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That may be...but when did you start believing that all people are smart, that they are completely rational and keep emotions entirely out of the home-buying process?
Hey now...
Clearly, I never said "all" or "entirely."
I said "smart."
Yes, Virginia. Men and women are in fact treated differently in the business world.
I am sorry that you mispriced your house so poorly. Maybe you should use a different realtor next time.
Incredible that the PP has so little idea about how the world works. Would love to dress him as a woman fir a month!
But depending on the market, pricing the house at where you expect it to sell could be overpricing it. If everything is going over asking, buyers assume that $400,000 house is $450,000 and out of their price range. The amount over asking even varies by price point, so a $350,000 house is really $375,000, but $400,000 is $450,000.
OP, you've hired your agent to represent you, but yet you doubt what the agent is suggesting to you. It's highly unlikely your agent is trying to fool you into higher offers for the few hundred extra dollars it would put into their pockets. Then you even suggested that the agent avoided showing your a particular comp because you assume that is sold for under asking price, almost like the agent began conspiring against you from day one.
So, my question to you is since you know so much about real estate, why not just represent yourself?
I hope you do find a property that meets all your needs for the right price. Good luck!
The likelihood of there being other offers and the credibility of those claims depends, obviously, on the market. Where houses turn around in 24 hours or less, probably... Where they sit for a year, probably not... YMMV.
I'm perplexed. Twice now, when expressing interest in a house, the agent who is showing me the house (not the list agent), "advises" me that if I turn in an offer, it's best to do it right away since another offer is coming in, and it's best to offer at least the list price.
Since when do agents "advise" to offer the full asking price? Now, bear in mind that I was pretty sure in both instances the houses were not worth the asking price, and both needed some things done. The first one needed a LOT of work, actually. I decided not to make an offer on either because they weren't right for me. But the first one did indeed sell for considerably LESS than the asking price. I don't know yet, but am pretty darn sure, the second one has sold for less than the asking price.
What the heck is the deal? Since when do agents who are supposedly helping YOU the buyer urge you to pay more than a house is worth? I even got comps from one that were very limited, and left out a comp that I knew about (because I've been following the market there closely) that would support a LOWER list price.
Somehow I don't think this happens to male buyers. I wonder if they think I'm stupid because I'm a female buyer, or that I'm more easily persuaded, or maybe buy from emotion rather than value?
Is this the norm? To encourage offering the asking price, or more? (Note: It's a bit of a buyer's market there. So it's not a seller's market situation.)
I would never advise a buyer to do this without providing convincing data to demonstrate its necessity. I advise my buyers to look at the extensive market data I provide and come up with their own offering price based on what makes sense to them. My policy is to provide the data for the buyer to make an informed decision, but leave that decision to them. I'll step in if the data is confusing or contradictory, but the buyer is spending the money and must be comfortable with his or her offer.
Oh, I believed that there were other offers. My price range is common, and I seem to be attracted to houses that others are attracted to. And the houses did, in fact, sell a day or two later.
Actually, when I hear there are other offers coming in, that makes me less likely to make an offer. I don't want to get in a bidding war. My view is that I would offer a little less than what the house is worth TO ME, giving me room to go up a bit. That's all I can do. If that's not what the seller thinks his house is worth or thinks he can get more, then that's that. I tend not to fall in love with houses. I'm very practical. Having said that, it's POSSIBLE I suppose that I would run across the perfect house...in some universe. But unlikely. I don't seem to have that gene that falls in love with one particular house or car or whatever. I wish I WOULD find a house that could be my dream house.
Most of this is sensible. I would add that even in a multiple bid situation, you should not be deterred from bidding out of fear of a bidding war. The winner of such a war is often the best buyer, not the highest offer. If you present an offer that includes things like, for example, a good down payment, a quick or extended closing date based on the seller's needs, a high FICO score, a declaration of conservative home inspection requirements, etc., you could easily beat a higher offer.
This is where a good buyer's agent is handy. A buyer's agent job description in this instance is not only to present your offer, but to sell YOU to the seller. This is accomplished by presenting your offer in person, not electronically, and demonstrating why you provide the best chance to actually close. In many cases a lower offer is the winning offer when ancillary factors are integrated.
Here is your issue then since most sales are based on the market and not what you VALUE a house to be or what the Seller believes also.
Comps don't lie but I suggest to you that you be honest with the realtor you are working with about what you truly want Offer for a specific house.
You sound like a tire kicker and don't know what the true value of a home is.
