Home Buying in 85375>Question Details

Rtjsleepyhol…, Home Buyer in Sun City West, AZ

How do I know my Realtor is being upfront with me on list price, when he says most of the desireable homes are going for list price. only?

Asked by Rtjsleepyhollow, Sun City West, AZ Wed Jul 20, 2011

I realize realtors work on commission. The higher the sale price the more commission

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Answers

23
It always makes me nervous when a client doesn't "trust" their Realtor enough, to go online and ask a question like this. If you don't trust your Realtor... why are you working with them?

That being said, your Realtor should be able to provide you with listing sheets of recent sales showing that the list price is the same as as the sale price. If they can't manage to do that, or they won't... then your distrust may be deserved.

Good luck.
1 vote Thank Flag Link Wed Jul 20, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
LISTING PRICE

Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REO’s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.

If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMA’s, you will see the trends.
0 votes Thank Flag Link Tue Jul 26, 2011
Most Realtors provide the seller with a market summary for all homes active, pendng and sold in the last 6 months. Also Realtors know that if a home is overpriced it will not sell. They onlky make money when your home Sells.
0 votes Thank Flag Link Tue Jul 26, 2011
I would like to add that if homes r going for list price in this DOWN ECONOMY. Then realtors and sellers in THAT TARGET MARKET or that particular wares ....IS VERY LUCKY.of course a realtor is going to say that if all the other sales in that area are selling like that.these areas ere few and that is great for the realtor and seller but if u r a buyer then I would suggest as most everyone else that u do your homework WITH THE REALTOR and study the comps.NOW I would also suggest buying in a different target because from what I have seen........Fsbo, reos,forclosures..are ALL SELLING WAY WAY BELOW MARKET.....its hard to ask and get a high price and think the home is worth list when all the banks in MOST area r tryingvto unload MASSIVE amounts of forclosures.
I know realtors want to help and want the best for their clients......but sometimes they don't understand the buying power that is now available.I AM ONLY STATING my opinion in my area!
0 votes Thank Flag Link Tue Jul 26, 2011
If you do not believe your Realtor, just ask your Realtor to show you the Pending and Sold comparables for the past 3-6 months that substantiate their advice. Look at Days on Market, List Price, and Sold Price. That is a very easy way to tell if your Realtor's advice is sound.
0 votes Thank Flag Link Tue Jul 26, 2011
Well the list price is what many of the sellers want and they have stuck to their guns, saying they are already selling at a big lose to what they paid! And by the way Realtors are up front always as it is part of our ethics, and the commission on the few thousand you think we are trying to save from being bargained off is not all that much that we would be driven to not be upfront or would not advise you to not negotiate. More like the Realtor you have knows their area and knows where the sellers are at with their properties!
0 votes Thank Flag Link Tue Jul 26, 2011
I'm curious...do you not trust this agent (because he is not saying what you want to hear) or do you simply not trust real estate agents all together? You have not given any facts to substantiate distrust in your agent,
0 votes Thank Flag Link Tue Jul 26, 2011
Write an offer for whatever price you feel is appropriate. If you get the house, you were right. If not, your agent was right. Seems like the simplest test out there. All the numbers show this currently is a sellers' market - very low inventory and fairly high demand. Having said that, list price isn't an automatic. Neither is market price.


Ron - one of these days, I only hope that powers that be at Trulia finally remove your answers for just how incredibly inappropriate they are. Consumers don't come here to get brow-beaten.
0 votes Thank Flag Link Sat Jul 23, 2011
Dear Rtjsleepy:

One way to double check is ask your Realtor to put some homes into a listing cart or portal for you. You can then track what the selling prices actually were in relation to the list price. You can do this yourself if you wish.

A Realtor can also provide you a list of sold homes in the area you are looking. The sold prices will show.

May I wish you the best.

Jeff Masich
HomeSmart Realty
Arizona Homes and Land
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Thu Jul 21, 2011
You need to work with a Realtor that you trust. It is important to check out the background of who you are working with. I have been in the real estate industry for over 25 1/2 years now and have many designations and awards in the industry. It is important that your Realtor is working for you...and not just trying to obtain a commission. You can check out the comparable properties yoursefl through a variety of different web sites.....i.e. azcentral.com or zillow.com for example. The real estate agent should show you the current properties for sale, under contract and those sold withoin the past 3-6 months for you to review prior to making an offer on a property.You can always use a different Realtor if you are unhappy with the one you are currently working with.

Thanks;
Lynne A Shapiro,PC,BA,CMPS,CRS,GRI
West USA Realty
0 votes Thank Flag Link Wed Jul 20, 2011
You need to work with someone you trust. Ask your friends and family for referrals, don't just use a random Realtor. Check out their ratings and continuing education. Many of us have area's we in which we specialize, such as Bank Owned, Short Sales, Condo, Single Family, etc. If an agent says they specialize in regular sales, you need to understand all agents do. Google their name. If you were in Florida, I could give you more resources. I represent three banks with their REO listings and one asset management firm. Do note that many Bank Owned Properties and properties that are agressively priced do go for the full list price or more. Best of luck. If you ever come to the Bradenton/Sarasota Area, look up my team.

http://www.sarasotarealtyteam.com

Kent
0 votes Thank Flag Link Wed Jul 20, 2011
Stop we do not motivate on Commission only, Tell your Realtor to offer what you feel you wish to pay and that if they can not comply to that request, you will find a Realtor or agent that will!
0 votes Thank Flag Link Wed Jul 20, 2011
Short answer, ask him to show you the data he is using to suggest the offer price.

Whenever a client is ready to submit an offer, it is good practice to review recent sales of similar homes in the neighborhood. This should give you a very good idea of the local real estate market and how much you should offer.

