Home Buying in 34746>Question Details

Sumer Celaya, Real Estate Pro in 29576

Is it legal for the listing agent to list it without having to prove it is worth what they are asking??

Asked by Sumer Celaya, 29576 Thu Jun 6, 2013

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19
You do not have to prove a home's worth to list a home as a Realtor. However, most Realtors will sit down with the seller and give them what's called a CMA or Competitive Market Analysis. We'll also look at any additional features the comparable have, from this analysis the seller will make a decision a listing price. Not all sellers will list based on this analysis. The bottom line, regardless of the information shared by a listing agent, the seller will list the home at whatever price they like.

As a buyer, your Realtor will provide you with a CMA and you can decide how to proceed from there. If you love the home and the seller won't agree to you're offer, then you have to decide how badly you want the home and, is it worth paying more than market value for?

Cathy Starkweather
Realtor & Investment Home Specialist
La Rosa Realty
01.407.274.8476 / cathy@jerrybarker.com
1 vote Thank Flag Link Thu Jun 13, 2013
Completely. "Worth" is only defined by how much the buyers think it is appropriate to pay for the home. Currently many homes sell above the asking price because the buyers think the home is "worth it". The bank will do their own appraisal and determine if they agree with the buyers offer or not.
1 vote Thank Flag Link Fri Jun 7, 2013
If this were the case, there would be a lot of Sellers and Agents in jail!
The only time the true "worth" of a property is determined, is when a ready, willing and able buyer steps forward and put up his money.
Until that time, everything else is just OPINION.
1 vote Thank Flag Link Thu Jun 6, 2013
Legal?

I'm not aware of any laws that would be broken by over pricing a home...a home is worth whatever a buyer is willing to spend to obtain it. So what may seem over priced to you may be a steal to someone else.

Keeping it real!

Bill
0 votes Thank Flag Link Fri Jan 10, 2014
It is Legal. An agent will do a home analysis to give the seller a realistic price. Sometimes the seller wants more, if we list it way over the price the property will just sit. If someone wants or needs to sell
he Right PRICE is Key. If someone come to purchase an overpriced home thru a loan the lender(bank) will only approve the loan for the amount the home qualifies for(appraisal).
So if you want to make sure your home is priced to sell or if you are on the other end and want to purchase Let's say CASH (does not need appraisal) You might want to get it appraised
0 votes Thank Flag Link Fri Jan 10, 2014
Hello Sumercelaya,

The listing agent can only list a property with the permission of the seller / owner giving approval. To try to answer your question, an agent should show the seller / owner of the property what the home and the community is worth at the time of the listing. Most of the time the sellers want to list the property higher they the market price of the community. You can also list the property at market value and probably sell it faster if that is what the seller needs to do. The owner / seller should have full say at what the property is listed for. It's the listing agents job to give the seller all the information they need to make the right discussion to best fit the seller needs. If you have any questions, please let me know by using my email address.

