Cold call to buy my house (appraise, 2%, sales, fees)
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Over the past two days, I have received a letter from a realtor saying that they heard from a neighbor we might be selling soon. They say they have a buyer that is really interested and they wanted to arrange a showing and write and offer.
This is an old trick to get the listing and it might lure you into choosing the wrong agent. You sign the listing, this "buyer" suddenly evaporates and you're stuck with someone incompetent -- and duplicitous -- marketing your home.
Ignore it, interview agents and pick the best one for you. There's nothing to stop this inquiring agent from bringing the buyers to your home if you have listed it with someone else. You'll have to pay a commission regardless of who sells the home for you.
This is an old trick to get the listing and it might lure you into choosing the wrong agent. You sign the listing, this "buyer" suddenly evaporates and you're stuck with someone incompetent -- and duplicitous -- marketing your home.
Ignore it, interview agents and pick the best one for you. There's nothing to stop this inquiring agent from bringing the buyers to your home if you have listed it with someone else. You'll have to pay a commission regardless of who sells the home for you.
You can always just treat them as a buyers agent and pay them 3% just as a FSBO would(which he would be).
This is an old trick to get the listing and it might lure you into choosing the wrong agent. You sign the listing, this "buyer" suddenly evaporates and you're stuck with someone incompetent -- and duplicitous -- marketing your home.
Ignore it, interview agents and pick the best one for you. There's nothing to stop this inquiring agent from bringing the buyers to your home if you have listed it with someone else. You'll have to pay a commission regardless of who sells the home for you.
I thought this might be the case, but they have been really specific about their buyer and have given me info easily verifiable on google. Along with a picture and names of her buyers. I think these people legitimately want my house. I think they may have lost out on my neighbors bidding war.
This is an old trick to get the listing and it might lure you into choosing the wrong agent. You sign the listing, this "buyer" suddenly evaporates and you're stuck with someone incompetent -- and duplicitous -- marketing your home.
Ignore it, interview agents and pick the best one for you. There's nothing to stop this inquiring agent from bringing the buyers to your home if you have listed it with someone else. You'll have to pay a commission regardless of who sells the home for you.
Questionable advice, all around.
The OP's local market dynamics are quite relevant to how to handle the inquiry. Regardless, it almost never makes sense to kick a potential buyer to the curb without vetting them a little.
While some unethical and duplicitous agents are taught to lie about having a client to get a foot in the door for a listing, many areas are experiencing significant inventory shortages.
In my market, we have a frenzy going on currently. Homes selling in hours, with multiple offers is a very common occurence. Happening daily.
I'm not a door-to-door guy, but if a neighbor told me that a house was coming on the market in an area where I had a qualified and frustrated buyer, I would follow up just like the agent who contacted the OP. Without hesitation.
I have one client for whom I expect to target a desired neighborhood with EDDM cards, looking for homeowners who may be considering a sale. And, it is much more about finding a home for the client than getting a listing.
I thought this might be the case, but they have been really specific about their buyer and have given me info easily verifiable on google. Along with a picture and names of her buyers. I think these people legitimately want my house. I think they may have lost out on my neighbors bidding war.
Yep.
Keep your head on straight. You might be in a good position.
Attorney.
Appraisal.
Attend to business.
How do I figure out a competitive price? If I don't have a realtor, I really have no idea what to set it at. But the whole point of this is to avoid a listing agent and their commission. And it seems silly to hire one if I already have the buyer and it doesn't need to be marketed.
Or should I just let them make an offer and then go from there? I've heard in negotiations the one who goes first loses.
Or should I just put a pie in the sky number on it and see what happens?
If you are serious about selling have it appraised. And then have it inspected.
Having both the appraisal and the inspection in your possession will enable you to deal from a position of knowledge and strength. You will KNOW what the house is worth; everyone else will just have an opinion.
I thought this might be the case, but they have been really specific about their buyer and have given me info easily verifiable on google. Along with a picture and names of her buyers. I think these people legitimately want my house. I think they may have lost out on my neighbors bidding war.
So, the agent might actually have a buyer. Maybe.
Get an appraisal from an independent source, and tuck in into your pocket. You obviously know what similar homes in your neighborhood sold for, and what the current listings are going for. That gives you a pretty good idea of the "right" price.
Make an appointment with the agent, and have him bring in his buyers. Do No Sign anything with him other than a final contract once reviewed by your attorney if indeed these folks and you come to an agreement. Do No Sign an agreement with the broker; his compensation comes from the hot to trot buyers. Not your issue/problem/concern.
Good luck. You might be one of the few who are actually being told a straight story about an agent who has a buyer which is interested in your house.
As an addendum, as much as I distrust realtors and believe most of them are complete a$$holes, if you really feel uncomfortable doing a FSBO, get a good realtor and let them handle your side of things. Do Not Use the Buyers Realtor (i.e., this guy who is bring round a potential buyer). I have always used a realtor and believe the good ones bring important skills to the transaction.
