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OT- Real Estate
Posted on 3/13/13 at 6:07 pm
Posted on 3/13/13 at 6:07 pm
How much info and how wordy are you supposed to be when making an offer to the listing agent? I'm fluent in mortgages but the real estate side of it is new to me.
I don't have a buyer's agent, I don't really think I need one. I can pull comps and read latin on my own.
I don't have a buyer's agent, I don't really think I need one. I can pull comps and read latin on my own.
4
Posted on 3/13/13 at 6:55 pm to deeprig9
"Hey bitch, lemme holla atchoo. I can have dat house fo tree fitty?"
This post was edited on 3/13/13 at 6:58 pm
Posted on 3/13/13 at 6:56 pm to deeprig9
Offer low and come up to 10% below your final offer after some haggling. Then once you can't get any more off the price ask for an allowance for any repairs/remodeling you have to do, like replacing that purple shag carpet or the old appliances. As the final offer, ask the realtor to cut the commission a little to seal the deal.
Posted on 3/13/13 at 7:15 pm to AlaCowboy
quote:
As the final offer, ask the realtor to cut the commission a little to seal the deal.
That is my plan, but there isn't much of the other type of negotiating to do. If they don't accept the offer, and their counteroffer is shitty or otherwise unacceptable, my second and final offer will include a paragraph about the listing agent coming down off his commission because I'm not bringing an agent in on the deal.
According to the internet, GA law says a seller's agent must present all offers to the seller as they are received/written.
My basic question isn't about how the play the game, it's how much info do you put in an offer? 1 page? lots of latin? 8 pages? It's just an offer, not a contract.
Posted on 3/13/13 at 8:01 pm to deeprig9
Call your boy rattletrap. He's in the biz.
Posted on 3/13/13 at 8:23 pm to retooc
quote:
Call your boy rattletrap. He's in the biz.
That's pretty much why I don't think I need an agent. Some of the stupidest people I've ever met in my life are successful RE agents. That's not to say all agents are stupid, just that it doesn't take a genius to be one.
Posted on 3/13/13 at 9:04 pm to deeprig9
I don't think your thoughts on a second offer requesting a reduction by the selling agent will help you in any way.
First, your lack of a buying agent does not in any way diminish the work the selling agent does for the property owner. You are not diminishing his/her value so why should his/her compensation be lowered?
Second, just because the agent has to show the offer doesn't mean the agent is bound by it when he/she already has a contract with the seller. A seller can't accept your offer because it includes a lower commission to the agent and then turn around to the agent and say "I'm ignoring our agreement simply because a buyer made an offer that says I can."
Third, and most important, you're just going to tick off the agent. Do you think that agent is then going to advocate for your offer? Of course not.
First, your lack of a buying agent does not in any way diminish the work the selling agent does for the property owner. You are not diminishing his/her value so why should his/her compensation be lowered?
Second, just because the agent has to show the offer doesn't mean the agent is bound by it when he/she already has a contract with the seller. A seller can't accept your offer because it includes a lower commission to the agent and then turn around to the agent and say "I'm ignoring our agreement simply because a buyer made an offer that says I can."
Third, and most important, you're just going to tick off the agent. Do you think that agent is then going to advocate for your offer? Of course not.
Posted on 3/13/13 at 9:17 pm to deeprig9
quote:
That's pretty much why I don't think I need an agent. Some of the stupidest people I've ever met in my life are successful RE agents. That's not to say all agents are stupid, just that it doesn't take a genius to be one.
then why in the hell are you asking advice of this board?
Posted on 3/13/13 at 9:30 pm to deeprig9
Have you already approached the listing agent?
The best thing you can do is get a buyers agent who is willing to cut you in on their share (the work is already done).
They can negotiate the issues with the home (carpet allowances, protections for inspections). And cut you in on their percentage.
What portion goes to the buyers agents these days? 3? 4? At the bottom of the real estate bubble, i had seen huge incentives to the buyer side.
If you are only interested in language on the offer... keep it short. The seller doesnt care what you think. He/she only cares about their bottom line and when the home sells.
