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I think it was worth it but I still just don't feel right simply because it was full asking (though I did ask them to pay closing costs).
The rundown:
The house was listed at 100k, I asked my agent who was acting as a dual agent (which also slightly bothered me) what should I go in at. He said since it's only been on the market one day I don't see them taking less than 95k which I believe is true. I put in an offer the same day it was listed at 95k with closing costs. Got rejected because it was to early. 3 days later put in the same offer, then a few hours later my agent tells me there is another offer coming in so I need to go in at best and final. I wasn't going to pay over asking so I offered 100k with closing costs. The other lady dropped out and my offer was accepted on day 4. My agent assures me it's a good deal but I'm kinda pissed I went up 5k for nothing and paid the full asking.
This is how I'm thinking, did I over pay because there weren't multiple offers? Why was I the only offer, did I miss something? My agent said he received a bunch of calls about the place for showings, but why only 1 other offer that dropped out.
There are a couple of points that stand out in your post.
1. You mention "my agent," and "dual agent." It should have been one or the other.
2. Paying above or below or full list does not comprise a true value metric. What sales price do the comparable sales support? Around Raleigh NC, many foreclosures sell for list, and for more, and in multiple bid situations.
FWIW, a busy REO/foreclosure listing agent usually does not have time or need to play games with buyers.
Last edited by MikeJaquish; 04-14-2012 at 07:25 AM..
You will never know if there was other offers or not. If your happy with your price, and you win, enjoy it. You will never know if you paid too much or not.
Two things realtors always say.
1) There is never a better time to buy than right now.
2) Many people are interested in this property. You should submit your highest/best offer.
Realtors get paid on commission, the more you offer, the more they make.
Actually, the REO banks have standard forms and policies that say submit highest and best. The agent is just the messenger. Banks really want to pick the best offer and don't have the desire to get into the back and forth counter offers that some buyers would prefer.
The house was listed at 100k, I asked my agent who was acting as a dualagent (which also slightly bothered me) what should I go in at. He said since it's only been on the market one day I don't see them taking less than 95k which I believe is true. .
Dual agency laws vary state to state. In my state, this agent broke the law by telling you what price/terms might be acceptable to the seller.
When property is priced to sell, it is very common for there to be multiple offers and for the listing agent to ask for best and final. It's common stuff for buyers to drop out of a multiple bid scenario because they prefer not to compete.
Temporary buyer's remorse is common stuff, especially when the buyer agreed to a dual agecy relationship.
Generally speaking, FNMA -owned properties are great values compared to traditional sales in my market. Why not ask this dual agent for recent closed comps to help you " appreciate" the transaction and move on.
I have the comparables but how does this work? You look at $ per square foot, but do you factor in lot size, condition, updates? You can't do that though unless they have multiple pictures or list what's wrong in the description.
Low $54 per sqft. Estate sale, hadn't been updated since it was built
Mine is $64 per sqft. baths were updated in the late 90's, kitchen needs to be updated. Largest lot size.
Another for $64 per sqft ft but has 1.5 baths instead of the 2 mine and other comps have.
$84 sq ft. which was a short sale.
These are the only comps in the last 6 months that were sold.
Last edited by househunting523; 04-14-2012 at 09:54 AM..
To this non-agent reader, it sounds like you got a good deal. Most large lots have premiums as many of us want them. Your $/sq ft is in the middle and you have the lot plus some updates plus the closing costs. One way to look at it is you made out like a bandit!
The what if's on this sort of thing are endless. The other person may have dropped out when they were told there was already a full price offer. Would you feel better if you didn't go up the 5K and didn't get it? Honestly I think you kinda lucked out with the lack of competition if you really like the place.
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