Krissy, Home Buyer in Saint Louis Park, MN

New listing at 2857 Dakota Ave South in Saint Louis Park (thoughts/HELP)?

Asked by Krissy, Saint Louis Park, MN Wed Aug 27, 2008

There is a brand new listing at 2857 Dakota Ave South in Saint Louis Park. It just went on today, and it is larger than most in it's price range. It is a 4 bedroom, 2 bath at $234,900. It is very updated and nice, but it is a brand new listing (should I wait until it has more days on the market?). Any advice on the area, size, and/or price on this home. I do not have an agent, and I do not want to work with the listing agent on this house.....but I do not know the next step.

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15
One thing you should not do is wait in the current market. Even if the home is overpriced, getting in early can have its benefits!
0 votes Thank Flag Link Mon Jul 29, 2013
Krissy, I am glad to hear that you do not want to work with the listing agent. many buyers do not realize that the lister is working in the interest of the seller, so will not be able to represent you fairly. Evaluating what to do and answering your many questions is the reason why it is good to select an agent you trust and allow them to work for and represent your interests. The agent for a buyer is paid by the sellers so there is really no reason to "go it alone". I would be glad to help you if you like. I can be contacted through our website below.
Web Reference: http://Www.ohnstadhomes.com
0 votes Thank Flag Link Tue May 31, 2011
BOTH the listing agent AND the buyer's agent effectively work for the seller. Both agents want nothing more than to sell property. It is very important that all buyers know this. The seller pays his agent a commission and seller's agent then pays YOUR agent as a subcontractor.
Flag Wed Oct 17, 2012
Krissy,
It is all about location in any suburb in the Metro Area. Size of bedrooms are always important, as well as peculiarities such as how close is the 2nd bath to the bedrooms ( ie. a bath in the basement is not as valuable as a bath connected to the master bedroom) etc. I would not wait however, do your homework, drive by the home, does it meet all the rest of the location requirements you are looking for ? Then, seek the help of an agent who works in St Louis Park ( in that area of the Park ).. and you will find an agent that has personally seen many of the listings over some time, which will save you precious time. In real estate agents, knowledge is power, experience pays off. Check out our website, and see what you get in St Louis Park for more and less, and then give us a call ! We can help. Susan McArdle, Coldwell Banker Burnet
Web Reference: http://CityLakesHomes.com
0 votes Thank Flag Link Thu Oct 29, 2009
Sammy, I"m going to allow for the fact that you are not a professional in the industry. There are so many facets to what a professional REALTOR does and I'm sure there's no way you could be aware of that. One of the things we do is provide information to help the buyer assess their level of risk and allow them to decide their risk tolerance when developing a strategy with which to negotiate the transaction.

What you have also neglected to tell Krissy (because you may not know) is that the commission is going to be paid to the listing agent whether or not the buyer has an agent. They may have negotiated for a lower amount if the listing agent brings a buyer to the transaction, but that's not a given. Even then, there's no guarantee that the "cut" is going to be as much as what would have been paid out to a coop broker. As long as buyers are still paying for houses, they are paying EVERYONE who is a party to that transaction, so for the same commission payment, why not have someone contractually bound to protect the buyer's best interests?

And, how do you account for the fact that buyer agents have negotiated prices far lower than what would be equal to their commissions when negotiating price for their buyer clients? How does that happen? I have certainly done that, even in a sellers market.

That's where my point about helping the buyers decide their strategy comes in to play. If a buyer wants to play hardball and come in with a low offer, that's THEIR decision, based on all of the information about the market and their risk tolerance, and I'm there to execute it for them.

Finally, with regard to buyer agent's expenses vs. listing agent's expenses, one only needs to look at the price of gas to know, at least in part, what expenses come in to play in being a buyer agent. Especially in this market when buyers are looking at 30, 50, 80 100 houses before making a decision. Does that make for a bad agent that we will show that many properties? Not in my opinion, that's part of what buyers are hiring us to do.

I applaud your knowledge and your courage of going in to a transaction knowing that you are the only one representing your best interests vs. an industry professional. As I read in an article the other day about representation, it's not a problem until it is.
0 votes Thank Flag Link Fri Sep 12, 2008
"Sammy,
I find it curious that you perceive the idea that transactions conclude quicker in a dual agency deal to be a good thing for buyers and sellers."

Susan: Clearly you did not read the paper. My argument was that "conflict of interest" is a non-issue when all things are considered. I was merely pointing out the fact that the study found that the only measurable effect of dual agency on real estate transactions is that they come together faster than inter-agency deals. Read the paper and then tell me why Krissy should avoid working directly with the seller's agent.