The best thing you can do is get a buyers agent who is willing to cut you in on their share (the work is already done).
They can negotiate the issues with the home (carpet allowances, protections for inspections). And cut you in on their percentage.
What portion goes to the buyers agents these days? 3? 4? At the bottom of the real estate bubble, i had seen huge incentives to the buyer side.
If you are only interested in language on the offer... keep it short. The seller doesnt care what you think. He/she only cares about their bottom line and when the home sells.
Posted on 3/14/13 at 2:00 am to Dandy Lion
quote:
then why in the hell are you asking advice of this board
exactly. You shite on rattle but ask the board a question he's probably best suited here to answer. go frick yourself
Posted on 3/14/13 at 8:15 am to meansonny
quote:
The best thing you can do is get a buyers agent who is willing to cut you in on their share (the work is already done).
Sonny, while I like what you have to say on most issues, this is BAD advice. Here's why.
Standard commission for the listing agent is 6%. When a buyer's agent is brought to the table, it's typically an automatic split of that commission to 3% each. Thus, neither agent feels they have any room to negotiate their share to make the deal happen, whereas if you are working only with the property's listing agent, they will be more inclined to reduce their commission in order to get the deal done. This is ESPECIALLY true in the current market. A done deal at 4% commission (which is a reasonable request and still more than they would get if a buyer's agent were brought in....and they know most buyers will do that) is better than a house sitting for 12 months with nothing to show and continued marketing resources and time being dumped into it.
Play this smart. If the listing agent is truly trying to help the seller, they will assist you in making whatever offer you want to make. They can advise you differently, in favor of the seller, but most of them will be pretty honest in working with you to get the deal done. I've done this four times myself and am now doing the same thing working with my mother to buy a home near us, closing on April 4th. The listing agent has been superb and, frankly, she has probably communicated with and helped us more than she has the seller.
This post was edited on 3/14/13 at 8:16 am
Posted on 3/14/13 at 11:53 am to S1C EM
frequent contact with listing agent, loca athens guy, has offered much assisyance, wants to be our agent without coming out and saying it
Posted on 3/14/13 at 1:12 pm to S1C EM
quote:
Standard commission for the listing agent is 6%. When a buyer's agent is brought to the table, it's typically an automatic split of that commission to 3% each. Thus, neither agent feels they have any room to negotiate their share to make the deal happen, whereas if you are working only with the property's listing agent, they will be more inclined to reduce their commission in order to get the deal done. This is ESPECIALLY true in the current market. A done deal at 4% commission (which is a reasonable request and still more than they would get if a buyer's agent were brought in....and they know most buyers will do that) is better than a house sitting for 12 months with nothing to show and continued marketing resources and time being dumped into it.
Glad I read the whole page before responding first, b/c ^this is basically what I was going to write and that's only even if the seller won't pay for all closing costs.
Overall, markets around the US are rebounding. The rates are still very low, refinancing is easier/more attractive than it's ever been, the backlog of foreclosures are just about done, b/c many banks are now allowing short sale write offs.
This is a really good year to buy. There's also a lot of tax breaks out there for different types of home purchases, (for income producing and not incoming producing as well.)
In NC you get a 30% renovation write off (that can carry for 3 years) on fixing up a nationally registered historic home, if it's your primary residence. You can get a 20% renovation credit from Fed Taxes if it's an income producing property.
Posted on 3/14/13 at 1:34 pm to CockInYourEar
listing agent said i can just send him my offer in whatever form and we'll get together to fill in any blanks. i think he knows that i know what yall are talking about re no buyer agent, which was my plan from the beginning just based on my mortgaga background
Posted on 3/14/13 at 2:00 pm to S1C EM
Ive already seen a rebound in the cumming market where there are multiple offers on homes. Sales prices right now are higher than list prices.
Thats why i recommended finding a hungry buyers agent who would incentivize for the work and referrals.
As mentioned in my post. The seller is looking at walkaway money. Not how much gets reduced on the agent and sales price.
