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I understand why above asking offers exist. I also understand that selling real estate is a business and not a charity. No "perception" involved. It's just the way it is. I have a great agent who I love working with but she doesn't do it for free because we like one another.
I give up. Why ARE you so touchy?
Your post revealed an agenda that you did not mention when opening the thread.
So you got called on it? It happens.
Your post revealed an agenda that you did not mention when opening the thread.
So you got called on it? It happens.
No agenda whatsoever. Interested to hear others experiences. The more I thought about it after reading responses the more I started to shape my opinion. Isn't this the point of these forums? To learn about how others see things and apply it to what you know from your experience?
I'm happy anytime I learn something new. Call me out all you want for that! And I can restate the fact that Realtors need to make money. Higher price homes encourage more commission. Therefore bidding wars benefit them more than the buyers. Fact. Fact. Fact. Ask a buyer in a hot market how a bidding war benefits them if you don't believe me. This does not make realtors bad people. Quit pouting; no one called you a name.
It would be really interesting to see how everyone responded if agents made a flat commission...say $1000 per sale. I bet many would do their darndest to avoid a bidding war. That seems like a lot more work for the same return.
Again, simple logic. No value judgment. I, too, appreciate being able to earn money in my profession.
No agenda whatsoever. Interested to hear others experiences. The more I thought about it after reading responses the more I started to shape my opinion. Isn't this the point of these forums? To learn about how others see things and apply it to what you know from your experience?
I'm happy anytime I learn something new. Call me out all you want for that! And I can restate the fact that Realtors need to make money. Higher price homes encourage more commission. Therefore bidding wars benefit them more than the buyers. Fact. Fact. Fact. Ask a buyer in a hot market how a bidding war benefits them if you don't believe me. This does not make realtors bad people. Quit pouting no one called you a name.
Pout?
I think not.
I don't mind at all seeing agendas at play.
Have you learned from the thread that price and value are very loosely linked?
Probably for the best. Many of us understand that the list price does not necessarily equate to a home's value, so this question means nothing to savvy buyers. The hard-headed buyers will continue to state that they will NEVER go over asking, even if the house is listed below market.
Probably for the best. Many of us understand that the list price does not necessarily equate to a home's value, so this question means nothing to savvy buyers. The hard-headed buyers will continue to state that they will NEVER go over asking, even if the house is listed below market.
Terms like "Savvy"and "hard headed" may help you to convince your clients that they need to drop more cash. These are value judgments. Everyone likes to feel smart and validated. Personally, I'm quite pleased with how I've done over the last 12 years of buying and selling. So call me a hard headed buyer and I'll laugh my savvy way to the bank!
So, you think the house is worth $525,000 but it is only listed at $510,000, so you disqualify if from further consideration?
But, if the same house is listed for $535,000, you consider it because you may get it for list or less?
That is what I am reading from your posts.
Oh, yeah.... And I never say "$525K." In my experience, people who use the "K" commonly would faint if they dropped a nickel on the floor, but are cool and casual about 3 decimal places....
I look at the condition of the house. If it's a pile of crap I look at what it costs to fix it. Then I make a offer based on what I feel the house is worth due to the needed repairs. Granted it has to be what I'm looking for otherwise I'm not interested.
I'm not sure how you got that from my posts. Your example makes no sense. The asking price is just that. A asking price. Its a numbervthe sellervfeels it's worth. It's nit the same as the number the buyer feels it's worth. It's a number that may or may not be a educated deducted figure or a irrational number because a seller lived there so to them the house us worth x amount. If you're in the clouds on price I'm already under the assumption I'm dealing with a seller who thinks his house craps gold and I'll wait. I'm not gonna go foaming at the mouth bid crazy.
I think part of the problem (and I had agents do this) is that I was prodded to offer more with the whole emphasis on "not losing the house" . What my agents failed to understand I was only willing to pay do much for a house based on what I saw.
When I looked for a house I looked at houses that had certain things I wanted. I set my financial range to what I would like to pay and what I'm willing to go to and I'm not going past this price. I had a range I could start and end.
If the house fell within my must have requirements I looked at it. Then I made a offer based on the needed repairs and what I felt the house was worth in the shape it was in. Looked at what was done to the house. Additions landscaping etc. those things cost money. I didn't bother looking at houses that were above my cap.
