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Looks like I stirred up some interesting real estate agency debate
I guess I was wrong by mentioning what I thought the house might be worth at the time of the initial offer because I didn't do enough research on the area. This was kind of like a home we 'fell in love with' and didn't do enough digging before placing the first offer. After the initial offer and looking at some comps I think my first offer is a reasonable price. I don't want to overpay even though we like the home so I'm willing to walk away if they don't budge. The town that the home is in is not desirable but it is in the most desirable area of that town...if that makes sense.
In this situation would removing the offer and submitting a slightly lower offer be effective or would this offend the seller?
When you made the offer and signed the "Offer to Purchase" (NOT the final "Purchase" contract), you put down a "good faith" deposit with that offer, right? And you have maybe 10 business days to get the home inspected by inspectors you hire...have you done that yet?
Where I live, you can "get out of" the obligation to buy, the "offer to purchase" (NOT our of the final purchase agreement) if anything in the inspector's report is not to your liking. Do NOT allow the seller or the seller's agent to be present during your private inspections! The seller's agent may insist on "being on the property" while the inspection is taking place; have her/him wait in their car. This is your report and yours only.
So, after the inspection deadline, if something is wrong with the house, anything at all, if you still want the house rescind your offer in writing through your lawyer,*** get your deposit back, and make another signed "offer to purchase" with the price you want, citing in writing that such and such needs to be done (anything from electrical to pointing the chimney to whatever). The seller may elect to get estimates for the work needing to be done and then deduct those costs from the sell price.
If the seller declines to adjust the price, walk away for a few weeks and see if it sells. You can always go back in with your best offer, and by then the seller may be desperate and your deal is a go.
***I would never let a RE agent get involved in any legal aspect whatsoever. After he/she submits your initial "Offer to Purchase" with your deposit, mum's the word! Do not say a word to anyone about anything. All negotiations should go btwn your RE lawyer and the seller's, and every smallest negotiation signed on the "Offer to Purchase" agreement finally signed by both parties.
I put an offer on a home I was interested in for 10% lower then offer price
I told my agent what the max I would probably want to pay for it
When I spoke with her she apparently told the sellers agent this price and then they gave a counter offer at around 10k higher then my max price
Is this normal? I was actually hoping to not pay that price at all and i'm not even sure if it is worth it
For now i'm just sticking with my original offer and a bit ticked off that my agent told the sellers agent this information. Should I go with a new agent due to this issue?
Not the ethical way for a real estate agent to act.
Get a new one.
When you made the offer and signed the "Offer to Purchase" (NOT the final "Purchase" contract), you put down a "good faith" deposit with that offer, right? And you have maybe 10 business days to get the home inspected by inspectors you hire...have you done that yet?
Where I live, you can "get out of" the obligation to buy, the "offer to purchase" (NOT our of the final purchase agreement) if anything in the inspector's report is not to your liking. Do NOT allow the seller or the seller's agent to be present during your private inspections! The seller's agent may insist on "being on the property" while the inspection is taking place; have her/him wait in their car. This is your report and yours only.
So, after the inspection deadline, if something is wrong with the house, anything at all, if you still want the house rescind your offer in writing through your lawyer,*** get your deposit back, and make another signed "offer to purchase" with the price you want, citing in writing that such and such needs to be done (anything from electrical to pointing the chimney to whatever). The seller may elect to get estimates for the work needing to be done and then deduct those costs from the sell price.
If the seller declines to adjust the price, walk away for a few weeks and see if it sells. You can always go back in with your best offer, and by then the seller may be desperate and your deal is a go.
***I would never let a RE agent get involved in any legal aspect whatsoever. After he/she submits your initial "Offer to Purchase" with your deposit, mum's the word! Do not say a word to anyone about anything. All negotiations should go btwn your RE lawyer and the seller's, and every smallest negotiation signed on the "Offer to Purchase" agreement finally signed by both parties.
Amazing how it gets dumb and dumber. You of course realize that in most of the US we don't use lawyers in the sales process? That there is only one form...here the Residential Purchase Agreement. That in general you simply request fixes and then negotiate a them or a sum of money to compensate? That sometimes sellers will not negotiate so you have to decide whether to take it as it is or walk? Do you understand that sometimes you can make a dozen offers...most above list..and be turned down every time?
The general rule is play it straight to whatever the local rules are...those who don't end up homeless.
Where I live, you can "get out of" the obligation to buy, the "offer to purchase" (NOT our of the final purchase agreement) if anything in the inspector's report is not to your liking. Do NOT allow the seller or the seller's agent to be present during your private inspections! The seller's agent may insist on "being on the property" while the inspection is taking place; have her/him wait in their car. This is your report and yours only.
.
As a buyer you can't insist that they not be there. While many sellers choose to leave, some find it too hard to be gone for three hours for the inspection so they stay in the house. I'd never wait in my car if my sellers wanted me in their home during the inspection.
That would be a red flag for a totally unreasonable buyer out here.
I put an offer on a home I was interested in for 10% lower then offer price
I told my agent what the max I would probably want to pay for it
When I spoke with her she apparently told the sellers agent this price and then they gave a counter offer at around 10k higher then my max price
Is this normal? I was actually hoping to not pay that price at all and i'm not even sure if it is worth it
For now i'm just sticking with my original offer and a bit ticked off that my agent told the sellers agent this information. Should I go with a new agent due to this issue?
Never tell anyone your real bottom line. Not the judge, not your boss, not your lawyer, no one.
Never tell anyone your real bottom line. Not the judge, not your boss, not your lawyer, no one.
^^^^ So true. Even if they are supposed to keep that info private. Sometimes they tell someone else. And others might overhear a conversation.
Once someone knows your bottom line(such as your realtor), human nature will have them attempting to get that bottom line instead of something better for you.
^^^^ So true. Even if they are supposed to keep that info private. Sometimes they tell someone else. And others might overhear a conversation.
Once someone knows your bottom line(such as your realtor), human nature will have them attempting to get that bottom line instead of something better for you.
I will add that what you think is your bottom line can change as evidenced by the OPs change of heart. All parties to any transaction would be prudent to not draw a mental line in the sand beforehand. There is no upside.
I once bought a property because I overheard the re agent and buyer talking about his offer in a donut shop. I had made an offer, too. So I upped it.
Never discuss price in a public place.
When in negotiations, there's nothing better than getting inside information--in your case, inside a donut shop!
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