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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.)
In a seller's market it is very common. In a buyer's market, it is expected that buyers have the ability to negotiate since the market favors them. It sounds like you need a new agent.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The realtor should know the market better than the average buyer. Not to question your evaluation, but here, every home sells in a week or less with multiple offers over asking, so the advice would be not only good but critical. Many a buyer goes months or even years being outbid by someone else. If it's truly a buyer's market, offering full price or more would be nuts, not only would you be paying too much but would risk an appraisal coming in too low for the loan amount. Possibly this agent is trying to pad their commission, and it's time for you to find someone else to help you.
Well, next time you could say last two times I was given this advice, the homes sold for less.
BUT I guess you know the price is not primarily based on the work a house appears to the buyer to need. It's based on the comparable sales....and beyond that add and subtract according to what more or less the house offers compared to those sales. And if it's overimproved, sometimes a seller just cant get as much as he would like. And sometimes a buyer just wants to be certain they put in his/her best offer because he/she just loves the house and doesn't want to lose it.
I understand what you are telling me. Please show me comparables that show that other buyers have paid other sellers more than the asking price in this neighborhood in the last 60 days.
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.)
The only person they care to help is themselves, think about it. They are working for the commission...not you. Guess you either have to play their game or call the agent on it and see what they say...then try to find an honest agent with scruples...Best of luck.
Koale
Well, next time you could say last two times I was given this advice, the homes sold for less.
BUT I guess you know the price is not primarily based on the work a house appears to the buyer to need. It's based on the comparable sales....and beyond that add and subtract according to what more or less the house offers compared to those sales. And if it's overimproved, sometimes a seller just cant get as much as he would like. And sometimes a buyer just wants to be certain they put in his/her best offer because he/she just loves the house and doesn't want to lose it.
Yes, I think I'll do that.
Yes, I know how to value based on comps and such. But I've looked online at a LOT of houses for the past year and have a good sense of the kinds, and amount of, repairs and renovations needed in houses in some of the areas, as well as what is considered desirable (which are also desirable traits for me). So I knew, for instance, for that first house, which needed about $30k of work (updates and repairs), and wasn't as nice as some other houses in the area, just wouldn't be likely to sell for what they were asking. The house hadn't been maintained (owner was a co. relocation guy who moves around). But the agent was pushing me so much (there were other offers coming in) that she didn't even take the time to do comps yet. As I found out, my instinct was right about the house.
The second house has a few flaws that may vary in importance to people. Still, unusual flaws. And differences from the others in the neighborhood (the comps). It's about 20 yrs older than the comps, has a tiny tiny den (the only living area), only one door to the nice back yard and it's in that tiny tiny den, and no venting at all for the stove in the tiny kitchen (no cost effective way to add venting to the outside, either, but could add recirculating venting). So although a cute house with many wonderful features, I know it isn't worth the same amt per square foot as the others in the neighborhood.
I was just taken aback those two times when they suggested I offer full asking price...or more! And I'm a cash buyer!
Yes, I know how to value based on comps and such. But I've looked online at a LOT of houses for the past year and have a good sense of the kinds, and amount of, repairs and renovations needed in houses in some of the areas, as well as what is considered desirable (which are also desirable traits for me). So I knew, for instance, for that first house, which needed about $30k of work (updates and repairs), and wasn't as nice as some other houses in the area, just wouldn't be likely to sell for what they were asking. The house hadn't been maintained (owner was a co. relocation guy who moves around). But the agent was pushing me so much (there were other offers coming in) that she didn't even take the time to do comps yet. As I found out, my instinct was right about the house.
The second house has a few flaws that may vary in importance to people. Still, unusual flaws. And differences from the others in the neighborhood (the comps). It's about 20 yrs older than the comps, has a tiny tiny den (the only living area), only one door to the nice back yard and it's in that tiny tiny den, and no venting at all for the stove in the tiny kitchen (no cost effective way to add venting to the outside, either, but could add recirculating venting). So although a cute house with many wonderful features, I know it isn't worth the same amt per square foot as the others in the neighborhood.
I was just taken aback those two times when they suggested I offer full asking price...or more! And I'm a cash buyer!
Maybe the other houses in the neighborhood have similar problems. Try not to compare houses you haven't looked at.
You sound like a reasonably intelligent person. I suggest: (1) listen to what the agent has to say, (2) look at the comps, and (3) make your own decision. Then say to the agent "thank you for your effort, but this is my decision."
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.
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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?
Wait. Unless this is a BUYER agent with whom YOU have a contract, the agent is representing the seller. Listing agent or not.
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