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You can try and play Sherlock Holmes as you have been doing but it's not going to help you get a house.
On the contrary, it tells me these other "buyers" are not that interested, if they are real buyers at all. As a result, I'll bid appropriately -- based on comps -- and not be scammed by an agent trying to drive up the price unnecessarily on a home that's been out there for an entire year.
Perhaps agents hate this because it cuts into their control of the transaction, but I encourage all buyers and sellers to get information on the other party, whether it is your buyer, a seller or, in rare circumstances, a competing buyer. The Internet is a wonderful resource for that. If you gain an understanding of the circumstances of the people with whom you're negotiating, including their motivation for making a move, it can be a huge plus. I found information on my buyers that was invaluable in helping me to move the transaction forward and agree on a fair selling price. For example, I was able to learn something about their source of income that allowed me to ignore my own agent when she claimed the buyers did not have a lot of money and were stretching to meet our price. Sure enough, after we signed the contract, they wanted to bring in architects to plan major renovations. They are clearly not as poor as the agent described.
Real Estate Appraisers provide an educated opinion of value. The difference in the Real Estate Appraiser's opinion vs. guesses: the Real Estate Appraiser is trained, educated, licensed, and exists to have the most highest regarded opinion of value in Real Estate than anyone and any professional.
Valuing Real Estate is economics, ideology, geography, observations of behavior, and so much more! Appraisers use Economics, Property Economics, Psychology, Sociology, theories, methods, techniques, principles, in depth analyses/analysis, art, data, information, chatter, factors, influences, prices, costs, trends, patterns, ratios, elements, units, THE SALES COMPARISON APPROACH (AND NOT "COMPS"). Comparable Properties are only 'part' of the beginning. A bank that is smart would not confuse "Comps" with an Independent Appraisal.
The salesperson has the ability to throw anything together because they are not bounded by any strict rules regarding valuations/evaluations.
Real Estate Appraisers provide an educated opinion of value. The difference in the Real Estate Appraiser's opinion vs. guesses: the Real Estate Appraiser is trained, educated, licensed, and exists to have the most highest regarded opinion of value in Real Estate than anyone and any professional.
Valuing Real Estate is economics, ideology, geography, observations of behavior, and so much more! Appraisers use Economics, Property Economics, Psychology, Sociology, theories, methods, techniques, principles, in depth analyses/analysis, art, data, information, chatter, factors, influences, prices, costs, trends, patterns, ratios, elements, units, THE SALES COMPARISON APPROACH (AND NOT "COMPS"). Comparable Properties are only 'part' of the beginning. A bank that is smart would not confuse "Comps" with an Independent Appraisal.
The salesperson has the ability to throw anything together because they are not bounded by any strict rules regarding valuations/evaluations.
Even so... plenty of appraisers miss the mark...
In one case... there were three appraisal done in a 5 week time period for a refi... the first two came in really low eliminating any chance of a refi... the third one actually came in over and the refi was completed...
The county tax assessor has full time licensed appraisers on staff... every time I have filed a formal assessment appeal... I have won.
On the contrary, it tells me these other "buyers" are not that interested, if they are real buyers at all. As a result, I'll bid appropriately -- based on comps -- and not be scammed by an agent trying to drive up the price unnecessarily on a home that's been out there for an entire year.
Perhaps agents hate this because it cuts into their control of the transaction, but I encourage all buyers and sellers to get information on the other party, whether it is your buyer, a seller or, in rare circumstances, a competing buyer. The Internet is a wonderful resource for that. If you gain an understanding of the circumstances of the people with whom you're negotiating, including their motivation for making a move, it can be a huge plus. I found information on my buyers that was invaluable in helping me to move the transaction forward and agree on a fair selling price. For example, I was able to learn something about their source of income that allowed me to ignore my own agent when she claimed the buyers did not have a lot of money and were stretching to meet our price. Sure enough, after we signed the contract, they wanted to bring in architects to plan major renovations. They are clearly not as poor as the agent described.
