- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
What I'd do different next time: A real estate agent/transaction story/rant
Posted on 8/2/17 at 12:07 pm
Posted on 8/2/17 at 12:07 pm
This'll be long, but hopefully someone can use it and save some time/headache in the future.
Before ranting about the things that have frustrated me, its only fair to make one point, THE ONLY reason, albeit a very important one, I found to benefit from using a realtor. Having the house on the MLS absolutely got this house sold, and got it sold quickly. We had it on FSBO and Zillow with very little action for a month. In the first week listed on the MLS, we had 4 showings, resulting in 2 full price offers.
My mistakes and frustrations-
1. Choosing the realtor.
We met the agent we used for this transaction in a social setting a few years ago. I was friends with her husband, she was friends with my wife. She provided me with some info on a few comps over a few years and I promised her that if we decided to use a realtor to sell, she would be the one. Shouldn't have promised that. I've always known that she is good, but not the best. I shouldn't have put myself in a position that I wouldn't feel comfortable backing out of. I thought it would be fine and wouldn't make that much difference. I was wrong. I should have used who I actually thought was the best.
2. Not negotiating the commission percentage.
I knew for a fact that many, if not most sales in our area were working on a 5% commission. For our house, that meant a difference of $1,650. I operated under the assumption that we'd be pricing and negotiating correctly. We didn't in either case. Now that 1,650 bothers me a little more.
3. Price setting and negotiating the offers.
I trusted her to come up with a good price. In hindsight, she completely underestimated the demand of our market. In the price range of 140-180, there were less than 4 houses in the area for sale. We received two nearly identical offers on the first day of showing. I suggested that we go back to both and explain that we had multiple offers, and that they should submit their absolute best offer. She recommended that we counter to both at full asking price with the same closing costs they asked for in their initial offers. I deferred to what I assumed was her experience in negotiating offers. Bad idea. The buyer whose offer we didn't accept just closed on a comparable house in the exact same neighborhood for a $10,000 higher asking price with ZERO seller concessions.
TL/DR
Don't be a baby. If you wanna know what not to do, read the whole thing.
Before ranting about the things that have frustrated me, its only fair to make one point, THE ONLY reason, albeit a very important one, I found to benefit from using a realtor. Having the house on the MLS absolutely got this house sold, and got it sold quickly. We had it on FSBO and Zillow with very little action for a month. In the first week listed on the MLS, we had 4 showings, resulting in 2 full price offers.
My mistakes and frustrations-
1. Choosing the realtor.
We met the agent we used for this transaction in a social setting a few years ago. I was friends with her husband, she was friends with my wife. She provided me with some info on a few comps over a few years and I promised her that if we decided to use a realtor to sell, she would be the one. Shouldn't have promised that. I've always known that she is good, but not the best. I shouldn't have put myself in a position that I wouldn't feel comfortable backing out of. I thought it would be fine and wouldn't make that much difference. I was wrong. I should have used who I actually thought was the best.
2. Not negotiating the commission percentage.
I knew for a fact that many, if not most sales in our area were working on a 5% commission. For our house, that meant a difference of $1,650. I operated under the assumption that we'd be pricing and negotiating correctly. We didn't in either case. Now that 1,650 bothers me a little more.
3. Price setting and negotiating the offers.
I trusted her to come up with a good price. In hindsight, she completely underestimated the demand of our market. In the price range of 140-180, there were less than 4 houses in the area for sale. We received two nearly identical offers on the first day of showing. I suggested that we go back to both and explain that we had multiple offers, and that they should submit their absolute best offer. She recommended that we counter to both at full asking price with the same closing costs they asked for in their initial offers. I deferred to what I assumed was her experience in negotiating offers. Bad idea. The buyer whose offer we didn't accept just closed on a comparable house in the exact same neighborhood for a $10,000 higher asking price with ZERO seller concessions.
TL/DR
Don't be a baby. If you wanna know what not to do, read the whole thing.
15
Posted on 8/2/17 at 12:23 pm to AUjim
Your points are well taken. I'm not quite on the agents aren't needed train quite yet because if you are busy, good agents do provide a needed service. However, after selling two houses and buying three now I've realized that many agents are way too timid with respect to pushing for the best deal for YOU. They do not want to lose a buyer (or seller if they are on the buyer's side) because that means they have to keep working the house. They want the deal to close as fast as possible and will try to convince you that your asking price, offer, and other terms are too aggressive. No don't ask for that concession, no that counter is insulting and will cause them to walk, if you list for that you won't get any traffic, etc. You have to be willing to do your own research and stick to your guns with your agent. No matter how good they are, the deal is much more important to you than them so you have to look out for yourself.
This post was edited on 8/2/17 at 12:24 pm
Posted on 8/2/17 at 12:29 pm to AUjim
Dude, you're really bitching about $1,650?
Did she go over the neighborhood comparables with you and explain how she arrived at the price she set? Do you know for a fact that the other house was in the exact same condition, did it perhaps have any other amenities yours did not?
Sounds like a lot of your grief could have been avoided had you done your homework as well?
Did she go over the neighborhood comparables with you and explain how she arrived at the price she set? Do you know for a fact that the other house was in the exact same condition, did it perhaps have any other amenities yours did not?