A comp can be just any house....or it can be a true comp. In a buyer's market with few sales, there are few comps, of course. However, I have been analyzing that market for about 1 1/2 years. I've measured lots, created spreadsheets, looked up city appraisals, noted conditions of hte property, logged square footage, logged available "yard" square footage (lot minus structures), etc. I probably am more aware than any agent what is on the market in my price range, and what a house's value is in the current market. I may disagree about the desirability of an area, but I have a handle on which areas sell more quickly (not necessarily the areas I like the most).
I am at all times up front and honest. I showed merely an INTEREST in the house. At no time did I express love for any house, and in fact, I am not the sort who falls in love with houses. At no time did I even say that I would make an offer. These were instances where I merely expressed an interest, and the agents took off on that like a jet plane.
I am not a tire kicker. I am living in a rental, have the cash in the bank, and am ready to buy. I am disappointed I haven't found something by now. I will be buying within the next 3 mos, but preferably sooner.
I understand you don't want to believe that two comps (that's right...she gave me TWO comps; I had to add the third, that she didn't think I knew about) were not applicable, or that an agent had her own interest in mind, but that was apparently the case in two instances. I can't think of any other reason for the actions of the two agents.
I did work with an agent in a different area who was not like that. Unfortunately, that area didn't work out (which I strongly suspected would be the case, having looked at that area online for a yr or more).
The above is incomprehensible...in an extreme seller's market like Seattle. I'm sure it makes much more sense many other places in the U.S.
Although I still don't understand the puzzlement. In aggressive markets, act aggressively? Out here, we have Chinese paying cash they ripped off from god knows who in their own corrupt country for gorgeous million dollar and up homes, so they have a place to park their loot. Those being homes in desirable neighborhoods, and about the bottom end price of any three-bedroom-plus, >2K sq ft, in a safe place with great schools and tolerable commute to employers hiring like mad for $100K-plus jobs.
Paying less than asking just doesn't happen in those kinds of neighborhoods here. House very close to me sold not terribly long ago for not much under a mil, bid up from about $900K, by exactly who I describe. "Very Hot" market, anything can and will happen. All a matter of perspective.
When I bought, not too many years ago, my agent not only "encouraged" me to bid asking, but required I sweeten my deal in a few other ways to stay competitive with others that were coming. I knew they were coming, I didn't need him to tell me, when comparable homes in this neighborhood had a half-dozen offers in maybe three days after showing. I beat out just a few others, but my offer was in 2.5 calendar days after it opened and waved inspection plus closed in 28 days (Friday went on MLS, three or four offers in Monday morning including mine).
No idea what you're referring to, male vs. female buyer. Quite skeptical that is the issue. Unless you're looking for homes in Saudi Arabia.
I do think there is a difference with how business people gear their sales pitches if your gender is male vs female.
I doubt the man who bought my house for cash was faced with the agent telling him to "up" his offer to make sure he got it. However, the agent sure did work on me to try to get me to lower my asking price. And as I've said, twice now the agents have worked on me to try to get me to place an offer at full asking price or more. I also know that my brother has bought several houses. Not once did any agent tell him to offer full asking price. I don't KNOW that it's gender. But I think it's likely they may assume that a female is easier to persuade....and they may be right about that.
You're concentrating on the wrong thing about the gender. I just wondered about that. Their attempts at persuasion had no effect on me. I've bought houses three times before. I've been to this rodeo.
1. Get a knowledgeable, experienced buyer's agent with whom you have a good rapport and excellent communication, and find a house you like.
2. Have him go over the comps with you in detail. Listen to what he has to say about the market and about the house, and listen to his suggestions. Remember that part of what you are paying him for, is his expertise so might as well at least listen to what he has to say.
3. Think about it.
4. Then, remembering that YOU are the decision maker here, make an offer that makes sense to you.
Don't worry about the gender stuff you mentioned. If you feel uneasy about that, you probably have the wrong buyer's agent for you. I feel like my agent enjoys the process of negotiating the price and making a deal happen, so much, that stuff like that never enters his mind. He always persuades me to negotiate much more to my advantage than I would have otherwise done, and I am an old lady. This puts me through a lot of stress because I never think the deal will happen, but if/when it does I end up with a good price. A couple of times I didn't get the house because it didn't happen. But, I haven't regretted it and he loves walking that tightrope with me.
Last edited by NOLA2SGF; 08-03-2016 at 11:02 AM..
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