If they are getting offers, your demands might scare them away as a problem child. Because of reduced quality inventory in certain markets... more of the negotiating power has shifted to the seller as of late. If you really like the home, i wouldnt get too cute trying to nickel and dime.
Thats why i recommended finding a hungry buyers agent who would incentivize for the work and referrals.
As mentioned in my post. The seller is looking at walkaway money. Not how much gets reduced on the agent and sales price.
If they are getting offers, your demands might scare them away as a problem child. Because of reduced quality inventory in certain markets... more of the negotiating power has shifted to the seller as of late. If you really like the home, i wouldnt get too cute trying to nickel and dime.
Posted on 3/14/13 at 2:22 pm to meansonny
quote:
Ive already seen a rebound in the cumming market where there are multiple offers on homes. Sales prices right now are higher than list prices.
All markets are rebounding but, at least in my area, you don't see multiple offers coming in on any property close together (unless it's a steal or a short sale, in which case all bets are pretty much off).
My point is very simply that working with the listing agent and not including a third party who, at this point in the transaction will do little to no work on the deal, is the way to go. If a buyer's agent gets involved flexibility goes down the shitter.
The seller's hands are tied on what price they can take based on two things: What they owe the bank and what they owe the agent. Right now, "walkaway money" is not a luxury most sellers have to consider. Breaking even and getting out without a short sale is more realistic in the current market. If the agent comes off the 6% commission rate, the seller is losing nothing. The agent is sacrificing a percentage of the commission to make room for the price to be lowered to meet the potential buyer's demands. Few sellers are in the position of being able to sit out a reasonable offer for a better one right now.
Posted on 3/14/13 at 4:21 pm to deeprig9
You have to make all offers through the listing agent. The agent will take your offer, draw up the paperwork, and take your check for earnest money to the seller. After all the negotiating with the seller (through the agent) then tell the agent your final offer will be $XXX,XXX, ehich is a few thousand less than the last counteroffer and ask the Dunwoody housewife agent to cut her commission a little (seller pays it) and that will be your final offer.
It's all the choice of the agent then. They expect the car dealer to cut their profit when they buy that Lexus.
They can then either close the sale or wait for the next sucker, er, client, to come along.
It's all the choice of the agent then. They expect the car dealer to cut their profit when they buy that Lexus.
They can then either close the sale or wait for the next sucker, er, client, to come along.
Posted on 3/14/13 at 4:48 pm to S1C EM
quote:
Few sellers are in the position of being able to sit out a reasonable offer for a better one right now.
I am in this position and going to be loving it. House going on the market around May 1 and we will be below average price for the hood and still making out pretty well.
My situation is rare right now though for sure.
Posted on 3/14/13 at 8:10 pm to meansonny
Listed for almost 4 months, we were the first showing, last Sunday. I've also comped out the neighborhood, I just sent in my offer which is a split between the two (and only two) closest comps in the last 6 months, divided by sq ft, of course. It's a fair offer.
Actually, if I had a buyer's agent, what I've offered tonight is basically what the seller would end up getting if I had an agent and offered list. It's a nice starting point, and not an arbitrary assumption of value. A lack of comps to support the list price makes it pretty impossible for any reasonable seller to get through a finance contingency with anyone using FHA. Unless he's prepared to hold out well into the summer buying season for more comps to pop up and better support a higher value, then he's got to take my first offer very seriously. That being said, I don't expect him to take the first offer.
The longer he waits, the older that roof gets... tick tock.
Actually, if I had a buyer's agent, what I've offered tonight is basically what the seller would end up getting if I had an agent and offered list. It's a nice starting point, and not an arbitrary assumption of value. A lack of comps to support the list price makes it pretty impossible for any reasonable seller to get through a finance contingency with anyone using FHA. Unless he's prepared to hold out well into the summer buying season for more comps to pop up and better support a higher value, then he's got to take my first offer very seriously. That being said, I don't expect him to take the first offer.
The longer he waits, the older that roof gets... tick tock.
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