Now, if Krissy doesn't consider herself a confident negotiator and does not know how to use the research tools available to her, then maybe she should consider hiring an agent, but my interpretation of her question was that she was asking for an opinion on whether to make an offer now or wait and see what happens if she waits to see if there is any other interest in the house.

Krissy, what the agents here won't tell you is that if you go out and hire an agent to represent you in your transaction, you are automatically costing yourself or the seller 2.7% of the cost of the home. 2.7% of the price of the home you are looking at is nearly $6500. If you like the house and your are confident that the price is reasonable, then why would you want to pay $6500 dollars more for the house? And I put it in those terms because your seller knows about the commission issue, so if you come without representation, the seller may be willing to accept a lower offer knowing that he/she won't have to pay that 6K to your agent. The fee that your agent earns is supposed to be for the work they did to help you find a house AND negotiate the deal. If you found the house on your own, then what exactly did this agent do to earn 6K? If you are willing to pay someone 6K to negotiate an offer, then send me a private message; I'll gladly do it for you. Easy money! No wonder you have some gomer from Alabama offering to help you...easy money!!

Even if the process took a whole week of 8-hour workdays (which it will not) you would be paying your agent $150/hour. Nice work if you can get it -- I think I should become an exclusive buyer's agent. Sounds like a cake walk job to me. Let the seller's agents lay out all the cash for marketing and just bring a buyer -- what a scam. Better yet, watch the trulia and zillow message boards for people like Krissy, who have already found the house they want, then you swoop in with your "resources and years of experience" and earn a quick buck for closing the deal. Hah!

Good luck Krissy! You will need it while trying to navigate the REALTOR® infested waters of the home buying market.
0 votes Thank Flag Link Fri Sep 12, 2008
Hi Krissy,
Craig LaMar here from Huntsville, AL. Some comments about your inquiry on
"2857 Dakota Ave South in Saint Louis Park; 4 bedroom, 2 bath at $234,900;
It is very updated and nice, but it is a brand new listing (should I wait until it has more days on the market?)"
1. In my market area, if you wait on a property that is competitively priced, very updated and nice, and in a desirable location then you will be in competition with other buyers if you wait for more days on market. The best homes sell first; the rest are somebody else's leftovers. So the only reason to wait is if you need to obtain a preapproval letter, or if you have to sell another property before you could purchase this one.
2. Every real estate market is local; and there can be disparity between micro-markets within your regional area market which could impact the offer you make, the terms of that offer and when you make that offer. (A micro-market could be homes in a certain school zone, or in a certain community, or in a certain location near downtown, or near a research park, or in a certain price range). For example, in my market area there are certain micro-markets that have inventory issues: if no more homes came on the market in some of those micro-markets, then there are enough homes available to last for 6 - 8 months. That situation creates what I call a "buyers" market and will affect what I counsel my client to offer. Then there are other micro-markets that have very few homes on the market. There are inventory levels of less than 90 days which creates competition among qualified buyers for the few nice and updated homes available. Again, that affects what I counsel my buyer client to offer for the property and how quickly to make that offer.

"I do not want to work with the listing agent on this house.....but I do not know the next step."
1. You need qualified representation from an experienced local broker/REALTOR who knows the market and can provide you counsel on the the next steps. If you do not have a local counselor, there are a couple of options for you a) talk with family/friends to refer someone that can help you, b) contact me craig@craiglamar.com and I can refer you to brokers I know in your market area that could provide a counseling session.
2. Whomever you decide to hire to represent you, be certain that a) they are a REALTOR, b) that they have at least 5 years experience (you will need experienced representation to obtain the best counsel); b) that they have obtained the CRS designation (Certified Residential Specialist) which evidences they are committed to maintain certain professional standards; c) that they have obtained the ePro certification which certifies they are internet proficient; d) that you feel comfortable with them and confident in their counsel.
If I can assist in anyway, you can reach me at craig@craiglamar.com
With the lower rates we have today (and no one knows how long that will be), this is an excellent window of opportunity if you are going to be buying a home. See my Trulia blog: "Interest Rates Are Falling".
Much Success and Stay In Touch,
craig@craiglamar.com
Coldwell Banker Premier
Huntsville, AL
Direct Mobile: 256-509-6571
Visit me at FaceBook
0 votes Thank Flag Link Thu Sep 11, 2008
Sammy,
I find it curious that you perceive the idea that transactions conclude quicker in a dual agency deal to be a good thing for buyers and sellers. From my perspective, it could indicate that exclusive agents are standing their ground for their clients best interests which can take longer to negotiate, rather than advising buyers and sellers that certain concessions are not possible. Not necessarily sure taking less time is always a good thing.
0 votes Thank Flag Link Thu Sep 11, 2008
Is this house lender owned or something? The house just down the street with the same attributes just sold for over 270K. Must be a very motivated seller...I wouldn't sit on it very long in light of the latest interest rate drop.

