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The home I want is an REO and listed at $499,900. I offered inititally $500,000, then my buyers agent suggested an offer of $510,000. So I updated my offer. The offers are all due by tomorrow at 5:00 pm. She now strongly suggests $517,000 and says there are 4 other offers.
I hate being manipulated and lied to and I strongly suspect she's playing me. The listing agent is in the same office as my agent.
I offered now 17 grand over listing! Isn't this good enough to get the house? I really want it as a retirement home. Credit scores of my husband and I are 800+. We put doen $20,000 earnest money deposit.
What I need to know from all you experts ASAP is: isn't $17,000 over asking price good enough to get this home? This is located in June Lake, CA, an out of the way place at 7600 elevation with a population of only 600 people.
WE don't know the comparable sales of the neighborhood. As mentioned in your last post, you need to bid to win. If you're comfortable with $17k over and you lose, are you going to be upset? You need to know your own limit. Your appraisal will make sure you don't pay too much. You haven't told us what the actual value of the home is. If it's priced to encourage a bidding war, $17k over might not be enough.
Just because your agent wants to help ensure you win with your offer doesn't mean she's playing you. She's making sure you understand that you might lose.
OK... thanks for reeling me back in emotionally. I really thank all you real estate pros for your guidance. I wish I had you as my representatives. How can a real estate agent not know what the highest offer is? Come on, people talk. They want the best commission. She knows what it is-- just tell me so I can bid 5 bucks extra. (!)
Zillow's Zestimate is $330,000. The bank bought it at auction for $525,000 on 12-26-12.
disregard zillows estimate right off the bat. use the comps that your agent (hopefully) provided to structure your offer. keep in mind, others may be willing to go above what the comps may reflect is a good price to get a property, hoping that it will appraise.
So the zillow estimate is $330,000 and you offered $500,000. Zillow estimates are useless. And if you do believe in them, why did you bid $170k over the zillow zestimate? LOL.
When people ask what the property is worth, its usually a comparison of similar nearby homes for sale, other homes in the same neighborhood and mix in the tax assessment from the town. If you dont know how to do this, a local realtor can do this for you and help you come up with a price offer and submit it for you.
OK... thanks for reeling me back in emotionally. I really thank all you real estate pros for your guidance. I wish I had you as my representatives. How can a real estate agent not know what the highest offer is? Come on, people talk. They want the best commission. She knows what it is-- just tell me so I can bid 5 bucks extra. (!)
Actually...
It's very unlikely she knows what the best offer is, and even if she does know it, chances are she would be breaking the law by telling you. If you want to be sure, ask her. Ask her if she knows the number, and if she is allowed to tell it to you.
OK... thanks for reeling me back in emotionally. I really thank all you real estate pros for your guidance. I wish I had you as my representatives. How can a real estate agent not know what the highest offer is? Come on, people talk. They want the best commission. She knows what it is-- just tell me so I can bid 5 bucks extra. (!)
The listing agent can only tell buyer's agents what the offers are if their client, the seller, gives them permission to tell them. The bank is not going to give permission to the listing agent to disclose such a number. The listing agent has a fiduciary duty to the bank to keep that information confidential. Even if the two agents work in the same brokerage, the listing agent cannot share that information with this other agent. Banks ask for "best and final" and that's more information than they used to give. At least you get a second chance to put your best foot forward whereas they used to just take all the offers and pick one.
Oh, and commission on a thousand dollars here and there isn't much. Do the math. You think the agent is going to convince you to up your offer so she can put a hundred dollars in her pocket? Each $1000 on the price is less than $15 in an agent's pocket once you account for fees, splits, and taxes...
OK... thanks for reeling me back in emotionally. I really thank all you real estate pros for your guidance. I wish I had you as my representatives. How can a real estate agent not know what the highest offer is? Come on, people talk. They want the best commission. She knows what it is-- just tell me so I can bid 5 bucks extra. (!)
The real estate industry is an auction. If not, then why does everyone including REAs talk about "bids" and "bidding". As such, the rules of auctions should also be followed. That however, would really toss out the need for so many people in the middle extracting value out of the house the instant it closes.
Real estate for regular house buyers is one of the biggest scams around. Think about what is really going on with the so-called "offers" which are really nothing more than sealed bids in an auction except that certain individuals get to peek and then share information while the majority of buyers (and sellers) remain oblivious, trusting that the people in the middle of the process uphold something more than self interest.
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