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how to find if an auctioned house isn't trashed and has back taxes owed that cost more than the house itself? Is there a "kelley blue book" for houses? So I know if the title is clean and not salvaged (as some cars are known to have a salvaged title, not sure if houses follow the same ways). Should I google the tax and land assessment on the house to find out the gist of the house? While I did see the house from the windows and it looks fine on the surface but I'd be curious if the mechanics of it are working (pipes, drain, sewage, water, electricity, etc.). Electricity I know works because the light is always on the porch so that way no one would break in the house knowing it looks empty.
Buying a house at an auction is kind of like buying a car at an auction. You take a lot more risks, are afforded less due diligence and hope to get a better deal.
And get paid more when the selling price is higher, even if representing the buyer. "Just sayin."
Yea, but they don't sell at the higher price. They sit on the market and they get the "WWWTH" disease. (What's wrong with that house?") Generally speaking, the first two weeks of a home being on the market are the best. If it is competitively priced in a warm or hot market, it should sell by then. Keyword: "Competitively priced."
You seem to forget that buyer's agents are also realtors and they will not encourage their buyers to buy an over priced house. In fact, for those financing, those homes may have been priced above the search criteria.
Overprice a house by $10K and it will most likely sit there or attract offers well below the list price. If the house is overpriced by $10K and it sells, the Realtors would each make a whopping $300 each if commissions are 3% for each. The extra time it's on the market will cost the agent more in terms of wasted time and marketing budget.
Nearly all Realtors would rather price it accurately and sell it in a few days, then go on to the next house.
Now, are houses overpriced? All the time, but that's not the motive. It's the seller insisting on a higher price (which is why you'll see the price reduced two weeks later because there's no traffic. Or, it's the inexperience of the agent, especially if there are few or no comps. Or the agent wants to get leads off of his/her yard sign.
The majority of agents I know and have done deals with would rather price it right, sell it and move on to the next. Buyers agents are the same way.
And get paid more when the selling price is higher, even if representing the buyer. "Just sayin."
If the house sells at that price, it's not too high. It's the right price. That is the definition of market value.
If a house is overpriced it doesn't sell. Or if a buyer does want it, it fails in appraisal. If we overprice a house, we have to fool a lot of people to actually get that price.... Not just buyers... other realtors, the appraiser, the bank...
In my experience it is sellers, not realtors, who tend to overprice houses. They've got an idea what they want or need to get out of the house, and they don't want to leave money on the table. I don't blame them... But... The only value that matters is what others value the home at... not the seller... not the seller's realtor.
Most realtors would usually much rather have right-priced listings that sell in days, than overpriced ones that sit on the market months, continuing to cost money in time and advertisement. Yes, really.
If the house sells at that price, it's not too high. It's the right price. That is the definition of market value.
If a house is overpriced it doesn't sell. Or if a buyer does want it, it fails in appraisal. If we overprice a house, we have to fool a lot of people to actually get that price.... Not just buyers... other realtors, the appraiser, the bank...
In my experience it is sellers, not realtors, who tend to overprice houses. They've got an idea what they want or need to get out of the house, and they don't want to leave money on the table. I don't blame them... But... The only value that matters is what others value the home at... not the seller... not the seller's realtor.
Most realtors would usually much rather have right-priced listings that sell in days, than overpriced ones that sit on the market months, continuing to cost money in time and advertisement. Yes, really.
Buyers can be talked or pressured into paying a higher price, thats not market value. Its in the best interest of the realtor to sell at a higher price. You can talk integrity all day long but if there is a systemic best interests issue then you can only justify YOUR OWN ethics.
Yea, but they don't sell at the higher price. They sit on the market and they get the "WWWTH" disease. (What's wrong with that house?") Generally speaking, the first two weeks of a home being on the market are the best. If it is competitively priced in a warm or hot market, it should sell by then. Keyword: "Competitively priced."
You seem to forget that buyer's agents are also realtors and they will not encourage their buyers to buy an over priced house. In fact, for those financing, those homes may have been priced above the search criteria.
Overprice a house by $10K and it will most likely sit there or attract offers well below the list price. If the house is overpriced by $10K and it sells, the Realtors would each make a whopping $300 each if commissions are 3% for each. The extra time it's on the market will cost the agent more in terms of wasted time and marketing budget.
Nearly all Realtors would rather price it accurately and sell it in a few days, then go on to the next house.
Now, are houses overpriced? All the time, but that's not the motive. It's the seller insisting on a higher price (which is why you'll see the price reduced two weeks later because there's no traffic. Or, it's the inexperience of the agent, especially if there are few or no comps. Or the agent wants to get leads off of his/her yard sign.
The majority of agents I know and have done deals with would rather price it right, sell it and move on to the next. Buyers agents are the same way.
The bolded is a sweeping, idealistic comment. The buyer's agent does not get paid if the house is not sold but takes money out of his own pocket if he negotiates a lower price.
Market value is what buyers want to pay and sellers will accept. Backed by others who also have to agree, like lenders and their appraisers. It's not ethics as much as it is being practical. Over-pricing listings will make a realtor go broke. We make nothing if no one wants to buy.
Another aspect to this "agents are only out for themselves" argument is the appraisal. I've yet to meet a buyer with cash who wanted to pay more than the last comp and none of them want to pay the asking price or take an agent's opinion on the price (and they shouldn't.) They want to see the data and, in many cases, they want to see where the data come from. So, for cash buyers, this scenario doesn't exist.
For buyers who are using a loan, the property pretty much still needs to appraise and the agent has nothing to do with the appraiser's valuation although agents can make suggestions on comps and provide detailed information that might not be readily available to the appraiser. So, again, for borrowers, there is another check and balance.
Finally, all the nay-sayers can continue to believe what they like but agents survive on referrals. Getting people to sell for too little or pay too much isn't a very successful way of obtaining referrals. A new agent might try that but not for long; an experienced agent understands and sees the big long-term picture.
Another aspect to this "agents are only out for themselves" argument is the appraisal. I've yet to meet a buyer with cash who wanted to pay more than the last comp and none of them want to pay the asking price or take an agent's opinion on the price (and they shouldn't.) They want to see the data and, in many cases, they want to see where the data come from. So, for cash buyers, this scenario doesn't exist.
For buyers who are using a loan, the property pretty much still needs to appraise and the agent has nothing to do with the appraiser's valuation although agents can make suggestions on comps and provide detailed information that might not be readily available to the appraiser. So, again, for borrowers, there is another check and balance.
Finally, all the nay-sayers can continue to believe what they like but agents survive on referrals. Getting people to sell for too little or pay too much isn't a very successful way of obtaining referrals. A new agent might try that but not for long; an experienced agent understands and sees the big long-term picture.
Recent auction of house seized for non-payment of taxes just got "market" value (auctions sure can be useless if you're thinking "bargain."). I know from the locals (but not known to bidders) that $5400 of back association fees are owed and due upon occupancy. Utilities won't be reconnected if association fees are not paid. Also, I know personally, the A/C is non-operable (hasn't been for years), and a water flood (a few years ago) has wrecked much of the subfloor. There is over $10,000 of stuff to be paid above the auction price. But the place was locked up. Nobody allowed inside. Somebody, probably unknowingly, got a lemon.
Be careful with these auctions. This place went for at least $25,000 above what it's actually worth.
Last edited by TwinbrookNine; 05-31-2016 at 02:58 PM..
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