The thing is for me I already had a house. I was looking for another house but I wasn't willing to get in a bidding war. The house was worth x to me and that was it. If it fit in my budget and it hadcwhat I wanted I bid on it. I wasn't buying a house on a emotional roller coaster. I refused to write some bs sappy letter to the owners at my agents suggestion. Here is my offer for a house you're selling. There isn't anything else. I've made offers at asking and well below asking. They were all countered. Some I negotiated and fell through at negotiation cause we couldn't meet and some I walked after doing a inspection. Every house I bid on was after they did a huge price drop.
The house I bought just had a big price drop (25,000) it sat in the market for 6 months. I came in at 520,000. Accepted and proceeded. Found a bunch if stuff asked for 5,000 credit at closing. Closed. Took the 5k made my first payment before the first payment was due. The 5k was what it would cost if I hired people. Did it all
People can buy and stretch financially to do as they please. I'm not willing to do that
Quote:
Originally Posted by jaynarie
Probably for the best. Many of us understand that the list price does not necessarily equate to a home's value, so this question means nothing to savvy buyers. The hard-headed buyers will continue to state that they will NEVER go over asking, even if the house is listed below market.
The house listed under market value is listed in that way for a reason. Could be the condition could be the seller hoping for a escalating bid process. Could be thecsellervlookingbforva fast sale with no issues. No seller is going to sit there and say no I'll take less money unless there is a reason
Last edited by Electrician4you; 05-17-2017 at 07:21 PM..
I've never offered over. It's lower or at asking. I refuse to get in a bidding war
Quote:
Originally Posted by Electrician4you
I have absolutely no desire to move to Denver. And assuming I did I would sell here and leverage the offer position with a cash only offer. Under asking. Call me when the higher offer falls out of escrow.
When I was house shopping I never made one offer over asking. All offers I made were considered. In most cases i was accepted. Fell out usually due to inspection issues. In a few it was stupid leased solar panels
Quote:
Originally Posted by Electrician4you
... I'm not sure how you got that from my posts. ...
I think it was your fixation on never going over list price.
Quote:
Originally Posted by Electrician4you
Your example makes no sense. The asking price is just that. A asking price. It's a number that may or may not be a educated deducted figure or a irrational number because a seller lived there so to them the house us worth x amount. ...
Of course the example is a perfect depiction of the error of fixating on list price.
That you have clarified that you agree with me on the list price being decoupled from value while maintaining that you would not pay over list price is interesting, though.
I think it was your fixation on never going over list price.
Of course the example is a perfect depiction of the error of fixating on list price.
That you have clarified that you agree with me on the list price being decoupled from value while maintaining that you would not pay over list price is interesting, though.
. So how is value figured out. For example. The same house I looked at in 2015 the same guy is now selling for 100k more. In fact just listed. (I still get notifications) . He has absolutely no improvements to justify the raise in "value" of 100,000. This is a house I actually bid on. 2015 it was listed at 500,000. I made a offer of 460,000. He declined. House is now $100,000 more FSBO and STILL not selling. His list price was absolutely meaningless to me when I bid. I valued the house to me 460,000. Bank would of valued it about there. Maybe a bit more but not much more. I wouldn't come anywhere near his asking price then and wouldn't even look at it now. Because the house isn't worth 500 much less 600. I actually talked to the guy back in 2015. He drove up and walked in while I was on a tour. Typical d-bag that thinks his house is worth more than it is.
. So how is value figured out. For example. The same house I looked at in 2015 the same guy is now selling for 100k more. In fact just listed. (I still get notifications) . He has absolutely no improvements to justify the raise in "value" of 100,000. This is a house I actually bid on. 2015 it was listed at 500,000. I made a offer of 460,000. He declined. House is now $100,000 more FSBO and STILL not selling. His list price was absolutely meaningless to me when I bid. I valued the house to me 460,000. Bank would of valued it about there. Maybe a bit more but not much more. I wouldn't come anywhere near his asking price then and wouldn't even look at it now. Because the house isn't worth 500 much less 600. I actually talked to the guy back in 2015. He drove up and walked in while I was on a tour. Typical d-bag that thinks his house is worth more than it is.
Of course, we look at recent closed sales, as comparable as possible, and make adjustments to the comps to arrive at a likely sales price.
Gotta be a licensed appraiser to formally say "market value," FWIW.
18 months--2 years ago, it was very common locally to price low to spur multiple offers and some buying urgency.
I have to think of that when people say they will not pay list price or over list.
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