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I am trying to come up with an offer price. The house is located in a nice neighbor and in a nice location (cul-de-sec). However, it might have been overpriced at $500,000 currently and has been on the market for a close to a year. The seller left out of country about two months ago, so there appears to be a high motivation to sell.
I don't have a buyer's agent at this point.
First, Do I need to get an agent for this transaction?
Secondly, I was thinking I can go up to $450k, but for an initial offer I hate to make an offer with my price in mind. But, what is going to be a fair offer price?
Please help me with a good negotiation strategy here.
I am trying to come up with an offer price. The house is located in a nice neighbor and in a nice location (cul-de-sec). However, it might have been overpriced at $500,000 currently and has been on the market for a close to a year. The seller left out of country about two months ago, so there appears to be a high motivation to sell.
I don't have a buyer's agent at this point.
First, Do I need to get an agent for this transaction?
Secondly, I was thinking I can go up to $450k, but for an initial offer I hate to make an offer with my price in mind. But, what is going to be a fair offer price?
Please help me with a good negotiation strategy here.
I would use a buyer's agent.
Does your local municipality have its records on line? If so, look at comparable properties that have sold recently and use those to write your offer NOT the asking price. An agent in your area can probably assist you.
Obviously the property is overpriced but unless you take a look at what comparable properties have sold for you can't tell if it is $100K or $50K over priced. I recently looked at two properties that are at least $200K over priced.
Not getting your own agent is probably the most expensive decision you'll make on the most important investment in your lifetime to date.
My brother was lured by a large credit union's rebate on real estate services. He found this offer after I had already lined him up with probably one of the top negotiators in our area (broker/owner of a very large franchise in Virginia). Yes sir, he got that 1% rebate $4500, but he also paid considerably more for the home. His offer was accepted first round with no counter offers and the home had been on the market for almost 6 months.
In most areas the real estate agents fiduciary responsibility is to the seller (whether they are obtained by the buyer or not), because the seller is the one paying them.
Even if you obtain your own agent to run comps and submit an offer do not disclose your maximum price to them as they are legally obliged to reveal this to the sellers agent.
(I learned this the hard way on my first purchase, I said "I would pay the asking price, but lets put in an offer of X". The sellers response was either pay full ask or I'll take it off the market!
I later took the real estate agents classes to become a more informed consumer and learned about this fiduciary responsibility - makes sense that agents ultimately work for the person who is going to pay them! (and the higher the selling price, the higher the commission!)
In most areas the real estate agents fiduciary responsibility is to the seller (whether they are obtained by the buyer or not), because the seller is the one paying them.
Even if you obtain your own agent to run comps and submit an offer do not disclose your maximum price to them as they are legally obliged to reveal this to the sellers agent.
...
Not true. Most areas have buyer agency with fiduciary responsibility to the buyer. Even those areas that may have a default of subagency have buyer agreements available that will require the agent to only represent the buyer.
When did your experience happen and where? What you said used to be true when subagency was prevalent. It may also depend on your state.
[quote=winknod;13396289]In most areas the real estate agents fiduciary responsibility is to the seller (whether they are obtained by the buyer or not), because the seller is the one paying them.
Even if you obtain your own agent to run comps and submit an offer do not disclose your maximum price to them as they are legally obliged to reveal this to the sellers agent.
The above highlited quote is completely inaccurate.
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