Sounds like a lot of your grief could have been avoided had you done your homework as well?
Posted on 8/2/17 at 12:39 pm to AUjim
quote:
The buyer whose offer we didn't accept just closed on a comparable house in the exact same neighborhood for a $10,000 higher asking price with ZERO seller concessions.
Doesn't mean a thing. The house could be updated, have better finishes, be on a better lot, have a better floor plan, etc.
Don't beat yourself up after the fact. You're having sellers remorse in that you think you left money on the table. Let it go. Maybe you did and maybe in your specific situation you did the best possible.
Posted on 8/2/17 at 12:59 pm to AUjim
Thanks for posting. I'll have to remember when I can ever afford to buy a house.
Posted on 8/2/17 at 1:13 pm to AUjim
quote:
this neighborhood is full of spec houses that are all very similar.
Not if the selling prices range from 140k-180k.
Posted on 8/2/17 at 2:00 pm to AUjim
I'm in the middle of purchasing a home where neither side is using a real estate agent, and I'm not really sure what purpose the agent would provide to us at this point.
Granted, this is my first home and I've never used a real estate agent before, I just don't see what they would have done for me. It's pretty easy to find homes online. What else do they do? Put together the purchase agreement? That form is easy to find online, or through other resources.
Granted, this is my first home and I've never used a real estate agent before, I just don't see what they would have done for me. It's pretty easy to find homes online. What else do they do? Put together the purchase agreement? That form is easy to find online, or through other resources.
Posted on 8/2/17 at 2:48 pm to AUjim
a good bit of advice I have learned is if you are looking for a listing agent, find a piece of property they are currently listing and call them out of the blue and have them show you that property, ask questions while they are showing it ask questions about negotiations, etc, you can learn a lot about them and their style
dont use an acquaintance as an agent, it needs to be strictly business
dont use an acquaintance as an agent, it needs to be strictly business
Posted on 8/2/17 at 4:41 pm to AUjim
I had a similar case when selling our first home. Had an offer on the first day for list price less $5k in closing. My agent said it was as good as I was going to get, but had 2 other showings scheduled.
We accepted offer 1. Other two people saw the house and offered list price with no concessions.
We accepted offer 1. Other two people saw the house and offered list price with no concessions.
Posted on 8/2/17 at 6:22 pm to AUjim
Just listed my house today. Been here 14 yrs and bought directly from builder last time. So over the years figured I always FSBO and save the commission. I am very glad I have this agent. Helping with buying the other house and way too many unknowns that we probably wouldve made a poor decision that might cost more than the commission alone. Now we just need/want full asking price!
Posted on 8/2/17 at 9:11 pm to AUjim
Jim,
Thanks for sharing in detail what you went through. It's the way we can all learn from others mistakes. I have not found a realtor significantly helpful in the three moves I made so far in my life.
It's why I like this board. It's not the OT where we try and bash each other.
Thanks for sharing in detail what you went through. It's the way we can all learn from others mistakes. I have not found a realtor significantly helpful in the three moves I made so far in my life.
It's why I like this board. It's not the OT where we try and bash each other.
Posted on 8/3/17 at 3:09 am to AUjim
quote:
In hindsight, she completely underestimated the demand of our market.
Perhaps, but it is also possible she knew she had a quick sale and easy money at her chosen price point.
Real Estate agents are normally a few notches down the honesty tree from buy here pay here used car salesmen, especially when acting as a dual agent.
Posted on 8/3/17 at 12:34 pm to AUjim
:( I wish houses only cost 140-180k here in North Dallas 
Posted on 8/3/17 at 9:00 pm to AUjim
This thread does prove a few things
1. Realtors play a vital role in moving many markets across the US. The bigger the market, the more likelihood a realtor can provide value.
2. The experience of the realtor is paramount. Your sisters cousin who got her license to do 1-2 transactions a year is probably not the best choice for brokering your investment worth hundreds of thousands of dollars.
Out of curiosity, did going FSBO and sitting affect your decisions to not be more assertive to enter into a multi offer situation? I absolutely think your agent is in the wrong not to do so but just curious if time lost or confidence lost by sitting played a factor?
1. Realtors play a vital role in moving many markets across the US. The bigger the market, the more likelihood a realtor can provide value.
2. The experience of the realtor is paramount. Your sisters cousin who got her license to do 1-2 transactions a year is probably not the best choice for brokering your investment worth hundreds of thousands of dollars.
Out of curiosity, did going FSBO and sitting affect your decisions to not be more assertive to enter into a multi offer situation? I absolutely think your agent is in the wrong not to do so but just curious if time lost or confidence lost by sitting played a factor?
Posted on 8/3/17 at 9:41 pm to AUjim
I mean maybe she could have negotiated better but it does sound like her counter got them to come up to full ask if I am reading this right. I am not sure $4,500 is worth turning down a full price offer to gamble on the market for a $160k house
Posted on 8/4/17 at 11:22 pm to AUjim
quote:
I suggested that we go back to both and explain that we had multiple offers, and that they should submit their absolute best offer.
As a buyer I would have walked away after hearing this. I'm not negotiating against myself. Especially since there are other houses for sale in the neighborhood at similar prices.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News