I don't hate it or worry about "control of the transaction."
But, emotional folks often cannot productively digest the information they find on the internet. One can find nothing but fault if one prefers to do so.
Sometimes I see buyers and sellers seizing on details, and assigning motivations and capabilities to the other party and ignoring market dynamics in their distraction.
I had a listing....
Buyer made a bit of a low offer.
Buyer's Agent, whom I know and respect, acknowledged it was low and begged for a counter of any sort, as this was The House, and mentioned that the terms were flexible.
Seller balked.
Seller Googled buyer, and despite all evidence to the contrary, emphatically stated that the buyer was not serious or qualified. Seller flat out refused to engage or counter in any way. Here is where I lost the negotiation and the sale. Buyer said "Up yours," and went out and bought another house. Buyer had no problem whatsoever qualifying and buying.
After the Seller disregarded me and smacked down another qualified buyer, the listing expired.
Seller went with another agent. Invested thousands into the property at that agent's advice. Paid a higher commission. Sold the house for less, after paying for the privilege of carrying it for many months.
I know the little exercise in controlling the transaction cost the seller at least $20,000, and easily could be $30,000 or more.
At least they didn't bend or buckle to their listing agent...
However, I appreciate sticking to principles, particularly among those who are able and willing to pick up the tab for clinging to their beliefs. It is a learning process to see how willing some folks are to absorb a financial hit.
Real Estate Appraisers provide an educated opinion of value. The difference in the Real Estate Appraiser's opinion vs. guesses: the Real Estate Appraiser is trained, educated, licensed, and exists to have the most highest regarded opinion of value in Real Estate than anyone and any professional.
...
What a bunch of mularky. The best agent can determine sales price and value just as well as the best appraiser because they have similar education and experience of the market. I don't doubt the worst appraiser is miles better than the worst agent however.
All the hopeful buyer can do is to study market values and offer what they think they would like to pay. Either you get the place or someone else does. Make your offer and beyond that, it is out of your control.
It is surprisingly common to have many offers come in at exactly the same time. Real estate works the same way as my cell phone. I can sit for 8 hours without a call and as soon as I get on the phone, i will get 2 "call waitings".
I had six (That's right. Count them. Six!) people contact me in a 5 day period and ask about buying a property I don't even have listed for sale. I don't know what the heck that was about, except that buyers come in clumps. No one has called me since about it.
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.
In my area, that would have been the issue.
So this realtor lists low, gets people interested and they end up in bidding wars UP to what the properties are worth, or is it like the housing bubble craziness all over again?
REO's & Short Sales in my area ( I only look at investment properties, I'm not looking to personally move) start out high and end up sold for much less than original asking price.
As to the rest of your post - that's a good thing (except the fact you weren't able to purchase) for your area.
Real Estate Appraisers provide an educated opinion of value. The difference in the Real Estate Appraiser's opinion vs. guesses: the Real Estate Appraiser is trained, educated, licensed, and exists to have the most highest regarded opinion of value in Real Estate than anyone and any professional.
Valuing Real Estate is economics, ideology, geography, observations of behavior, and so much more! Appraisers use Economics, Property Economics, Psychology, Sociology, theories, methods, techniques, principles, in depth analyses/analysis, art, data, information, chatter, factors, influences, prices, costs, trends, patterns, ratios, elements, units, THE SALES COMPARISON APPROACH (AND NOT "COMPS"). Comparable Properties are only 'part' of the beginning. A bank that is smart would not confuse "Comps" with an Independent Appraisal.
The salesperson has the ability to throw anything together because they are not bounded by any strict rules regarding valuations/evaluations.
Wow! You clearly over estimate the complexities involved in the real estate appraisal process and have at best a cursory knowledge of how an appraisal (done by an appraiser) differs from a comparative market analysis (done by an agent). "Comps" is short for comparative sales BTW so your post basically says "[appraisers use] the sales comparison method (AND NOT THE SALES COMPARISON METHOD)."
