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Just a quick jumping in here...A Realtor is required to submit any and all offers to his Seller Client...no matter how silly they may seem!
Yes, all written offers must be submitted to the seller, with the exception that if the seller has instructed the agent (also in writing) not to submit offers below a certain point, then the agent has to follow the instructions of their client, the seller.
Is a realtor required to submit 10 diff offers on 10 diff houses, like needafforadable home suggested? I would think not, so unethical at best! And I'm curious, if so, how does one come up with a respectful amount of earnest money for 10 diff houses? That's some cash flow! Any agent who would allow this is completely sliding away from the ethics of their job. And I can't imagine finding 10 houses that all fit the same criteria, only to seek the one that is the cheapest. Unbelievable, this mentality! And you wonder why so many blame the "buyers" for this real estate mess, us included!!!!!
I'm a little bit confused about this one. Are you saying that if one buyer wants to make offers on ten different homes at the same time, hoping one will stick, is the real estate agent required to submit them? Well, yes, but I would STRONGLY recommend to any buyer I represented that they not do such a thing for their own sake (they could, after all, have 5 sellers all agree to their offer and sign and they'd find themselves legally obligated to buy all five houses, not a pleasant position to be in for most folks). If I had a buyer that insisted on that game, I'd likely release them from their buyer's rep with me.
As for the earnest money, while negotiable, around here it's usually approximately 1% of the offer price, and the check is written to the title company, NOT the seller, and is not cashed (or, for that matter, given to the title company or the seller's agent) until there is a contract that has been agreed upon and all parties have signed off on it. At that point, the earnest money AND the contract go to the title company and the title company receipts the check and deposits it into an escrow account until closing or the contract falls through.
I have gone back and read all 8 pages and I now have a question on how these offers work off of the info gathered. When you say you look to see what the seller paid, ect. to base your price, well how can that justify the offer. I actually had this argument with a "gentlemen" not long ago on his offer. For instance if you pay say 100k for a house 10 yrs ago, way under appraisal, you then do all the updates, bring it up to code ect. Now the cma say it is worth 250k are you saying that because I only paid 100k then I should be happy with an offer of 125k???? To me it doesn't make any difference what the seller paid for his house it is what the value is at the time I am buying. And no I don't look at appraisal right now just the local mkt. prices. Please explain this to me.....
Just a quick jumping in here...A Realtor is required to submit any and all offers to his Seller Client...no matter how silly they may seem!
Yes, all written offers must be submitted to the seller, with the exception that if the seller has instructed the agent (also in writing) not to submit offers below a certain point, then the agent has to follow the instructions of their client, the seller.
Is a realtor required to submit 10 diff offers on 10 diff houses, like needafforadable home suggested? I would think not, so unethical at best! And I'm curious, if so, how does one come up with a respectful amount of earnest money for 10 diff houses? That's some cash flow! Any agent who would allow this is completely sliding away from the ethics of their job. And I can't imagine finding 10 houses that all fit the same criteria, only to seek the one that is the cheapest. Unbelievable, this mentality! And you wonder why so many blame the "buyers" for this real estate mess, us included!!!!!
I'm a little bit confused about this one. Are you saying that if one buyer wants to make offers on ten different homes at the same time, hoping one will stick, is the real estate agent required to submit them? Well, yes, but I would STRONGLY recommend to any buyer I represented that they not do such a thing for their own sake (they could, after all, have 5 sellers all agree to their offer and sign and they'd find themselves legally obligated to buy all five houses, not a pleasant position to be in for most folks). If I had a buyer that insisted on that game, I'd likely release them from their buyer's rep with me.
As for the earnest money, while negotiable, around here it's usually approximately 1% of the offer price, and the check is written to the title company, NOT the seller, and is not cashed (or, for that matter, given to the title company or the seller's agent) until there is a contract that has been agreed upon and all parties have signed off on it. At that point, the earnest money AND the contract go to the title company and the title company receipts the check and deposits it into an escrow account until closing or the contract falls through.
Or am I misunderstanding you entirely?
You understood and answered perfectly, Thank you. I realize earnest $ does not get cashed/deposited, I guess I was thing of the same sceneraio you suggested- multiple offers drives more possibility of acceptance- especially signed contracts. I still think this is a "tacky" game, at best, when an agent is willing to get involved in an approach like this one and glad to see you would release yourself if you had a client like this. That's what I meant by "ethics". Again, thanks for clarifying.
I will make a low ball offer. If the seller is offended and doesn't counter offer..too bad...I believe you should always counter offer...My husband & I have decided to find a house that will meet our needs & NOT to fall in love with it...We planned on having 3 homes lined up before making ANY offer that way if we can't get the house for what we are WILLING to pay we'll just go to the next one ..My offer would probable start off at 25,000 to 30,000 off the asking price. I will also find out how much the owners paid for the home & how long they lived there.
In my area the houses are way overprice & sitting..For some reason these people think they still can make a huge profit off there house in a buyers market....To me they are making a major mistake...I have seen many homes that were sale now being offered as rentals ...Even trying to rent out their homes they are NOT succeeding.... We have plenty of rentals to choose from...To me it's critical to price your house right for the market the longer your house sits the harder it will be to sell....I have seen homes reduced from 70,000 to 20,000 after being on the market for 6 months. . I have also seen homes that were priced right and sold within 5 days..
I just read some of the post here...As for myself as a Buyer .. I will NOT go back to ANY seller who declined my offer. Just because I make a low ball offer doesn't mean I can't afford your house. Some people live below their means.