Questionable advice, all around.
The OP's local market dynamics are quite relevant to how to handle the inquiry. Regardless, it almost never makes sense to kick a potential buyer to the curb without vetting them a little.
While some unethical and duplicitous agents are taught to lie about having a client to get a foot in the door for a listing, many areas are experiencing significant inventory shortages.
In my market, we have a frenzy going on currently. Homes selling in hours, with multiple offers is a very common occurence. Happening daily.
I'm not a door-to-door guy, but if a neighbor told me that a house was coming on the market in an area where I had a qualified and frustrated buyer, I would follow up just like the agent who contacted the OP. Without hesitation.
I have one client for whom I expect to target a desired neighborhood with EDDM cards, looking for homeowners who may be considering a sale. And, it is much more about finding a home for the client than getting a listing.
I can almost guarantee that the cold-calling agent will first demand a listing agreement from the OP of six months to a year and then, somehow, the deal will fall through. The OP will then be stuck with an agent he may not want. The so-called "buyer" is probably the agent's brother-in-law.
The OP should find the best agent on his own and then allow the cold-caller to bring clients to the home like everyone else. If the "buyer" is that interested in the OP's home, then the normal process should not stand in the way. Of course, I imagine the cold-caller's nose will be out of joint because he/she won't get all the commission, but that's the way the cookie crumbles.
I was also smitten with your last line about finding a home for the client vs. getting a listing. It sounds like the agent who violated the law and screwed me out of a sale after telling me, "I'm working for you." No, it is about gaining a commission as quickly as possible, plain and simple. Let's tell it like it is.
We were in a very similar situation recently and it turned out to be legitimate. A buyer's agent emailed me and told me her buyer's "just might buy it, you never know." With a line like that, I was sure it was a ploy to list the house--especially since we'd had other agents try the same thing. I almost didn't respond but in the end I figured, "what the heck?" Turns out they did buy it--we closed a little over a month ago and the transaction could not have been easier.
You just never know. It is worth a follow up. You can usually pretty quickly weed out an agent that is fishing for a listing. Emphasize that you will NOT be signing a listing agreement with them, for any reason. Make sure they understand that before wasting your time in lengthy conversation. If they are serious and really have a buyer, they will persist. Good luck!
I can almost guarantee that the cold-calling agent will first demand a listing agreement from the OP of six months to a year and then, somehow, the deal will fall through. The OP will then be stuck with an agent he may not want. The so-called "buyer" is probably the agent's brother-in-law.
The OP should find the best agent on his own and then allow the cold-caller to bring clients to the home like everyone else. If the "buyer" is that interested in the OP's home, then the normal process should not stand in the way. Of course, I imagine the cold-caller's nose will be out of joint because he/she won't get all the commission, but that's the way the cookie crumbles.
I was also smitten with your last line about finding a home for the client vs. getting a listing. It sounds like the agent who violated the law and screwed me out of a sale after telling me, "I'm working for you." No, it is about gaining a commission as quickly as possible, plain and simple. Let's tell it like it is.
I think people are confused here. There is no scenario in which I will sign a listing agreement with this realtor. I can't see how she could possibly even have the leverage to make me sign one. If she were to insist on one I would tell her to pound sand, and if that happened I imagine her buyers would fire her in short order.
Anyway, I decided to give her a call. She said her buyers heard we were thinking about selling and asked her to check it out. I asked for bank pre-approval verification, which she supplied. They don't need to sell their house to buy mine and they are willing to rent back to us for as long as we need. They apparently really want to be in my neighborhood because it's the only area in this school district that is walkable to bars and restaurants.
I'm trying to be smart about this. I have an appraisal and inspection scheduled for early next week and I'll tidy up this weekend. Then I'll let them look at the house. If they write an acceptable offer, I'll hire an attorney before I sign anything.
I figure what do I have to lose? I am under no obligation to sell to them and if I get an appraisal, I'll have a good idea of market value. If the offer they give me is unsatisfactory, I will simply put it on MLS and let the frenzy begin like it did for my neighbor's house.
One issue I did have was that the realtor said I would have to pay her 3% commission. This seems suspect to me. I agree she should get paid. But it's not like I listed the house or even tried to do FSBO, scenarios in which I do think I should pay the buyer's commission. It's basically like saying, "Please sell me your house even though it is not for sale. By the way, you owe me 3% of the proceeds."
I'm all for people getting paid for their work, but it doesn't seem to me I am the one who owes her. Hell, she didn't even find the house, her buyers did.
Am I wrong in this way of thinking? I'd appreciate the agents' input.
EDIT: I really don't want to make it seem like I don't think agents are worth their fee. I paid the full 6% when I sold my last house and it was worth every penny. It was a down market and the person sold my house fairly quickly.
But I also think payment should represent in some way the work done. People are literally knocking on my door to purchase my home. It seems silly to me to pay full freight to market it.
Last edited by Niceguy17; 04-25-2014 at 03:16 PM..
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