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They keep this area propped up in price and refuse to budge as long as they can. They even work in cahoots with buyer's agents to determine the highest their client is willing to go and work to get to that price point or higher. Even if the buyer could purchasea particular house for a better price, realtors won;t let it go coz it would affect the prices of other sales in the area thus affecting their bottomline.
The problem with this thinking is that you assume sellers and buyers are morons that aren't capable of intelligent thought. So either you believe consumers are so stupid that agents can manipulate them willy nilly, or egads...there are actually sellers that refuse to come down in price and buyers that are willing to come up and pay over comps.
So are you saying the buyers and sellers in your area are incapable of thinking for themselves and making their own decisions?
Just this past Saturday we saw a home show up on the listings. Brand new listing that morning. We called our agent to setup a showing asap and were in for Sunday (24 hour notice needed). Get a call that night from our agent that the house was offered on and accepted?!?! It was not even on the market for 1 day! My only conclusion was the listing agent had a buying client that was looking for such a home, showed it that day and sold it. Double commission, why not.
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I saw a home pop up at 1:30, arranged for my client to see it at 5. By 3:30 it was pending. Someone else saw it, raced over there, and made an offer the seller couldn't refuse. The buyer was not represented by the listing agent. It happens, if you have to wait a few days to see a house, you won't get any of the good ones.
Every home we have bid on thus far has had multiple offers. There are several homes that have been sitting for months at the same price and are not moving. Meanwhile a gem will pop up and be gone before you know it. Just this past Saturday we saw a home show up on the listings. Brand new listing that morning. We called our agent to setup a showing asap and were in for Sunday (24 hour notice needed). Get a call that night from our agent that the house was offered on and accepted?!?! It was not even on the market for 1 day! My only conclusion was the listing agent had a buying client that was looking for such a home, showed it that day and sold it. Double commission, why not.
Are you sure the house came on the market Saturday? If you're looking at websites like Zillow & Trulia sometimes they lag behind MLS by a couple of days.
Quote:
Originally Posted by Mistertee
There are agents who make a killing in a certain area. They keep this area propped up in price and refuse to budge as long as they can. They even work in cahoots with buyer's agents to determine the highest their client is willing to go and work to get to that price point or higher. Even if the buyer could purchasea particular house for a better price, realtors won;t let it go coz it would affect the prices of other sales in the area thus affecting their bottomline. I hope they get rid of the profession in Residential RE and make a list of points that enable buyers/ellers to complete the transaction without these scumbags.
What's with all these conspiracy theorists around here lately?
Quote:
Originally Posted by Heidi60
Banks don't confuse so called "comps" with an independant appraisal; neither should anyone else!
What do you think appraisers use to determine value? I believe they're called . . . COMPS! In fact, I often see appraisers use in their report the exact same comps I used in my market value analysis. I think you may be the one that's confused.
I think you (and much of the public) place WAY too much faith in appraisers. They're often wrong and their process is not all that different from what real estate agents are using.
Last Sunday a nice 2 bedroom split level home from the 1958 went on the market... showed well and had all system upgrades... roof, plumbing, electrical, insulation... etc.
I mentioned it to a co-worker... it was listed at 399k
It's pending at 460k with multiple offers.
The only thing that proves is that the listing agent apparently was a neophyte or just plain old clueless to the market s/he is listing in.
There are agents who make a killing in a certain area. They keep this area propped up in price and refuse to budge as long as they can. They even work in cahoots with buyer's agents to determine the highest their client is willing to go and work to get to that price point or higher. Even if the buyer could purchasea particular house for a better price, realtors won;t let it go coz it would affect the prices of other sales in the area thus affecting their bottomline. I hope they get rid of the profession in Residential RE and make a list of points that enable buyers/ellers to complete the transaction without these scumbags.
The higher the price the more money for the seller...
I've bought plenty of homes without brokerage and sold a few this way too.
Not many sellers today in California would be able to fulfill the duties now required under California law which includes specifics not found in Stationary Store contracts.
The reality is the more laws and regs... the more specialized the field.
It is the agent/broker's duty to maximize the sale for the principal... I wouldn't call it cahoots.
If you want to buy without an agent... you could do what a co-worker of mine did last two months ago... physically go door to door in the neighborhood where she wanted to live, introduce herself to all the homeowners and buy a home... no brokers involved.
I think you (and much of the public) place WAY too much faith in appraisers. They're often wrong and their process is not all that different from what real estate agents are using.
Which would mean that real estate agents have WAY too much faith in comps and are often wrong too?.
The only thing that proves is that the listing agent apparently was a neophyte or just plain old clueless to the market s/he is listing in.
Nope... one of the top agents in the county with a staff of 5...
Her strategy is to price at a point to maximize traffic and let the competition begin... this is the reality of the market right now in the San Francisco Bay Area...
Even Bank Owned properties are marketed this way... everything is to encourage bidding.
I failed in several attempts to buy in the last 6 months... one was adjacent to my home... each property went over asking and went for 250k over asking and it went for cash.
Last Sunday... I had to wait coming home at 3:30 in the afternoon because of a traffic jam of people trying to park to look at an open house...
County wide, homes are up 30% and this is January to January and does not include February.
Comps are a snapshot of one point in time for a specific instance where a seller and buyer were able to close a sale... that property is no longer on the market... it has been sold.
Appraisals can't always find comps... especially on unique properties. They often will have to arrive at a number bases on alternative methods... such as the cost to rebuild or is that even a possibility with some waterfront properties that couldn't be rebuilt...
Everything is an opinion of value and that is the best that can be done.
Comps are a snapshot of one point in time for a specific instance where a seller and buyer were able to close a sale... that property is no longer on the market... it has been sold.
Appraisals can't always find comps... especially on unique properties. They often will have to arrive at a number bases on alternative methods... such as the cost to rebuild or is that even a possibility with some waterfront properties that couldn't be rebuilt...
Everything is an opinion of value and that is the best that can be done.
Thank you for expressing this so succinctly. So many buyers and sellers fail to reach agreement because one or both are married to a number they think the comps are telling them. The comps are a windsock. They indicate the general direction and, less so, the strength of the market.
Comps are a snapshot of one point in time for a specific instance where a seller and buyer were able to close a sale... that property is no longer on the market... it has been sold.
Appraisals can't always find comps... especially on unique properties. They often will have to arrive at a number bases on alternative methods... such as the cost to rebuild or is that even a possibility with some waterfront properties that couldn't be rebuilt...
Everything is an opinion of value and that is the best that can be done.
"Everything is an opinion of value and that is the best that can be done."
Words to live by.
When buyer and seller can arrive at a value that doesn't compromise either's opinion too much, you often have a deal.
In the current market where I am, dynamics favor sellers' opinions. Buyers are willing to alter their opinions in response to the dynamics in play.
And it is not uncommon for an appraiser to call an agent, looking for more information on a closed sale, or more insight to the value in a current transaction.
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