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Old 10-18-2012, 05:12 PM
 
Location: Kansas
19,189 posts, read 14,062,995 times
Reputation: 18141

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So, what is this game called in the real estate world? We gave the our realtor a set amount that we could pay in cash for a house, set, make a point this was it. We asked to see a house that was close in price to what we were going to pay out for a house but we weren't sure about it so the realtor suggested another property that was higher. I had saw the higher priced property but not paid any attention because I did not believe the owner would probably go down enough unless he was pressed to sell but our realtor said we should look at it because they thought he might go down to our price. Well, we looked twice and made a verbal offer and he countered, too high not even in the middle area but high. So, now they want us to get it all in writing with an earnest deposit and put it forth anyway. Was going to do it but I don't really trust the agency now since it looks like a "game" and we don't have time for a "game" since we need a home because ours sold almost 4 months ago. The offer we made was just a little over the county appraised value and they seem to be about right on the mark since I have looked through the records and asking prices of homes in the area. So, what kind of game is this? I don't think this was just a mistake and I believe we were mislead in hopes of hanging onto the possibility of a sale.
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Old 10-18-2012, 05:17 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,555,896 times
Reputation: 2179
Maybe the seller won't negotiate seriously until they see it in writing with all the terms spelled out. You shouldn't have to actually give them a deposit until they accept your offer. But if you don't want to make a written offer, then tell your agent and move on.
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Old 10-18-2012, 05:24 PM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
Reputation: 29256
Quote:
Originally Posted by rjrcm View Post
But if you don't want to make a written offer, then...
then all you have is a conversation about the idea of making an offer.
It just isn't the same.
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Old 10-18-2012, 06:05 PM
 
Location: Kansas
19,189 posts, read 14,062,995 times
Reputation: 18141
Quote:
Originally Posted by rjrcm View Post
Maybe the seller won't negotiate seriously until they see it in writing with all the terms spelled out. You shouldn't have to actually give them a deposit until they accept your offer. But if you don't want to make a written offer, then tell your agent and move on.
At the appointment in the morning, we would sign the offer and give the real estate company $500.00. I understand the requirement and normally would not have a problem with it, but I made it plain from the beginning that we had X amount to spend (non-negotiable) so I guess it was my mistake to look at higher priced properties. The intention was to give a written offer and the check for earnest money but since the transaction would be "in-house", the seller was called to just "feel" him out and he gave them a counter-offer. I'm going to cancel the appointment in the morning and we are going to look in another city. Maybe we should go FSBO and cut out the middleman!
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Old 10-18-2012, 06:43 PM
 
Location: Austin, TX
9 posts, read 13,090 times
Reputation: 18
If you are still in negotiations with the seller on the property then you shouldn't have to pay any earnest money. If I am reading correctly, you made an offer (verbally) and they countered with an offer still above what you are willing to pay. Your next step is to make your offer in writing by A) keep your original offer, B) come up as high as you are willing to go or C) move on to something else. Once the final price has been negotiated and signed then you give your earnest money.

If you do not feel comfortable with the situation tell your agent, they are there to help you. If he doesn't listen, find another agent. Since you are on the buyers side of the deal there is no additional cost to using an agent, and "Cutting out the middleman" is not a wise choice. An agents primary responsability is to make sure the transaction is carried out correctly, completely and legally.
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Old 10-18-2012, 06:55 PM
 
Location: Salem, OR
13,741 posts, read 31,556,293 times
Reputation: 12105
I am confused why you are focusing on asking price rather than market value. I show people homes that are out of their stated criteria all the time as long as I know the property is over priced and that the real price is in their stated price range. Sometimes when you share comps and such, you can get a seller to come down. Doesn't work every time but it works enough to make it worth it.

So I guess the question is, do you think your agent is showing you homes where the market value is in your price range. If so, it seems they are doing their job. We don't do verbal offers here so I can't speak to that process with you.
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Old 10-18-2012, 07:20 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,672,404 times
Reputation: 3809
The seller has indicated a willingness to negotiate, but wants to see a written offer. If you want the house, make a written offer based on the current value as indicated by the comparables your agent will provide for you.

Keep negotiating. Do not be the first to leave the table. Keep negotiating until the seller says that's it, no lower.

Your agent understands that prices are negotiable and that sellers also reduce the prices. As long as the agent is pointing out homes that meet your criteria the it seems s/he is doing the job properly. I don't see any "games" being played.
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Old 10-18-2012, 08:04 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,555,896 times
Reputation: 2179
Quote:
Originally Posted by AnywhereElse View Post
... I'm going to cancel the appointment in the morning and we are going to look in another city. ...
Of course, that's your choice. Did the seller ask for a written offer after your verbal discussion, or was it just your agent being hopeful it would work out? If the seller has indicated a willingness to negotiate a written offer, it seems you are being premature in giving up. Even if not, the seller may yet reconsider once they see a offer in writing. What's to lose by trying?

Yes, your agent normally holds the deposit check until the offer is accepted. If not accepted, then it is returned to you.
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Old 10-18-2012, 08:32 PM
 
Location: Needham, MA
6,324 posts, read 9,026,282 times
Reputation: 5324
It sounds like this "game" as you refer to it is the process of buying real estate. You make an offer in writing, you negotiate a price and contract conditions, and then if everyone agrees you buy the house. It's unclear to me where the problem is. You say the asking price is out of your budget. Don't pay it. Instead, negotiate a price that is in your budget. You say you are disappointed with the seller's counter. Don't accept it. Did you expect them to give away the house because you expressed interest and didn't even put your offer in writing? I can assure you that you wouldn't even get a counter from one of my clients until you put your offer in writing. People who are serious put their offers in writing. Anyway, it's not where you start in a negotiation. It's where you finish that's important. Too many people throw up their hands in defeat when a seller doesn't make a counter offer they feel is big enough. If you can't come to an agreement then no harm done. All you've wasted is a little time and a little paper.
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Old 10-18-2012, 08:53 PM
 
Location: Florida -
8,238 posts, read 9,994,274 times
Reputation: 15086
Quote:
Originally Posted by MikePRU View Post
It sounds like this "game" as you refer to it is the process of buying real estate. You make an offer in writing, you negotiate a price and contract conditions, and then if everyone agrees you buy the house. It's unclear to me where the problem is. You say the asking price is out of your budget. Don't pay it. Instead, negotiate a price that is in your budget. You say you are disappointed with the seller's counter. Don't accept it. Did you expect them to give away the house because you expressed interest and didn't even put your offer in writing? I can assure you that you wouldn't even get a counter from one of my clients until you put your offer in writing. People who are serious put their offers in writing. Anyway, it's not where you start in a negotiation. It's where you finish that's important. Too many people throw up their hands in defeat when a seller doesn't make a counter offer they feel is big enough. If you can't come to an agreement then no harm done. All you've wasted is a little time and a little paper.
I agree! -- Unless you are serious enough about buying the property to make a written offer with a deposit, why should the seller negotiate anything. On the other hand, once you establish yourself as a qualified buyer, with a serious, written offer -- then, it is incumbent upon the seller to give your offer some serious consideration. Even if they counter, the negotiation is still only beginning.
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