Thank you
Bernard Scarpa
American Ideal Homes, LLC
Office Hours are 7 days a week 9:00 Am to 9:00 PM EST
Cell # 407-572-3022
Fax # 407-957-5843
btscarpa@aol.com
0 votes Thank Flag Link Sun Jul 21, 2013
This question was posted in Jun 2013, so I'm late to the party.
Certainly it is distressing when a home displays a price that is above a buyers expectation. I just bought a Honda Pilot. The suggested retail price was above my expectation. I fixed that.
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Sumer, where I see the greatest transgression taking place is the venues that lead buyers into improper expectations. Websites like ZILLOW publish values that have not relationship to reality. Yet, buyer, after buyer after buyer have those numbers in their hand.
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Should not you, as a buyer, also be in an uproar regarding such blatant false data being presented as a property value? Could Zillow be the real source of your dissappointment because you have been led to belive what is not true?
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The proof you seek regarding a home's true value is the culmination of negotiation between a willing seller and able and willing buyer. The price published is the Suggested Retail Price. What you really pay depends on your quualifications, pre-conditions and skilled representation. To "PROVE' as you suggest, is a violation of the very first rule of negotiation..."Don't negotiate against yourself!"
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If you are looking to purchase a home, you should start with getting qualifed representation. These professionals are there to advocate what is best for you and your interests. Overwhelmingly, this service costs you NOTHING! They also know the market and can advise regarding the market value of a home. The PROOF your agent creates WILL NOT be the same proof the listing agent would provide. Whose proof do you think will be most beneficial to you?
0 votes Thank Flag Link Sun Jul 21, 2013
There is no law about aver pricing a home. If so half the agent s and sellers would be sent "up the river" Some owners think their house is worth more, some agents will take a listing at any price and osme will hope they go down eventually. Others just do not know how to value homes. On the other side is some very good listing agents who work hard to place the correct and current market value on a home and market it to bring about a quick sale.
0 votes Thank Flag Link Sun Jul 21, 2013
It will be worth what they are asking when it sells...
0 votes Thank Flag Link Sun Jul 21, 2013
Any agent can list where they want to. The problem is that if they list a property too high then the property maybe listed but your not "in the market". Many will price too low to encourage multiple offers hoping it will go above market value. I'm not a fan of either practice.
An agent can supply a property owner with a CMA, that is a rough estimate. These CMA's can be manipulated to come out at a price the agent wants. You will find that many Newer agents will use CMA's. Any property owner can find values from comparable sales that will be a good guideline at the County website. And those prices can not be manipulated.
A good agent should give you a range from Low to High and be able to give you the affect of pricing in that range. Example; price to low for a quick sale and move out. Price high if you want to stay longer, Price too high and it could take over a year for the value to catch up to your listed price.
In todays market if you are here with us in Kissimmee. If the property is priced correctly you should have multiple offers within a week.
Seek a true professional REALTOR. One that's in the business full time for a few years.
Good Luck Hope That Helps.
Thank You
Paul Antonelli

Buying, Selling, New Construction or Avoiding Foreclosure
We can help you like we've helped hundreds of our other Happy Clients.
14129 Town Loop Blvd., Suite 200, Orlando, FL 32837
Cell: 321-443-4028 Fax: 866-674-9761
http://www.PaulAntonelli.com Facebook
0 votes Thank Flag Link Sun Jul 21, 2013
Yes - and, it's should be relatively easy to find value range by having your agent to a comparable market analysis for you. Remembering, this home may have more or less of the amenities you want vs. the comparables, better or worse location, condition, etc.

If you've looked at a number of homes, and this is 'right' for you and within the range you believe it's worth. Just make your offer and see where it goes.

If you like this answer or if it was useful to you, a quick click on the green 'thumbs up' would be appreciated.

Kim Eisen
"Helping People Make Smart Real Estate Decisions since 1980"
(651) 457-HOME (4663)

http://www.QuickHomesSearch.com
0 votes Thank Flag Link Wed Jun 26, 2013
The home is worth what the market conditions dictate and what somebody is willing to pay. An appraisal may suggest a different story altogether but ultimately, you could list something for a dollar or a million dollars if that is what a seller desires to do. How quickly or slowly it sells will merely depend on supply and demand.
0 votes Thank Flag Link Wed Jun 26, 2013
Yes, same as it is legal for a buyer to offer less.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Jun 13, 2013
Value is established by the buyer.....a property is only worth what someone is willing to pay for it. For those that are enjoying an inflated asking price the cold hard truth may be that there is a long wait in their future.......

For a financed transaction, the accuracy of the asking price is verified by the lender's appraisal.

Bill
0 votes Thank Flag Link Thu Jun 13, 2013
It's "legal" for a seller to list their home with any listing agent at any price they care to...whether they are following the agent's advice or not, is another story!

"Worth" is something that is determined once it's on the market.
0 votes Thank Flag Link Sun Jun 9, 2013
OK, so - what's your story? I'm guessing you bought a house and the appraiser came in under value . . .
0 votes Thank Flag Link Sun Jun 9, 2013
There is no way to “prove” what a house is worth. Even after a sale closes there are those who will tell you that the house was not worth that price.

If you really don’t think the house is worth the list price. Don’t pay it! You may be right and maybe no one will pay that price and it will have to be reduced in order to make the house sell. Then again, maybe someone else will pay the price…proving that they are willing to do so.
0 votes Thank Flag Link Sun Jun 9, 2013
Yes, of course. Low ball listing is very common when it comes to short sales.
0 votes Thank Flag Link Thu Jun 6, 2013
If this were the case, there would be a lot of Sellers and Agents in jail!
The only time the true "worth" of a property is determined, is when a ready, willing and able buyer steps forward and put up his money.
Until that time, everything else is just OPINION.
0 votes Thank Flag Link Thu Jun 6, 2013
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