Joshua Hanoud

Hi Dan,

While I wouldn't ever tell a bank what I was approved for, the fact that the bank knows you CAN pay that much, doesn't mean you're WILLING to pay that much.

Ultimately you need to look at the home, look at others on the market, figure out what this particular home is worth to YOU (regardless of what the county or bank says) and offer that. Once you do that, you will be able to walk away from the home with no hard feelings because you'll know that if someone else gets it, they paid more than you were willing to pay, so good for them.

A few months ago, I was looking at a foreclosure that was listed at $68,000. I offered the bank $55,000 and there was another offer on the property as well as mine. The listing agent said "give me your highest and best" and I replied with "I did...that's all I'm willing to pay...but I have cash and I can close tomorrow". The other buyer offered $63,000 but needed financing. The bank went with their offer...then their financing fell through (whoops), the property came back on the market at $60,000 (and the listing agent asked me if I would go up 5K to get the deal) and my offer went down to $50,000 cash, close as soon as they're ready. Point is...it took 4 months, but I got the house for $50,000 after walking away from the deal twice. I knew what I was willing to pay, and if someone else was wiling to pay more, then good for them.

If you're in love with the house, have your agent run comps and write your offer. If not, write whatever offer you want and walk away/keep looking while the bank ponders. - Sun Nov 16 2008, 19:20

Generally speaking, no - I've never seen that happen once a contract is already in place and earnest money deposited with the banks title company.

Now - whether they CAN or not, is a question for your Real Estate Attorney as they would have to look over and interpret your contract for you to tell you exactly what the bank can and cannot do according to the terms of the contract that you signed.

Hope that was helpful!

Thanks,

Josh - Wed Nov 5 2008, 18:53

Nicole, I'm not feeding anything...I'm stating the reality of the situation. A buyers agent only has a fiduciary responsibility with a CLIENT...not with a customer. And I fully defend an agents right to earn a living and put food on their table. If a seller wants me to work for free (or for a 30-50% pay cut) I say "no, but thank you for the opportunity". My time and services are worth more than that. Ask your electrician if he'll work for 30-50% less than his usual rate...see what his response is...ask Kelly if she would...Kelly, would you?

It's not a BAD thing to expect to be able to feed your family and earn a living. From what Kelly has posted, I don't see any violation of ethics or a "bad apple". Kelly hit it right on the head - she told the agent to find another home to show...she stuck to her guns.

You mention that I'm not a local realtor (in other words, I have nothing to gain or lose by being honest...Kelly, I'm not out to get your business through flattery...I'm giving you an honest opinion). I don't doubt for one second that Nicole, Larry, and Daniel all have wonderful intentions... but the truth of the matter is an broker can charge whatever they'd like to charge...just like you can offer whatever you'd like to offer...but if you offer me peanuts and my buyer is worth a snickers bar...don't expect me to trade with you...I'll find my buyer a home that they will be absolutely thrilled with, and I'll be able to feed my family...and you will still have a house for sale in a downward trending market.

I resent the implication that I'm a "bad apple", Nicole...I am a very tasty treat of an apple. But I am not a free apple...and that is not something to make excuses for. - Fri Oct 31 2008, 21:57

I'll be fairly blunt here...I don't like the apologetic reactions of the two agents who have already posted.

Dan and Larry are both assuming that the buyers were clients of the agent (as opposed to customers). There is a fiduciary responsibility involved when working with a client...NOT with a customer. Also - in a client relationship, the client (i.e. the buyer) has usually agreed to pay the agent their fee if the seller's offering of commission comes up short (in exchange for working 100% in the buyers best interests, the buyer takes on the responsibility of compensation for their agent). Larry - you have nothing to apologize for, my friend.

Kelly - you need to take your emotions and your aggression towards Realtors out of the equation and look at it as a dollars and cents transaction. Ultimately, if the agent has a buyer for your home, SELL YOUR HOME. They will only get paid if the buyer closes on a deal that you are ultimately happy with. If you don't like your net after expenses, don't take the deal and find another buyer. But I'd venture to guess that your best interests (selling your home) would be served by first telling the agent that IF their buyer chooses to purchase your home at a price that you're agreeable with, you would be happy to pay them a 3, 4, or 5% commission (If I had a buyer for your home and I was able to get you $50,000 over your asking price, would you have a problem paying me 5%?) This is obviously exaggerated and hypothetical, but you get the point? Ultimately your net is what matters, not the percentage you pay an agent for procuring a buyer.

Do what you have to do to sell your home...it's about dollars, not principles. As long as your ultimate NET is good for you, then I would not recommend letting a percentage point or two in commission stop you from selling....in this market, doing that will most likely end up costing you more money as it will take longer to sell your home and with the declining market you will most likely sell for less.

Or let the agent take their buyer elsewhere, lose your opportunity for a sale, and keep on truckin' knowing that you stuck to your guns but still don't have a buyer. - Fri Oct 31 2008, 21:18

Hi Debbie,

Would love to help, but I don't know which property you're asking about...

Get back to me with some information and I'll let you know where it stands...

Thanks,

Josh - Mon Oct 27 2008, 12:06

Your best bet (although you may not like this answer) is to contact a realtor who deals with them on a regular basis. Realtors tend to develop relationships with the asset managers who handle the properties. As a result, they know who to call, what to say, and when to do it. Call the realtor who had the listing before and ask them if there's anyway for them to get in touch with the AM because you're now ready to make an offer.

Hope this was helpful,

Josh - Mon Oct 20 2008, 05:25