Making an offer to buy - what is the local practice? (condo, house)

[bentlebee]

If you want to do the searches your self and you don't want advise then you can do it on your own. If you want some one else helping you with searches for the house of your dreams, then you can get the help of a buyers agent.

The buyers agent will go with you for every showing so you have the same person on your side and you don't have to deal with the sellers agent your self.

The buyers agent is paid by the seller when the sellers agent and the buyers agent are going to split the commission. If you don't have a buyers agent, the sellers agent will keep the entire commission to them self (after split with the brokerage and other costs)....

[HughMcs]

I want to thank all of you that responded to my inquiries. I spoke with a local Real Estate agent in NY. He told me that most states (unlike NY) don't use lawyers in non-commercial real estate transactions. He said that the agents draw up a standard contract for sale and that the title company does all the pro-rating. In fact he said that the process is a lot smoother without the lawyers. I guess the saying "your never too old to learn something new" applies to me in this case.

[Ga Jerk]

Originally Posted by TampaKaren

There's a huge difference in ridiculously low asking prices fabricated to solicit offers and the asking prices priced so far above recent sales that they would never appraise. Both exist simultaneously, sometimes in the same neighborhood.

How can sellers offer a property for sale at a low price and not accept an offer at that price?
In Georgia the listed price is an offer to sell at the price. If someone agrees to purchase the property at the listed price there is a legally enforceable contract.
I learned this the hard way several years ago when we listed a home at the wrong price (we had several neighborhoods under construction, mistakes happen).

[Pragmaticus]

In principle, that should attract a multiple offer--and drive price up by demand. Happened to us in Summer more than once. I was preparing to submit an offer below asking and somebody came along and offer 5% more than asking beating everybody for one house we were looking. I just said are they nuts and moved on. They only know what value that house has for them. Another short sale I even kind of knew that was priced well and contemplating on offering the list price. We didn't do it because my wife thought it was small. I saw that house closed 10% more than asking price. So, even if we put offer we might have been rejected. So, yah it happens that houses may be listed below market (if there is such thing untill transation is completed) and will attract multiple bids.

[TampaKaren]

Originally Posted by Ga Jerk

How can sellers offer a property for sale at a low price and not accept an offer at that price?
In Georgia the listed price is an offer to sell at the price. If someone agrees to purchase the property at the listed price there is a legally enforceable contract.
I learned this the hard way several years ago when we listed a home at the wrong price (we had several neighborhoods under construction, mistakes happen).

This is a common misconception and it's perfectly legal; there's no law against it. A seller can sell to whomever they choose. You know HUD? They've been doing it for years as a sealed bid process. They accept the offer with the highest net to the seller. And auctions? Same principle, but usually an open bid process.

[Ga Jerk]

Originally Posted by TampaKaren

This is a common misconception and it's perfectly legal; there's no law against it. A seller can sell to whomever they choose. You know HUD? They've been doing it for years as a sealed bid process. They accept the offer with the highest net to the seller. And auctions? Same principle, but usually an open bid process.

Apples & oranges.
There is a difference between an auction and an offer to sell at a stated price.

[Ga Jerk]

Originally Posted by MeInDenudinFL

In principle, that should attract a multiple offer--and drive price up by demand. Happened to us in Summer more than once. I was preparing to submit an offer below asking and somebody came along and offer 5% more than asking beating everybody for one house we were looking. I just said are they nuts and moved on. They only know what value that house has for them. Another short sale I even kind of knew that was priced well and contemplating on offering the list price. We didn't do it because my wife thought it was small. I saw that house closed 10% more than asking price. So, even if we put offer we might have been rejected. So, yah it happens that houses may be listed below market (if there is such thing untill transation is completed) and will attract multiple bids.

This makes sense.
If the seller is presented with the offers in the order they are received and accept-reject-counter the offers I can see how the process works.
I have never seen the lowball list price tactic used here in Georgia and I got my RE license in 1982 and own a RE Brokerage, Home Building Company & a RE Development Company.

[TampaKaren]

You really should consult an attorney. Maybe I'm just not communicating effectively. A seller can ask any price they want; it's their house. Maybe you are referring to that point after a purchase contract is ratified by both parties' signature. Either may not just change their mind about the sales price at that point because a fully executed contract is legally enforceable.

Short story: In early 2006, I worked with a seller that wanted to ask $150K for a little house in very good condition. Recent comparables indicated the list price was too high and we talked about a price reduction should no one make an offer. Well, after 122 phone calls, 83 showings and 7 full price offers in 11 days, I conceded. On one of the offers, the seller had a personal problem with the agent who delivered the contract. The seller rejected the offer and told me he would withdraw the house from the market first. I consulted with Florida legal and they confirmed the seller was correct and he could sell to whomever he wanted at whatever price he wanted. In the end, he countered the offer he liked best and closed.

[chi_tino]

Originally Posted by HughMcs

Why would I need to hire a buyer's agent. What service could I get from him that I won't get from a title search, home inspection and an attorney that would protect my interest.

Free money.

Buyers are allowed to receive a cut of their agent's commission. Under Florida Rule 61J2-10.028 of the Florida Real Estate Commission (effective 12/30/1997): "The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes."

Find an independent (non-chain) real estate agent and tell them that you've located a house you'd like to buy. Tell them that you would like to hire them to handle your paperwork, and in return, you would like 1/2 of the buyer's agent's commission (1/2 of 3%, or 1.5%).

This is completely legal in Florida and before I got my own license, this is how I bought investment properties. You will get 1.5% back at closing, either listed on your HUD or via check from the agent's broker.

Any agent that tells you that this is not allowed or illegal is not only wrong, but violating Florida state laws that prevent licensed real estate sales agents from lying to current or potential clients.

[Pragmaticus]

Originally Posted by chi_tino

Free money.

Buyers are allowed to receive a cut of their agent's commission. Under Florida Rule 61J2-10.028 of the Florida Real Estate Commission (effective 12/30/1997): "The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes."

Find an independent (non-chain) real estate agent and tell them that you've located a house you'd like to buy. Tell them that you would like to hire them to handle your paperwork, and in return, you would like 1/2 of the buyer's agent's commission (1/2 of 3%, or 1.5%).

This is completely legal in Florida and before I got my own license, this is how I bought investment properties. You will get 1.5% back at closing, either listed on your HUD or via check from the agent's broker.

Any agent that tells you that this is not allowed or illegal is not only wrong, but violating Florida state laws that prevent licensed real estate sales agents from lying to current or potential clients.

I am not a realtor but ever heard "you get what you THOUGHT you paid?"

From my experience that if you want to go that route those realtors will spend minimal time to get you a good deal for obvious reason. That's OK if you know what you are doing but not many people know very well what they are doing when it comes to home buying.