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Not sure if i put this in the correct forum. Here goes.
My wife and i are in the process of trying to buy our first home. A former co-worker of mine is our agent. He was laid off his last job a year ago and has gone back into real estate. When we started looking at houses, he had us sign a contract that we would use him for a set time (3 months). If we purchased a home through by-owner or through another agent, we would still pay him a certain percentage for his time.
After we signed, we talked to several friends who have purchased houses, and not one has ever had to sign a contract like this. Is this something that is not common?
It's also a little frustrating, because we want to make an offer on a house we love. The house has been on the market over 200 days, and the price has continued to drop. We want to offer about $5,000 less than the asking price, and has pretty much said point blank they will not accept the offer. I feel like he should at least advocate for us on our behalf. We have a young daughter and this will be our first house. We are not out to flip it and make a profit. This house is at the upper end of our price range, but would love to make it work if possible. We hope he will negotiate with the sellers agent and let them at least know the situation.
Is this outside the norm?
Not sure if i put this in the correct forum. Here goes.
My wife and i are in the process of trying to buy our first home. A former co-worker of mine is our agent. He was laid off his last job a year ago and has gone back into real estate. When we started looking at houses, he had us sign a contract that we would use him for a set time (3 months). If we purchased a home through by-owner or through another agent, we would still pay him a certain percentage for his time.
After we signed, we talked to several friends who have purchased houses, and not one has ever had to sign a contract like this. Is this something that is not common?
It's also a little frustrating, because we want to make an offer on a house we love. The house has been on the market over 200 days, and the price has continued to drop. We want to offer about $5,000 less than the asking price, and has pretty much said point blank they will not accept the offer. I feel like he should at least advocate for us on our behalf. We have a young daughter and this will be our first house. We are not out to flip it and make a profit. This house is at the upper end of our price range, but would love to make it work if possible. We hope he will negotiate with the sellers agent and let them at least know the situation.
Is this outside the norm?
in my area, we are now required to have a potential buyer sign a disclosure statement stating that we are representing that buyer, prior to showing a home, even if the duration of the agreement would only be for a single day (if the buyer does not feel comfortable entering into a longer agreement quite yet)
that being said, he should most definitely submit the offer you ask him to. even if the listing agent flat out told him not to waste his time, he should atleast write it up and email it over, if nothing but to make you feel better about the situation.
You signed a contract apparently making him your buying agent, sounds like exclusive buying agent. This is "normal" though there are other types of contracts that are less restrictive that you could have signed instead. You're agreeing that he be involved in some way and be compensated when you purchase a home. And that being said, yes he should work his butt off for you. And present your offer whether he thinks it will fly or not, or work out a more competitive offer WITH you if he believes your offer will "not fly". Maybe thats what he's trying to do and has simply failed big time on communication skills.
Your agent should always present your offer, and the sellers agent should always tell the seller of all offers. Its up to the SELLER to agree or refuse your offer. Not your agent and not their agent. I also hear lots of stories about sellers who never heard about an offer they might have accepted.
The seller might not like your offer, but instead of flat out refusing it they could come back with a counter proposal.
Thanks wireyourworld. We understand the seller may not accept, but feel that negotioating is part of this process. When we asked him the other day what happens if we make an offer and they reject it, he said it was up to us. We said, so we could make a slightly higher offer and maybe have them pay part of the closing costs? His response was yes, if you want to play games like that. Kind of made me mad. I don't feel like we are playing games, only trying to get the best deal for us. It's like buying a car.. no one really pays sticker price.. unless you go to Carmax.
Be careful of your statement of not paying sticker price. Would you rather pay list price on a fairly priced house, or get a "discount" on an overpriced house that still might not be fairly priced after your discount. It's not about the bargaining, it's about understanding the market value of a home. I don't know your budget or financial situation but would you really give up on a house you really want for $5,000? And remember, in most parts of the country prices are going up, and most likely interest rates are going up as well.
And yes, I have a seller who will take asking price and not a penny less. She instructed me to tell all buyers agents that before they show the home to avoid wasting her time with low offers. I share that info with the agents and they tell their buyers. That said, if the buyer says they want to put in a lower offer, the agent should do it for them.
Thanks wireyourworld. We understand the seller may not accept, but feel that negotioating is part of this process. When we asked him the other day what happens if we make an offer and they reject it, he said it was up to us. We said, so we could make a slightly higher offer and maybe have them pay part of the closing costs? His response was yes, if you want to play games like that. Kind of made me mad. I don't feel like we are playing games, only trying to get the best deal for us. It's like buying a car.. no one really pays sticker price.. unless you go to Carmax.
FWIW, a lot of folks are very superstitious about seller paying buyer closing costs. It is often considered a "game."
But, if you raise your offer $5000 and ask for $5000 in closing costs, seller will actually net less money from the sale.
And, it is NOT like buying a car. It is not uncommon to pay list price, when the recent local closed sales values support that list price.
Oh, yes....
Always tie up the agent with a buyers' agency agreement that defines their job and offers you protections.
Never sign one without an escape clause, allowing you to walk away any time before you go to contract.
Not sure if i put this in the correct forum. Here goes.
My wife and i are in the process of trying to buy our first home. A former co-worker of mine is our agent. He was laid off his last job a year ago and has gone back into real estate. When we started looking at houses, he had us sign a contract that we would use him for a set time (3 months). If we purchased a home through by-owner or through another agent, we would still pay him a certain percentage for his time.
After we signed, we talked to several friends who have purchased houses, and not one has ever had to sign a contract like this. Is this something that is not common?
It's also a little frustrating, because we want to make an offer on a house we love. The house has been on the market over 200 days, and the price has continued to drop. We want to offer about $5,000 less than the asking price, and has pretty much said point blank they will not accept the offer. I feel like he should at least advocate for us on our behalf. We have a young daughter and this will be our first house. We are not out to flip it and make a profit. This house is at the upper end of our price range, but would love to make it work if possible. We hope he will negotiate with the sellers agent and let them at least know the situation.
Is this outside the norm?
Did the seller reject or did he just say they wont accept it? Was this offer in writing?
Chances are the agreement you have is not with the agent, but the agent's company. Find out who the managing/designated broker is and call them stating you feel you are not being represented properly. Unless this a $10,000 property, your request is reasonable and your advocate in the process should be working for you on it.
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