check.

2) They are taking into consideration the resale value. 

3) The risk of leaving their money in the banks is easier to take. 

4) Most prime properties are not on the market at the moment.

5) They believe that most developers still owe the banks and are hoping prices drop even more when they start to get desperate. 

6) There is no point in buying in cash if the offer isn’t amazing.

So the sellers see a risky market that might lessen their money value and are finding it difficult to let go of the price they originally paid for it. Banker Check buyers are searching for an opportunity. Cash buyers are looking for something worth investing in. So we are all stuck in a very clash and both parties need to find a middle ground to make a deal. 

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By Anis Kfoury
Real Estate Consultant