As far as what the seller paid for the house. I do take that into consideration It tells me how much they can negotiate. I not there to steal your home from you but I not there to get rip off either.
To me anyone who buys a home in this market is taking a gamble.So the buyer needs to get a good price on the home if they choose to buy. It's pretty bad when people can't even get a equity loan on their house because the banks are worried about the market. So as seller if you NEED to sell your home be prepared for low ball offers otherwise you best bet is to wait until the market recovers.
I don't low ball. But I do search explicitly for homes that I believe are "right priced". In other words, below the presumed value.
There are too many homes out there over $300k when the seller knows full well that they should be folding their cards at around 50-75% of that. Problem is a lot of areas are considered "lucrative" areas and are not inclined to drop value - a big mistake IMO. I don't even put offers in when I see that.
If it's "right priced", I'll put my offer in right at asking, with concessions. If they don't take it, I move on.
Of course, ever since we decided to focus on foreclosures, I've noticed much better pricing.
Location: Pittsburgh--Home of the 6 time Super Bowl Champions!
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Quote:
Originally Posted by pghquest
No one is stealing your home from you, except maybe the bank when they have to foreclose. What, you can pay the payments on the home till it sells? Great, many cant and I can move onto the next desperate home seller, you can continue to make the mortgage payment.
When someone is offering me 50% of my asking price, that is STEALING! The bank will NOT forclose on my home, I will continue to stay in Pittsburgh until my house sells, then I will move!
You just proved my point with the statement "many can't and I can move onto the next desperate home seller. You in fact as a realtor are just as guilty....Hey whatever makes you sleep at night... But I can guarantee one thing...NO-ONE will be buying my house for 50% of the asking price!!
When someone is offering me 50% of my asking price, that is STEALING! The bank will NOT forclose on my home, I will continue to stay in Pittsburgh until my house sells, then I will move!
You just proved my point with the statement "many can't and I can move onto the next desperate home seller. You in fact as a realtor are just as guilty....Hey whatever makes you sleep at night... But I can guarantee one thing...NO-ONE will be buying my house for 50% of the asking price!!
Agree! and what I paid for my house 12 years ago has NOTHING to do with what I will accept today. Some buyers take a loss, some make a profit. Actually, considering all the interest paid.......anyway, lowballing doesn't work in my area. Once buyers realize that, if they still want to live here, they will have to increase their offers. You can line up 100 houses to bid on; that doesn't mean a seller will accept. Not every seller is desperate.
I am offended when the seller expects to sell their home for double, and triple what they paid for it in 2000.
I also don't care if a seller is not in a position to negotiate, that is not my worry or concern on what they owe the bank.
This is why I will ONLY buy a REO property for .43 cents on the dollar, even at that price I fear over paying in this tanking market.
I am curious as to where you are finding anything valued @ .43 cents on the dollar. You are the most disillusioned poster I have read yet! OK, you keep searching. Have you found it yet? I am sure we would all like to know. And if so, what kind of a mess came with it!! I can assure you, no one is listing and trying to sell for even near double, let alone triple, of what they paid in 2000, even though it's 2008. So do you think a house should not appreciate, based on what other posters listed; ie, updates, remodels, location and stability of area, etc? What if it's for sale at about 40% more than paid, 8 years ago. In other words, paid 300g then, selling for 420g now. And this is not counting what sellers have put in it over the last 8 years or real estate commisions. Do you think that fair? Just curious what a mind like this thinks and if it's working. Thanks.
I am curious as to where you are finding anything valued @ .43 cents on the dollar. You are the most disillusioned poster I have read yet! OK, you keep searching. Have you found it yet? I am sure we would all like to know. And if so, what kind of a mess came with it!! I can assure you, no one is listing and trying to sell for even near double, let alone triple, of what they paid in 2000, even though it's 2008. So do you think a house should not appreciate, based on what other posters listed; ie, updates, remodels, location and stability of area, etc? What if it's for sale at about 40% more than paid, 8 years ago. In other words, paid 300g then, selling for 420g now. And this is not counting what sellers have put in it over the last 8 years or real estate commisions. Do you think that fair? Just curious what a mind like this thinks and if it's working. Thanks.
The homes that I have been tracking have sold at .50 cents on dollar from the JUDGEMENT amount, these are all REO properties.
All homes in zip code 33470, 33412 florida.
As far as being disillusioned, I can assure you that I am most certainly NOT.
I am extremely up to date with what is currently happening in the market of Southern Florida.
Just for kicks here is an example here is a .55 deal that was NOT even a foreclosure deal.
Your argument is not valid or understandable, people ARE trying to sell their homes for double, triple and beyond what they paid for them before the bubble.
Most of the effort that the owners put into these homes were simply living in them and NOT improving them like you have tried to point out.
My argument is NOT about those ones.
I am talking about values increasing due to speculator run up, hype, and greed, lies by the NAR, FAR and FED.
As far as your cheap shot and personal attack, I forgive you, I know it must be hard to see the truth spelled out for you.
There are seven stages to grief :
Shock or Disbelief
Denial
Bargaining
Guilt
Anger <-------I believe you are here.
Depression
Acceptance and Hope
Just for kicks here is an example here is a .55 deal that was NOT even a foreclosure deal.
We are almost back at 2002 pricing in that zip code. This is a BEAUTIFUL neighborhood with homes built by Divosta. There was NOTHING wrong with the home that sold for 270,000 except that it should NEVER had sold for 491,000 in the first place.
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...no matter how silly they may seem!