The county's estimated market value on that property is $234,700. Most houses in that neighborhood are still selling for well over their estimated values. Assuming you have already been approved for financing, you should head to the nearest office supply store and buy the pre-fab purchase offer papers. Write up an offer contigent on inspection. You will have to find out what kind of earnest money will be required with your offer, but you don't need an agent. I have bought two homes using the method I just described.

Having said that, I am curious to know why you don't want to work with the listing agent. I just read a study about dual agency (conducted by students at Cornell University) that tested the conflict of interest issue, and found that dual agency does not really affect average sales prices of homes. In fact, the study found that dual agency deals conclude about 7% faster than cross-agency deals.

I will try to find a link to that paper, it's a good read if you are into that kind of thing.

PS -- I am not an agent and should probably be trying to send you over to my neighborhood to check out my home for sale in SLP instead of suggesting you snap this one up. Best of luck to you!

Sammy
0 votes Thank Flag Link Wed Sep 10, 2008
Krissy-

1) Find yourself an experienced agent...ask friends and family for referrals. Interview a couple to see who fits your personality.

2) Get your financing in order. Speak with a loan officer about what you can afford, etc, and make sure to get a pre-approval letter that you can submit with an offer, showing you are ready to buy. Do not put in an offer until you do this!

3) Have the selected agent analyize the market and see where this home falls in the mix. Based on that information, make an offer.

From there, things will either fall into place or they won't. Let us know how you do! Good Luck!
0 votes Thank Flag Link Thu Aug 28, 2008
wow - do what he says or else......

Look, you'll get a ton of agents now seeing your question and hounding you for the business. Go with an agent you're comfortable with, that's really the bottom line. Good luck and we hope you find what you're looking for.
Web Reference: http://www.myhome.tc
0 votes Thank Flag Link Wed Aug 27, 2008
Krissy,

The next step is to contact me so I can arrange an experienced agent in the area other than the listing agent to show it to you. Then you can determine if or not the third step of determining value and if you want to write an offer or not. A good local REALTOR will help you with that. Contact me ASAP to make arrangements for you.

I’m a 25 year experienced agent.
0 votes Thank Flag Link Wed Aug 27, 2008
Krissy,
I can find you information about that area of St. Louis Park, but our MLS prohibits us from posting that information publicly. Let me know if I can send it to you in an e mail.

It's important for you to have someone representing your best interests. It's an educated consumer who knows the importance of representation. I am an EXCLUSIVE buyer's agent who only ever represents the best interests of home buyers in the Twin Cities. Why is that important? Because if you decide to work with an agent and you decide you don't want to buy this house, when that agent starts showing you property, there's a chance they may become a "dual agent", which means that the sellers have signed a listing agreement with the company that agent works for, therefore meaning that agent has agreed to represent BOTH buyer and seller. This is unavoidable with any traditional real estate companies.

I ONLY represent home buyers because our whole company only represents home buyers. And, that's in any house, any where.

If you'd like to know more, visit my website or e mail me. I have a guidebook I'd like to send you.
0 votes Thank Flag Link Wed Aug 27, 2008
Of course the photos are now added - just 1 minute after our last post. By the way, you can call us at 651-356-8877 or email homes@thegoheens.com
Web Reference: http://www.myhome.tc
0 votes Thank Flag Link Wed Aug 27, 2008
Hi Krissy,
The listing is so new there aren't even photo on the MLS yet. When looking at buying a home, one of the things you may not know is the seller's motivation. They might be late on payments, moving across the country, getting married, etc. This seller might be more realistic and in tune with today's market.

If you're interested, we can do a market analysis on the home for you and let you know what others are selling for in that immediate area. We'd be happy to help you out.
Web Reference: http://www.myhome.tc
0 votes Thank Flag Link Wed Aug 27, 2008
Get an agent to represent you as your buyer's agent. They can then perform a market analysis of the area and evaluate the property with you. If it is a good price for the location & condition of the house, you will want to make an offer sooner rather than later. Remember that Houses in good location, condition and price often sell quickly.
If the house is not priced right, you will probably have time to consider what you want to do.
0 votes Thank Flag Link Wed Aug 27, 2008
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