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Dual Agency in a real estate transaction means the listing broker represents both the seller and the buyer. A dual agent must not disclose confidential information to either party and must operate in a hands-off manner. A dual agent cannot get the highest price for the seller and the lowest price for the buyer -- it is impossible. Dual agency can happen even if the buyer is represented by an agent other than the listing agent if that agent is also employed by the same broker. It is the employing broker's relationship with the seller that determines dual agency.
Dual agency is not legal in all 50 states.
I'm with Mikey here for sure; in fact I'd even say: I wouldn't go 1 cent over what I KNEW it was worth. The repairs and improvements not only affect your bank account;they affect your family's life for the duration of the time it takes to complete them.
Front load your decision making process with an appraisal and a thorough home inspection then see what you are willing to handle and what your heart tells you with the aid of your investment in those educational documents( the appraisal and inspection report).
Real Estate transactions are an opportunity to be wise and patient! Everything happens for a reason!
Last edited by QIS; 06-15-2010 at 12:44 PM..
Reason: spelling
They bought it 4 years ago. 2006, right? Tippy top peak of the housing/credit bubble in most markets, right?
The first question on what's a fair value is what city are you in and exactly how bubblicious did it get? If you're in a major market, Case Shiller can give you a ball park of how out of whack prices were in your metro area in 2006.
They did "some work." But not the kitchen, not the basement, not the attic. Did they add square footage? I'm betting no. Not all areas are the same, but "did some work" doesn't matter a hill of beans if it's a bubble market and they bought in 2006. Their mistake doesn't have to become yours.
Sounds like you don't love this house. But it also sounds like you do love the location. Find out how often homes come on with this kind of location and then ask yourself how much it's worth to you to not have to wait.
Two agents at the same brokerage would make me pause as well. The only homes I've ever been "pushed" to buy are ones being sold by my agent's brokerage. And one of the homes I sold had a dual agent situation that I've always wondered about as well.
Thanks everyone! Yes,the seller bought the home at 2006 for about 30k more than they are listing the home. Apparently they did some minor work like fix the ceiling and flooring. The home is located in North Jersey which has also been affected by the recession and tax hikes two years in a row. Another hike is likely this year.
Honestly, I would wait for another home if this buyer doesn't budge on the 510k firm price she has in mind. The supply is limited in this town of 17k people but it's a buyer's market after all.
Thanks all! You helped me make up my mind. I'm not paying a cent more than 500k if the sellers won't budge.
Be careful with that generalization. Some areas and price ranges are seller's markets. If that location is desirable enough, it may be a seller's market for that seller.
Thanks rj, I just did a zillow estimate and it shows the property I bidded on is worth 477k... I also looked up of several sold comps and zestimates are within 1-10k of sold price. This means my offer of 500k is over what the property may be worth. :P
Honestly, I know some of you probably don't trust zestimates but they have been close to sold price in certain areas where I live.
Thanks rj, I just did a zillow estimate and it shows the property I bidded on is worth 477k... I also looked up of several sold comps and zestimates are within 1-10k of sold price. This means my offer of 500k is over what the property may be worth. :P
Honestly, I know some of you probably don't trust zestimates but they have been close to sold price in certain areas where I live.
Zestimates won't take into account the value of a good location, among other factors that you have to see to price correctly. Of course, zestimates will be close to the sold value - that gives them a truer understanding of actual worth (assuming it was a recent sale). The real question is are those recently sold properties comparable to the one you are bidding on and with similar characteristics?
I looked at zestimates because given that my agent is acting under dual agency, she may just choose to show me comps (i got 4 from her) that justify the owner's asking price. The comps fluctuate from 500-550k with homes in various states, lot, and sf. There's really no home that's very similar to the one I bidded on.
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