Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This seller needs to find a buyer that falls for the house on an emotional level if he is priced above market. The OP is obviously not one such buyer and should probably pass on this home. Don't assume because you aren't willing to pay more, others feel the same. Many will see a home they like at a price they can afford. Don't spend time worrying about other's motivations, you'll drive yourself crazy. Concentrate on making serious offers on homes you really like. Offering 90% of list, on a home not distressed sounds pretty aggressive (and really for the veteran shopper, who would already be on to the next home).
We are not using their realtor, we do have our own (just not paying since she's a family friend). Using the listing agent as our realtor would be a huge conflict of interest.
I don't know where you live but here, it would violate agency laws here to contact another agents client directly without consent from their agent. So your friend is representing you but the listing agent called you to ask for highest and best?
Quote:
Originally Posted by ReesesPieces87
She's already contacted us to ask if this is our "highest and best" offer, without offering any more information. I said yes, I believe our price to be reasonable without any additional information, and that we would entertain a counteroffer from the SELLER, since I don't believe she's even showed him our offer yet.
Any thoughts? We are first time homebuyers and I hate how murky all of this seems to be. Is this the norm?
What this sounds like is that there is another interested buyer that asked to be contacted if an offer came in. Happens all the time. She is using your low offer to get the other buyer to write. That would be my first thought by asking if this is your highest and best. I would totally leverage your low offer to try and get my seller a better offer if there was another buyer hanging out in the wings that hasn't written an offer yet.
The second thought, if there really isn't another buyer, is that the listing agent needs to advise the seller what to do. Since your offer is on the lower side, she is trying to determine if you are serious buyers or not. I've asked buyer agents before with low offers if it is worth countering on. It gets at the same issue. No one wants to waste time if that is the best you can do and the listing agent knows the seller won't come down that far.
We are not using their realtor, we do have our own (just not paying since she's a family friend). Using the listing agent as our realtor would be a huge conflict of interest.
You don't pay your realtor, get their help or as someone else suggested hire your another realtor snd keep friendship and business separate.
When you say you and the listing agent have negotiaed, im assuming you mean your REALTOR and the listing agent have correct? There's no reason why you should be directly speaking to the listing agent or the home owner.
If your "friend" isnt doing this, you should get another agent.
Also, if your not comfortable with the price, then dont put in an offer? Why would you do this? Your setting yourself up for a big headache.
Maybe you should look for a good agent and keep friendship and business separate. Typically, a buyer's agent is compensated by the listing broker by a split of the commission which is paid by the Seller to the listing broker.
Agreed. When you (OP) say you are not paying your agent, does that mean that your agent offered to rebate his or her share of the commission to you? If not, what is happening to the buyer's agent commission that is certainly part of the total commission paid by the seller? Finding out what the commission is would be a good start.
Anyway, this may or not be a good property for you. You may never know if it is fairly priced. But if you think it is overpriced, I would move on and avoid having second thoughts later unless the seller accepts an offer you think is fair.
Some advice from someone who has purchased three houses and sold two:
Trust your gut, no matter what the professionals are telling you. If your thinking is off and your offer is consistently too low, you'll need to make an adjustment but don't do so until absolutely necessary.
Offer what you feel comfortable paying and ignore the so-called normal rules of engagement. I was once told that I risked offending the seller if my initial offer was too low. Like I cared about anything other than purchasing a house for a fair price.
Only work with a Realtor who you feel confidant represents your best interests. We've had two great Realtors (one retired on us) and one so-so Realtor (different state). But if we didn't feel like they were providing us advice that had our best interests in mind it would be a huge problem.
Lastly, most first-time buyers get the jitters when getting their first house. Don't put too much pressure on yourself, if it works out, great. If it doesn't, you can eventually sell and buy better.
Good luck. Remember to take deep breaths and not be pushed, bullied or cajoled into something your not comfortable with.
Definitely sounds like OP needs a good realtor, not a family friend that isn't getting paid (probably rebating).
A good realtor will help you by more than 3%.
It sounds like OP is not happy with house. Don't offer more than the house is worth to you. If you aren't going to own a house for at least 5 years, don't buy it.
Lack of comps is a regular problem with rural properties, but this price sounds quite high with no information about land / other value added to the property.
wow...what type of an offer is 375k over a 412k listing? 37k difference is a huge gap that the seller would sell it for but you're starting off the negotiation process right though..by giving some room for a good counter-offer. The process of buying a house can be very murky and daunting...it takes months in order to land the house you want.
Summing up the tips that others provided.
1. Your realtor should represent you, and in this case you probably had that but ensure your realtor is 100% engaged.
2. Don't use close one to be your realtor, she/he should be a professional realtor who has longevity in the business
3. Your realtor should be informed if there are other offers in place, ensure your realtor is fully capable of negotiating
4. If you feel that the house isn't that great, move on to different houses.
5. Try to look for new developments (houses to be built) in the area...and see if you can be in that range.
wow...what type of an offer is 375k over a 412k listing? 37k difference is a huge gap...
It all depends upon what the house is really worth. A list price may have little correlation with the actual market value--it's just a starting point they're advertising. I brokered the purchase of a rural house where the list price was 25% higher than the accepted offer--and our initial offer was lower.
With rural properties, especially, where there may be a limited market, there can be considerable variation in list prices--particularly if there aren't that many comps around. (Plus, remember that an owner sets the list price, even though an agent may recommend differently.) Just because someone may ask a certain price, it doesn't mean that it's worth anywhere near that price. Time will tell.
A house is worth what a buyer will pay and a seller will accept. Without more info, it's impossible to know in this case whether the realistic value is closer to the asking price or closer to your offer. Just like a seller wants to get as much as they can, there are buyers who feel they are entitled to get the house they want for the price they are able to pay, even if that is lower than the market value.
Right now, there isn't enough info to know whether the asking price is fair or if your offer is fair, or even if there is a second offer. You've made what you consider a reasonable offer, now the owner has the ability to say yes or no. Nothing fishy here that I can see. If you can't get it for the price you are willing to pay, move on to something else.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
