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Started By
Message
re: Listed house on Thursday and have a "lowball" offer
Posted on 12/7/14 at 3:49 pm to BigAppleTiger
Posted on 12/7/14 at 3:49 pm to BigAppleTiger
quote:
Unless the realtor is the listing broker, it is not up to them to alter the contract he has signed.
Of course the agent can take less commission.
quote:
Also, why try to undercut a realtor that has brought an offer after two days? I know you don't know the ins and outs of real estate by your question or think that a realtor is not necessary- but that's another question and answer altogether.
Why not give them the opportunity to make the sale?? I guarantee you they will ask you to cut your price. If the commission is 6% ask them to lower it to 3% and you will sign the deal. They may not take it but they may very well rather 3% now and not spend any more time and money trying to sell the property. They may not bring another offer for months.
2
Posted on 12/7/14 at 3:53 pm to Golfer
Listing price is firm for at least 3-4 weeks
Posted on 12/7/14 at 3:55 pm to I B Freeman
Our house will sell. Agent is already listing at 5% I appreciate the banter but we're going to counter at $1k below asking and 1/2 of what they were asking in closing costs.
Posted on 12/7/14 at 6:01 pm to Golfer
quote:
Our house will sell. Agent is already listing at 5% I appreciate the banter but we're going to counter at $1k below asking and 1/2 of what they were asking in closing costs.
Ok but I would at least discuss the issue with the agent. They may need the money and would prefer a bird in the hand if you see what I mean.
It is an opportunity for them. It is not something negative.
On a $200K sale you are giving the agent $10000--cut that in half and you are only $2000 away from your offer. That is not unreasonable at all.
This post was edited on 12/7/14 at 8:19 pm
Posted on 12/7/14 at 7:42 pm to I B Freeman
quote:
Ok but I would at least discuss the issue with the agent. They may need the money and would prefer a bird in the hand if you see what I mean.
My agent doesn't need the money
Posted on 12/7/14 at 8:18 pm to Golfer
quote:
My agent doesn't need the money
Ok I am sure they are happy you have decided that for them.
Good luck. Hope it sells and the agent gets full commission for less than a weeks work.
If it sells in less than a week within $1000 of the asking price you have to wonder did you price it too cheap. I guess the agent helped with that too.
This post was edited on 12/7/14 at 8:21 pm
Posted on 12/7/14 at 8:25 pm to Golfer
Same thing happened to me. I was selling it by owner and the buyers agent was telling me that the first offer is almost always the best. We did our homework and knew our house would sell without giving it away. It was hard but we walked away and came out with $15k more 2 weeks later.
Posted on 12/7/14 at 8:29 pm to I B Freeman
quote:
Ok I am sure they are happy you have decided that for them.
Yea, you are clueless here...
quote:
Good luck. Hope it sells and the agent gets full commission for less than a weeks work.
Again, I'm already at 5% which I felt is fair.
quote:
If it sells in less than a week within $1000 of the asking price you have to wonder did you price it too cheap. I guess the agent helped with that too.
I set the price. And I know the market and what is fair based on the location, amenities in the house, and type of buyer.
Posted on 12/7/14 at 8:38 pm to Golfer
I think his confidence in his knowledge of La. Budget and tax breaks has led him to be confident in areas he really knows very little about.
Posted on 12/7/14 at 9:10 pm to Golfer
I showed my wife your house and she was upset we could not buy it
Posted on 12/7/14 at 9:48 pm to BACONisMEATcandy
quote:
I showed my wife your house and she was upset we could not buy it
Yea, I'm sure the price is excellent for your market
Surprised she liked the office, though.
This post was edited on 12/7/14 at 9:49 pm
Posted on 12/7/14 at 10:01 pm to RebelOP
quote:
I'd counter with what your asking. Still early.
this
Posted on 12/8/14 at 12:00 am to Golfer
She secretly roots for LSU so she won't have to listen to me bitch and moan
Posted on 12/8/14 at 5:48 am to I B Freeman
quote:
On a $200K sale you are giving the agent $10000--cut that in half and you are only $2000 away from your offer. That is not unreasonable at all.
I haven't seen it stated anywhere that buyers agent has no representation, nor that sellers agent would receive full 5% commission if buyers had no agent, which means he's probably offering 3% to buyers agent, and his agent will make 2%.
3% + 2% = 5% Total Commission. Between 2 parties.
So let's go on your 200k
His agents commission is 4k on the transaction. Let's assume somewhere in the hood of 80/20 split with brokerage. Now we're down 3200.00. Assuming minimal advertising, professional photographer, showing service, $3000. So let's assume for the next 30-45 days before closing buyer has made offer contingent on inspections and appraisals. Agent will be in close contact with buyers agent to make sure all vendors can access the home to do their due diligence. If repair counters or appraisal counters need to be made, agent will negotiate back and forth to try to come to agreement between parties. After this typical 30-45 day period from binding contract to closing agent will receive that outrageous sum of 4k to be sliced up as stated above.
Posted on 12/8/14 at 10:55 am to Golfer
Golfer, since you said you set the price, how did you arrive at your asking price?
I've seen some asking prices lately that are in no way set in any sort of reality - things like $10/sq ft more than comps would support.
A lot of people have a real inflated value of what they believe their house is worth. Not saying that is true of you, of course, but it might be that the offer you got is closer to true value, or it might be the buyer screwing around with a low offer to see if you will bite.
If you are confident that your asking price is set in sufficent, supported reality, I'd hold to my guns for now.
I've seen some asking prices lately that are in no way set in any sort of reality - things like $10/sq ft more than comps would support.
A lot of people have a real inflated value of what they believe their house is worth. Not saying that is true of you, of course, but it might be that the offer you got is closer to true value, or it might be the buyer screwing around with a low offer to see if you will bite.
If you are confident that your asking price is set in sufficent, supported reality, I'd hold to my guns for now.
Posted on 12/8/14 at 12:41 pm to LSUFanHouston
quote:
Golfer, since you said you set the price, how did you arrive at your asking price? I've seen some asking prices lately that are in no way set in any sort of reality - things like $10/sq ft more than comps would support. A lot of people have a real inflated value of what they believe their house is worth. Not saying that is true of you, of course, but it might be that the offer you got is closer to true value, or it might be the buyer screwing around with a low offer to see if you will bite. If you are confident that your asking price is set in sufficent, supported reality, I'd hold to my guns for now.
I have an investor that anytime a particular property in an area hits MLS we write offer that is based on rental income. It's a technical number. About 90% of his offers are rejected. But the 10% we get to close allow him to hit his margins/acquire more properties.
Could be exact same scenario.
Posted on 12/8/14 at 12:56 pm to LSUFanHouston
quote:
I've seen some asking prices lately that are in no way set in any sort of reality - things like $10/sq ft more than comps would support.
Asking is within $2psf of the comps that have sold in the last 12 months and $9psf less than the comp that's for sale a block over.
Posted on 12/8/14 at 1:12 pm to Golfer
quote:
Asking is within $2psf of the comps that have sold in the last 12 months and $9psf less than the comp that's for sale a block over.
Sounds like the offer was from a bargain hunter. I think you stick to your guns and keep going.
Posted on 12/8/14 at 1:14 pm to Tigerholic
quote:
I was selling it by owner and the buyers agent was telling me that the first offer is almost always the best.
Freakonomics has a pretty good piece on why agents try to sell on the first offer. They don't want put in possibly 3-4 months extra work for what amount to a few hundred dollars.
Posted on 12/8/14 at 1:14 pm to Tigerholic
(no message)
This post was edited on 12/8/14 at 1:17 pm
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