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Old 08-11-2013, 08:40 PM
 
1 posts, read 1,844 times
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In March in Texas I was in the market to buy a house because the lease on the rental property where I stayed was ending and the landlord would not extend. I bid on a house that was a bit high priced through a realtor. We provided bank statement as proof of our ability to purchase. However the deal fell apart because my spouse decided not to purchase.

We then bid on a lower priced house. My sneaky realtor used the bank statement from the higher priced house to make the offer. As a result the seller would not negotiate a lower price. When I asked the reator to show me other lower priced house, he said the construction was not good. He would not even provide me comparables of other houses in the area.

In the end I ended up paying a higher price because I had a deadline. Is there anything I can do about this realtor?
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Old 08-11-2013, 09:30 PM
 
118 posts, read 363,457 times
Reputation: 93
I don't think so. Maybe just talk to the broker... but I don't think it will do good because the higher the sales price, the higher the commission which means the more money they bring to the broker.

I had a realtor do that to me. I got so mad. We had a pre approval letter for a different house of let's say $100, then we saw a cheaper one and I told her let me get a different letter for the lesser amount of $80, well she submitted the offer with the one of $100 for the $80 house.

I even told her why would she do that because they bank will now see we've been pre approved for more so why would they lower their price.... she said it didn't matter. I told her, oh I think you're quite mistaken. I made her send the correct one in. But that deal fell through, thank God.
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Old 08-12-2013, 05:19 AM
 
Location: Lakewood Ranch, FL
5,048 posts, read 7,362,279 times
Reputation: 5826
Although I agree that your agent should not have provided any personal info without first asking you, with all due respect, I have the opposite opinion about this notion that letting a seller see that you are qualified for a larger loan, or that you have more than enough cash to purchase, is akin to telling them that they can get more out of you. Just because you are able to pay more doesn't mean that you are willing to pay more. In fact, I think demonstrating that you have the ability to pay more but won't, makes you appear stronger, not weaker.

Agents don't determine the price you offer for a property. That is your choice and you should never allow an agent to bully you into offering more than you want. That's not to say that you should ignore the market analysis the agent provides. Making offers that are clearly out of the range of the market information provided is almost always going to be a waste of your time, a waste of your agent's time, and a good way to turn off the seller to any other conversation.
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Old 08-12-2013, 05:24 AM
 
Location: NJ
17,579 posts, read 37,390,471 times
Reputation: 16071
So you think if you told the seller here is my final offer (a lower amount) he would just walk away from the deal because of the letter? That doesn't sound reasonable. You honestly have no way of knowing how much the seller was willing to negotiate with or without the letter.

Having said your realtor certainly should not have given the letter if that is not what you wanted. Perhaps there was confusion and the realtor thought after you gave it the first time you would give it again. By me it is customary to give some kind of pre-approval with your offer. Did you have another one to give?
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Old 08-12-2013, 05:53 AM
 
Location: Bloomington IN
5,283 posts, read 6,642,028 times
Reputation: 12611
Did you provide the agent with a new letter indicating a lower dollar amount?
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Old 08-12-2013, 06:29 AM
 
Location: Wonderland
38,533 posts, read 30,614,288 times
Reputation: 53513
I don't think the letter made any difference. So what if you're qualified to buy "more house?" That is not what determines the value of any house. IF the seller thought this (and how do you know that was the thought process involved?) then he or she is, frankly, an idiot. I wouldn't blame that on the realtor.

Honestly, I gave my realtor a pre approval letter she has on file to submit with any offer we make. We're pre approved for about DOUBLE the price range we're looking in. So what? That's pretty standard practice. And I want to let the sellers know that there will be NO PROBLEM for us to buy their house - we're already pre approved for double their house, so to speak. No squeaking by on a wing and a prayer here.

I think your bigger problem is that you and your realtor do not seem to be communicating well. Have you signed a buyers' agent agreement with this realtor? If not, you can interview some other realtors to find one who may be a better fit for you. Have you sat down and discussed your goals with the realtor you've been using? He may be right about the construction of some other homes - Texas is full of poorly constructed McMansions, especially in metro areas. I mean, so many of them are pure crap - they're like cracker boxes they're so flimsy. Maybe your realtor has an aversion to those sorts of homes. That being said, your realtor should be listening to what YOU want - not trying to steer you to what he thinks you want. It sounds to me like you and your realtor are not on the same sheet of music at all - though neither of you may be "wrong."

I don't think the pre approval letter is the issue at all.

Last edited by KathrynAragon; 08-12-2013 at 06:54 AM..
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Old 08-12-2013, 07:50 AM
 
4,430 posts, read 7,656,640 times
Reputation: 6305
Why the heck are you giving your realtor bank statements!!!??? If your realtor is asking you to provide proof, you give them a letter from your mortgage broker or bank saying you're pre-approved.

If you're buying foreclosures for cash all you need to do is ask the bank for a letter stating ... "as of xx/xx/xx at 1pm, Mr John Doe has funds available of $32,000 in accounts with bank of america made payable to seller name. " With $32k being your offer.

DO NOT list all the money you have in your account, just the ability to pay cash for the offer price.
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Old 08-12-2013, 08:17 AM
 
Location: Wonderland
38,533 posts, read 30,614,288 times
Reputation: 53513
Quote:
Originally Posted by 399083453 View Post
Why the heck are you giving your realtor bank statements!!!??? If your realtor is asking you to provide proof, you give them a letter from your mortgage broker or bank saying you're pre-approved.

If you're buying foreclosures for cash all you need to do is ask the bank for a letter stating ... "as of xx/xx/xx at 1pm, Mr John Doe has funds available of $32,000 in accounts with bank of america made payable to seller name. " With $32k being your offer.

DO NOT list all the money you have in your account, just the ability to pay cash for the offer price.
Right on.
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Old 08-12-2013, 10:53 AM
 
Location: California
4,325 posts, read 4,965,170 times
Reputation: 8825
Quote:
Originally Posted by 399083453 View Post
Why the heck are you giving your realtor bank statements!!!??? If your realtor is asking you to provide proof, you give them a letter from your mortgage broker or bank saying you're pre-approved.

If you're buying foreclosures for cash all you need to do is ask the bank for a letter stating ... "as of xx/xx/xx at 1pm, Mr John Doe has funds available of $32,000 in accounts with bank of america made payable to seller name. " With $32k being your offer.

DO NOT list all the money you have in your account, just the ability to pay cash for the offer price.

Well stated! In a commission driven sales business, having a lawyer in your corner is a good idea also.

Like other posters stated, you determine your offer price, whether the buyer wants to negotiate is their choice. The sales people only fill out the forms at the direction of the parties.

There is probably nothing you can do about the sales person, other than learn to protect your information.

Thanks for sharing so others can learn also and best of luck to you.
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Old 08-12-2013, 12:41 PM
 
Location: South Austin
202 posts, read 275,584 times
Reputation: 94
Quote:
Originally Posted by 399083453 View Post
Why the heck are you giving your realtor bank statements!!!???
Probably because this person was under the mistaken impression that the realtor was working with their best interests in mind and would want to minimize the sale price rather than maximize it.
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