Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My house was listed two weeks ago and priced based on comps, pending and sold listings. Not priced on emotion or listed too high because I, the seller is unrealistic about home value.
No agents have mentioned to my agent that the house might be listed too high.
Okay that's out of the way. I have had about 30 showings and 6 offers. Offer is made, all lowball, then during negotiations the buyers bail and the agent says the same thing "they were in over their head they should be looking at houses at xxx price".
One offer got under contract and the buyer backed out 48 hours later, same reason.
Why are realtors bringing people to view homes they cannot afford or maybe they can but want to buy lower?
Also, one buyer told my agent that since they would have to make accommodations for their handicapped child I should lower the price to make it easier for them.
augiedogie imagines:
"I thought the earnest money that is deposited was kind of a incentive to show good faith from the buyer making the offer. That way, if the owner accepts the offer, but the buyer then changes his mind, the earnest money goes to the owner as sort of a find for the buyer not being serious with his offer."
Most contracts have a long laundry list of inspections and conditions, any one of which will allow the buyer to walk along with the deposit if the buyer finds a house he likes better. In Maine we have something called a "kick-out clause". If a qualified buyer comes along who actually wants the house the original buyer has a few days to either release the contingencies or the seller can sell to the motivated buyer.
-break-
There is an old saying in the business. The three luckiest people in real estate are the first born son, the second spouse and the third broker to list a property. It's true. I just completed 25 years in the business. When two listings have expired on the same property, the seller is probably ready to listen.
I thought the earnest money that is deposited was kind of a incentive to show good faith from the buyer making the offer. That way, if the owner accepts the offer, but the buyer then changes his mind, the earnest money goes to the owner as sort of a find for the buyer not being serious with his offer.
Not that simple. Earnest money simply shows the buyer has skin in the game.
The first (and best) buyer's out is your BINSR. That is after you've had your inspection and found issues, and you present your demands to the seller. If you find issues and decide you don't want the house, just make demands that no reasonable person would accept. I'm not sure if you can't simply opt out if you don't like your inspection irrespective of the result.
Your second opt out is the appraisal, if it comes back with issues. Again no good way out if it appraises for contract.
Your best way out is to tell your agent and finance company you want out and ask them to find a way. You hired them, they're on your side. They'll find a way if one exists.
The earnest money never goes to the seller until after you've had all your chances to opt out, and didn't. I've never heard of that happening (although I'm sure it does).
And anyway, you never make more than a reasonable earnest deposit, perhaps 1 percent. If you lose that, consider it a "stupid" tax, for jumping the gun.
I'm so sorry you're having to deal with this stress! Agents typically don't show homes to unqualified buyers...
In an ideal world no buyers agent would accept a listing at an unreasonable price. In an ideal world no seller's agent would show houses to somebody who can't afford it.
In the real world most sales agents will accept listings and let the traffic erode their client into dropping their asking price to something reasonable. Meanwhile they won't bother to do anything other than putting it in the MLS, ensure it gets in all the freebs (Trulia, Redfin) and answer the phone. Having a listing you ca reduce the price on and a client under exclusive contract is better than staring at a silent phone.
Buyer's agents have to be a bit more careful. Wanna spend 20 or 30 full days showing a prospective client a couple hundred houses? Hoping your client will hit the lottery is not a workable strategy. Not being a Realtor, all I'd say after determining how much a client can pay is, "sorry no listings in your price range this week." If they want to see listings that are unrealistically out of their class I'd suggest they book a Hollywood Tour of the Star's Homes.
But it depends on how hungry the seller's agent is. No seller's agent with a brain spends their time sitting at home watching soap operas.
I've been turned down by buyer's agents in L.A. Too bad for them. I don't want to brag but they should see the price I paid last year. I was tempted to call them and give them the MLS number and gloat, but I make a practice of not wasting my time, particularly just to make people feel bad.
I don't know where they got the idea I couldn't afford the house I bought. They never even asked to see my bank statement. They sure would have turned their head then.
p.s. Sorry guys, I've been on a buying spree. At least 80% of my cash is gone. If I have any more real estate activity I'll try my hand at flipping. Pay cash and go from there.
Require a pre-approval letter with offers, not just pre-qualified. The difference is with a pre-approval, they've had credit checked, submitted documentation, and usually had income verified, so they're stronger. They're just waiting for the property to qualify (appraise). Pre-quals are easy to get. They do a quick inquiry and ask a few questions and bam, you're pre-qualified.
I went through all that. My lender knows more about me than I do. The only thing they haven't asked for yet is a colonoscopy.
I'm glad I've never come across this book in my career! I do know some agents that practice this philosophy, though it's not encouraged at either firm I've worked with. Both are international top brand brokerages. I've always preferred to price it right with the comps so that it sells in a reasonable amount of time and my sellers are happy.
In my market, just below list almost always ends up with multiple offers bidding over list price, several times at higher than the seller originally hoped to get. They're less likely to back out over inspections or appraisals, too, if they know they've had competition with other buyers. This hasn't always been the case, and likely won't be forever, but it sure is exciting for sellers.
There's two theories:
1.) Get the exclusive contract first. If you don't have a contract you have no houses to sell. So what if the seller has stars in their eyes? Get the listing, minimal service, and wait until they get worn down by constant traffic and finally decide to accept your suggested pricing based upon comps to support it.
2.) If the market is fast (and only if the market is fast!) convince your seller to list it well below a realistic price, and count on a bidding war (also known in the marine biologist world as a feeding frenzy) and sell it in a week. If you do this I hope you educate your seller about your strategy. Again this only works in a low inventory market.
or 3.) Just set a realistic price and plod through the showings and offers until you get a winner. (This is what I wish all deals were.)
I guess that's three theories. Whatever. After 6 deals in the last two years I've had enough excitement. My last COE is this month, and I'll probably tire of discussing real estate and switch to basket weaving or making hand made soap.
I don't have an enduring love of real estate. I doubt I'll do another deal for 12-15 years.
there is an old saying in the business. The three luckiest people in real estate are the first born son, the second spouse and the third broker to list a property. It's true. I just completed 25 years in the business. When two listings have expired on the same property, the seller is probably ready to listen.
If you are over 50, get one.
Free under Obamacare.
You don't want to win the cancer lottery as I did.
You're probably right. I'll ask for that on my next appraisal. If they decline I guess I'll get it later this year via Medicare. I'll admit cancer sounds like no fun. Good thing I have no history of that in my family out to 3 generations.
. Good thing I have no history of that in my family out to 3 generations.
My parents are 91. No cancer. Me, waited til Medicare and won the cancer lottery.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you are over 50
