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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 $20,000 above what it's actually worth.
Auctions are normally a good indicator of an actual value.
The people that are making all-cash purchases are normally extremely savvy, do their research, and don't pay a dime more than a house is worth.
Sure, you get that odd-ball in there occasionally that drives the price up, and it seems like that's the case in the house you're talking about.
Most real estate agents I know are right up there with some of the worst lawyers I know when it comes to integrity.
Would you trust a used car salesman with pricing a used car that you're interested in? Or would you trust the industry standard?
Trusting a real estate agent when it comes to pricing is foolish.
is the real estate agent going to overprice the seller's home, or underprice the seller's home?
Also, how many homes have you written offers for, where you could tell what the agents integrity might be, or not? Or is it a small sample you're referring to when you say "most r/e agents I know"? just wondering
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.
In regard to the bolded, what legal manipulation can effect this? Are the utility companies somehow beholden to the HOA?
And get paid more when the selling price is higher, even if representing the buyer. "Just sayin."
A buyers agent by law, represents the buyer, and by law must be honest with them. If it is proven they were not, they will lose their license, and can face a big fine by the state and a big judgement for the buyer.
So what's the best way to get a guarantee? A new house? Of course? What's the next option? Build my own? 3rd option? Foreclosures? Short sales? FSBO?
Quote:
Originally Posted by JONOV
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.
Most real estate agents I know are right up there with some of the worst lawyers I know when it comes to integrity.
Would you trust a used car salesman with pricing a used car that you're interested in? Or would you trust the industry standard?
Trusting a real estate agent when it comes to pricing is foolish.
Much of this is, regrettably, true, because the typical real estate agent has no formal training in how to value real estate. Believe it or not, it is not a significant issue in agent training. There is lots of training with respect to customer service and how to get new business, but little training in valuation, law, housing construction and inspection, and the like. And when there is some appropriate training, it is usually optional, often given at a brief meeting, is not rigorous, and almost never contains testing or measurement of retention.
So although I wish this were not true of my profession, it is in fact true and the typical buyer should be very careful who they select to represent them.
A buyers agent by law, represents the buyer, and by law must be honest with them. If it is proven they were not, they will lose their license, and can face a big fine by the state and a big judgement for the buyer.
How would a buyer prove to a court that his agent was somewhat less than energetic in negotiating a reduced price and therefore, a reduced commission?
How would a buyer prove to a court that his agent was somewhat less than energetic in negotiating a reduced price and therefore, a reduced commission?
Shhhh! You're messing up the 30+ year old real estate scam that's been going on in this country.
In short, they can't. The system is rigged.
That's the major problem. Buyer's agents are "supposed" to do the right thing. But, they're businessman. They don't do this out of the goodness of their heart. Real estate also attracts some of the most unscrupulous do-nothings on the planet.
Both the buyer's agent and seller's agent have it in their best interest to sell a price for the highest amount possible.
Nobody looks out for the buyer. It's up to them to do their own research, know a fair price, not be bullied by "seasoned industry veterans" and the typical games they play(withholding inventory, causing intentional price wars, not sharing offers with sellers, "overprice and trickle reduce" selling tactics, etc).
Unfortunately, 2006 taught us(and realtors) that most people are stupid, will believe what they are told, and pay whatever amount the bank will give them.
There are a few agents out there with integrity that will fight for a fair price, but good luck finding them.
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