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I was hoping that someone might be able to shed some light on any options that I may have in the following situation:
My husband and I are interested in a house. We put an offer in (with the help of our agent) and after some back and forth on the negotiations, we decided we needed to walk away. Fast forward a couple weeks, and we realized that that house was as good as we were going to be able to do for that amount (our mistake in the first place), and we asked our agent to check into the possibility of the seller being willing to revisit his last offer with us. Apparently he then checked with his banker and "doesn't have the money" he thought he might have to be able to get into another house. His contract with his listing agent expires tonight at midnight, and we have a feeling he's waiting out that contract and going to try selling by owner (to avoid realtor commissions). Do we have any options if he does do this and we want to try to get this house? I'm assuming the listing agent has a clause that would entitle her to something since we originally looked at the house while under her agency. There's also not really any way that we feel we can do anything without our agent after all she has done for us. I feel sooooooo stuck!! Are we screwed out of this house because of this??? I am currently living in a two bedroom apartment with my husband and 4 kids . . . we need a house. :/ Help me!!
Yes I am sure that the listing agent has a clause protecting their commission. Can you afford to pay part of your real estate agents fee to cut the costs to the seller?
I would think there is a hold over clause in the listing agreement. The correct order would be for your agent to contact the lisiting agent and communicate your interest in re-visiting the last offer/counter. This is actually something that happens all the time. It's really best to do it as I outlined rather than have anyone face a ethics complaint and/or mediation over commissions after the fact.
Best wishes.
I would think there is a hold over clause in the listing agreement. The correct order would be for your agent to contact the lisiting agent and communicate your interest in re-visiting the last offer/counter. This is actually something that happens all the time. It's really best to do it as I outlined rather than have anyone face a ethics complaint and/or mediation over commissions after the fact.
Best wishes.
This is what we have just done over the last several days (our agent contacted the listing agent). The seller seemed fairly interested in revisiting, but after checking with his banker, decided against it. The last counter was approximately 7% under listing price.
As far as the first comment is concerned, we actually do not have the extra funds to pay any extra commission, as the price is already a bit higher than we were intending to go. :/ I just hate to think that he might be willing to sell for that price, just without realtor's commissions, and we've lost out because we've been using realtors.
Did you get any specific feedback that Realtor commissions are the issue?
It's also likely he did not initially understand how large his loan payoff would be, and your offer won't be enough to cover it and/or have money left over for his next purchase. Hard to say if the commissions would make any real difference.
This is what we have just done over the last several days (our agent contacted the listing agent). The seller seemed fairly interested in revisiting, but after checking with his banker, decided against it. The last counter was approximately 7% under listing price.
As far as the first comment is concerned, we actually do not have the extra funds to pay any extra commission, as the price is already a bit higher than we were intending to go. :/ I just hate to think that he might be willing to sell for that price, just without realtor's commissions, and we've lost out because we've been using realtors.
Thanks for your insights!
Any other thoughts??
You would probably not know about this house without REALTORS, the listing agent marketed it successfully to your agent or you, who connected you and the seller and spent hours with you on showings, offers and counter offers. That is the easy part, the real work starts after you go under contract keeping the deal together through inspections and re-negotiations, appraisal and possibly re-appraisal, underwriting, title search, final walk through (and possible re-negotiation) all the while being with you every step of the way while the listing broker is doing the same for the seller. Meanwhile nobody gets paid until closing.
The seller is a big boy, he should have known what his net proceeds would be before he listed and as he rode the market down, what that was doing to his net proceeds. His agent needs to let him know that while his house will net less than he would like, the house that he buys will be in the same position. You have to look at both transactions. Perhaps he will lose money on this house, it's happening everywhere, but he can make it up and then some with a good buyer's agent. Maybe your agent has to educate his agent. Most people would be happy if they make money on 7 out 10 stock trades, but it seems that everybody wants to make money on every single real estate transaction and that's not going to happen.
[quote=WhoFanMe;13012416]You would probably not know about this house without REALTORS, the listing agent marketed it successfully to your agent or you, who connected you and the seller and spent hours with you on showings, offers and counter offers. That is the easy part, the real work starts after you go under contract keeping the deal together through inspections and re-negotiations, appraisal and possibly re-appraisal, underwriting, title search, final walk through (and possible re-negotiation) all the while being with you every step of the way while the listing broker is doing the same for the seller. Meanwhile nobody gets paid until closing.
I whole-heartedly agree, and I hope no one thinks I was "dissing" on any Realtor. We have been happy to work with a Realtor, and I would not want to be going through this process without one . . . I'm just sad if it's going to cost me a house that would be perfect for our family simply because the other guy isn't happy in his money situation. (By the way, he's had the house listed for a year . . . two 6 month contracts with 2 different Realtors).
Not at all and what you've told me about the seller doesn't surprise me in the least. In the year that he's wasted with his house not being properly priced he's probably acted as a loss leader and sound many other houses around him. Your agent can show you this.
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