Quote:
Originally Posted by Brandon Hoffman
What a bunch of mularky. The best agent can determine sales price and value just as well as the best appraiser because they have similar education and experience of the market. I don't doubt the worst appraiser is miles better than the worst agent however.
I would go one step further and say the best agents can determine market value even better than an appraiser. First, agents have a more intimate knowledge of the comps (used by both agents and appraisers to determine value Heidi ) because they've actually seen them. Any perspective home buyer will tell you that the photos and information you see on MLS only tell half the story. Most appraisers looking at comps are only seeing what's on MLS. Most agents have actually been in the house and can tell you it smells like a wet dog or has a weird floorplan. Also, agents work with buyers so they know the direction the market is headed better than appraisers. Again, appraisers are looking at comps (yes Heidi appraisers are looking at comps ) which lag behind what's actually happening in the market by months because a transaction takes months to reach fruition. Agents are in the thick of it and know what's happening right now.
Quote:
Originally Posted by MikeJaquish
emotional folks often cannot productively digest the information they find on the internet. One can find nothing but fault if one prefers to do so.
Sometimes I see buyers and sellers seizing on details, and assigning motivations and capabilities to the other party and ignoring market dynamics in their distraction.
Clients often over think things. Did you see the other thread on here where someone said another buyer did not spend much time in a house and the owner's dog recognized them therefore these people weren't serious buyers? People like to play detective or try to get inside someone else in the tranction's head. If they spent more time worrying about what they were doing instead of over analyzing what the other guy is doing they'd have more success.
Quote:
Originally Posted by MikeJaquish
However, I appreciate sticking to principles, particularly among those who are able and willing to pick up the tab for clinging to their beliefs. It is a learning process to see how willing some folks are to absorb a financial hit.
I tell my clients whenever you want to say "it's the principal" you should instead insert these words in that phrase's place "I'm about to bite my nose off to spite my face."
Wow! You clearly over estimate the complexities involved in the real estate appraisal process and have at best a cursory knowledge of how an appraisal (done by an appraiser) differs from a comparative market analysis (done by an agent). "Comps" is short for comparative sales BTW so your post basically says "[appraisers use] the sales comparison method (AND NOT THE SALES COMPARISON METHOD)."
WTF?
Quote:
I would go one step further and say the best agents can determine market value even better than an appraiser. First, agents have a more intimate knowledge of the comps (used by both agents and appraisers to determine value Heidi ) because they've actually seen them. Any perspective home buyer will tell you that the photos and information you see on MLS only tell half the story. Most appraisers looking at comps are only seeing what's on MLS. Most agents have actually been in the house and can tell you it smells like a wet dog or has a weird floorplan. Also, agents work with buyers so they know the direction the market is headed better than appraisers. Again, appraisers are looking at comps (yes Heidi appraisers are looking at comps ) which lag behind what's actually happening in the market by months because a transaction takes months to reach fruition. Agents are in the thick of it and know what's happening right now.
Knock it off. REA's are worried about putting food on their table. Used Car salesmen is what their rep is anymore.
Quote:
Clients often over think things.
It's not YOUR 20% down, is it?
Quote:
Did you see the other thread on here where someone said another buyer did not spend much time in a house and the owner's dog recognized them therefore these people weren't serious buyers? People like to play detective or try to get inside someone else in the tranction's head. they spent more time worrying about what they were doing instead of over analyzing what the other guy is doing they'd have more success.
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) because they've actually seen them. Any perspective home buyer will tell you that the photos and information you see on MLS only tell half the story. Most appraisers looking at comps are only seeing what's on MLS. Most agents have actually been in the house and can tell you it smells like a wet dog or has a weird floorplan. Also, agents work with buyers so they know the direction the market is headed better than appraisers. Again, appraisers are looking at comps (yes Heidi appraisers are looking at comps 
