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My husband and I are in the market for our first house and have put an offer in on one this morning.
After going over and over the paperwork, I just can't get over the fact that I think this house is seriously overpriced and things seem fishy. It's not enough to keep us from making an offer, but I do feel a bit uneasy about it.
The listing agent is also a total airhead, who keeps trying to play games with us. She can't give us straight answers to our questions, I don't trust the answers she gives us, very obviously has no knowledge of rural properties, and keeps dangling this supposed "other offer" out in front of us to get us to raise our offer (we're not).
Basically, this dude bought a house two years ago, likely for too much money (looking at the appraisal, the comps are not actually all that comparable), spent a sh*t ton of money renovating the house in a very "western" look, got divorced, and has now had the house back on the market for a year. My best guess is he is trying to get all of his money back out of the deal. The house is definitely nothing like what I thought we would buy, but fortunately it's mostly cosmetic things that we could fix with a bit of money (replacing shag carpet, repainting heavily textured walls and very dark ceilings, removing hideous tacky light fixtures - I've taken to calling it the western saloon ). The listing agent keeps harping on how it was appraised at 420K two years ago, and has been "updated" since then. It is in very nice condition to be fair, but the "updates" are mostly stylistic cosmetic things. We submit our offer for 375K this morning, which is still more than I really think it's worth (the list price is 412, which is $141/square foot).
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?
You need your own relator. A buyer's agent cost the buyer nothing. Right now the only person she is really representing is the seller. As a general rule using the same relator is a horrible idea and is seldom in a buyer's best interest.
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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.
That's quite a low offer and will like be countered high or rejected. The sq ft price is not important without knowing the area and what the extras are, such as acreage, out buildings, etc. If you aren't willing to pay what he's asking, you'll likely have to keep looking. That's how real estate goes.
In my area, when a listing agent asks for "highest and best", this means that's it, there is not a whole lot of negotiating past that point. If you say this is your "highest and best" I would be surprised if they counter your offer. Where I work, when I am asked to present highest and best, it means there is at least one other offer on the table and only one (normally the best one) will be countered or accepted.
Your offer is low and I understand where you are coming from but you have to see it from the sellers side as well. He is in a divorce situation and might have to split the proceeds based on what the court decrees (which might be why there was an appraisal done).
If you think the house is overpriced, offer what you think is fair. The seller may reject your offer because he wants or needs more money, but don't let that become your problem.
Occasionally it is simply not possible to make a deal because the two parties just cannot agree. That is ok, move on to the next property.
I'm not certain what you are finding out or what your realtor is finding out and letting you know then.
Your own realtor should know whether it is law in Texas or Realtor Code of Ethics that the listing agent present all offers as quickly as possible. I believe it is at least Realtor Code of Ethics and a realtor could be called up on not abiding by the Code. That said, she could show you her seller's letter to her stating he only wants to look at certain offers or that he has other parameters such as when offers would be presented.
Your realtor should also be able to look up the last sale price of the property you're interested in. She should also be able to get better answers out of the agent...and even ask the agent what's behind her acting the way she is.
You would have an inspection as part of due diligence...or at least you should...and make your contract contingent on that. You could ask to have an inspection before making an offer if you like. In some areas, that is even common.
You will have an appraisor come out if you are getting a loan. You could have one come out if you want even if you don't get a loan and make that part of your contract as well.
You should also be made aware of local laws, local deeds of restrictions, rules for the neighborhood or actual HOA if there is such a thing.
No, professional licensed Realtors are not always airheads.
We are not using their realtor, we do have our own (just not paying since she's a family friend).
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.
Asking for your highest and best offer is typical language used when the seller has multiple offers. I don't know where you are located but nearly every deal I've done lately has had competing offers, so its not unusual for this to come up. I cannot understand why you are dealing with the listing agent yourself and your realtor is not. ???
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