Of course it is not true that "most of the desirable homes are going for list price". Please remember that the asking price is how much the seller wants for the house. Some sellers will ask unrealistically high prices. You should never offer asking price without researching the local market first.

Good luck!

Jose Dias, REALTOR
(623) 418-5700
Jose@MyFirstHouseAZ.com
Realty One Scottsdale
0 votes Thank Flag Link Wed Jul 20, 2011
I've been selling homes in Arizona for over 25 years. The most important qualities you need to have in a realtor are knowledge of the current market you are dealing with and honesty ... if you have that - you will do fine. Speak to your Realtor - let him/her know what is bothering you. :)
Best of luck,
Anna
Web Reference: http://AnnaCarlOnline.com
0 votes Thank Flag Link Wed Jul 20, 2011
You don't. But you need to examine the motive of your agent..We get paid when you purchase a home.. In my market most homes sell for 94-96% of list price. Most bank owned homes (REO) sell for 99-101% of list. Ask the right questions also trust your agent, his/her goal is to get you into a home so they can receive the benefit of pay for work. But if you think it matters weather you buy something for 25-50k more...take a look at the commission on this if the commission is 3% of sales price 25k is $750 50k is $1500. I don't know about your agent but I would rather get my client a screaming deal on a home than worry about less than 1% of my annual pay.
Ok to sum up what does it profit an agent to lie to you...they risk loosing your trust and loosing all commission just so you can purchase something fast...not likely.

I keep seeing comments from Realtor haters or sales haters that really do not understand our industry... we help people purchase homes for income to feed our families.. most of us (Realtors) wouldn't risk our job for an easy sale. For one we can loose our license in the state and second. We love getting our clients what they want for less.
That being said, there are buyers like you that haven't worked a deal in this new economy where banks control the market. The price they offer is much lower than the competition so yes they are probably sell with or with out your help.. your agent is probably just letting you know the facts so that you are prepared and don't loose the home you want.
Best of luck to you,
Brad
0 votes Thank Flag Link Wed Jul 20, 2011
Your agent should have provided you with all of the MLS printouts showing you the most recent comparable sales in your subdivision with the sold price and date. If he or she did not, then you should be concerned enough to get another Realtors opinion. It's very important that you trust the person you hire.

Hope this helps!

Deborah Griffin
HomeSmart, International Scottsdale
Cell: 480-403-1860
DeborahinAz@me.com
0 votes Thank Flag Link Wed Jul 20, 2011
A short answer is: you won't know.

A more detailed answer is: you won't know if your Realtor is being straight with you regarding the list price--even if s/he provides you a CMA--unless you verify that info either via a third-party, or on your own. Let's face it: it's easy for one to manipulate the data in ways to skew the results. For example, an agent could cherry-pick the 3 highest priced comps to yield a higher CMA valuation; whereas, another agent could use the 3 lowest priced comps to yield a lower valuation. (I've experienced both cases first-hand.) As an engineer/investor, I can assure you that the statistical games don't end there; one could further analyze that data using a variety of methods. Yet, in the end, all you should really care about is getting great value for whatever price that you'd pay.

The experts can give you a good idea of what the current market value of a property is, but no one else can help you to determine whether or not you'd get the best value for that price. That's a personal decision. For me, after having listened to my Realtors, and after having done my own analysis, I'm happy if the numbers work. In other words, that potential purchase would be a deal with great value to me, and that's all I need to know to pull the trigger on yet another deal.
0 votes Thank Flag Link Wed Jul 20, 2011
Hi -
Speak to your realtor - explain your concerns - he/she will most likely ease your concerns. There are some excellent buys in SCW and the summer months are an excellent time to house shop in the community. When the winter visitors return, you will most likely have more competition for properties in SCW. Ask your realtor to explain the current market conditions in SCW to you - ask to see the comps - and I'm sure you will feel more confident about your purchase decisions. Good luck with your home purchase!
Best regards,
Anna
Web Reference: http://AnnaCarlOnline.com
0 votes Thank Flag Link Wed Jul 20, 2011
If your Agent gave you a CMA showing sold properties comparable to the one you want to buy, you should be able to determine if what is being suggested is valid. If homes in that are are selling at or close to the listed price than the agent is telling you what he/she believes should be your offered price. Keep in mind that insulting a seller with a low ball offer can hurt you or help you depending on the seller's reaction to the offer. Just because you make an offer it doe not necessarily follow that the seller has to counter. They can reject your offer outright with no explanation.
0 votes Thank Flag Link Wed Jul 20, 2011
Hi, Your agent can only advise and guide you, the client is in the drivers seat always. I always do a comparative market analysis for my clients so they can see, directly from the local mls, what homes are selling for.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Wed Jul 20, 2011
It may sound like he is pushing you to pay full price, but with my experience if the price is right then the chances are you will get in a bidding war. If this happens then you will pay more than list,
Most homes are now priced to buy. If you want the home buy it.
Rodney
0 votes Thank Flag Link Wed Jul 20, 2011
Hello,
Have your agent go over a comparable market analysis with you which will show recently sold homes that are similar to what you are looking for in the area that interests you.

That way you can see the list to sales price ratio as the statistics will speak for themselves.

Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Wed Jul 20, 2011
Your realtor should be able to provide you a CMA (Comparative Market Analysis). Does the market analysis back up what he/she is stating?

If what the realtor is saying is making you uncomfortable, its probably the true. Realtors interpret the market, they do not make it. Buyers decide what your home is worth. Not you or your realtor.

Good luck in your endeavor.
Web Reference: http://www.cyndibell.com
0 votes Thank Flag Link Wed Jul 20, 2011
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