I have entered into a dual agency so my realtor knows everything about my finances. I made a full price offer

Asked by Donna Prater, Powell, OH Tue Jun 10, 2008

on one of her houses (FHA financing with 3% contributed to the downpayment) and she countered bu upping the price of the house by $2600. Is that legal?

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6
Tom Winand, Agent, Salt Lake City, UT
Tue Jun 10, 2008
Yes it is legal. You are actually offering less than the sales price net after he pays your down payment through a gifting down payment program. So in reality you’re offering 97% of the sales price and there is probably a $500 administration fee on top of the 3% he is paying. So it’s 3% + $500 less than a full price offer. Now with lots of seller they get upset that people what the seller to pay your down payment. They say no one paid my down payment or closing costs why should I pay theirs. Even if it’s usual and customary today in the market; it doesn’t make then any less upset about it. Sellers generally have an emotional attachment to their home and a large unfulfilled expatiation of what their home is worth right now, compared to what buyers are willing to pay. The Realtor is the messenger and please don’t shoot the massager. I would dough highly the realtor told the seller anything about your finances. The seller probably feels he has the home listed for too little and is unwilling to accept 3% less than the listed price. Is the home priced well for the market? If so then it probably worth full price net sales price and your down payment is your down payment, there is nothing wrong with adding it on top if it will appraise for that. That just goes to show you’re getting a good price for the home.
1 vote
Mary Starkey, , Dayton, OH
Tue Jun 10, 2008
And, yes, it is legal to raise the price of the house so the seller can help with the down payment. In my opinion, the seller should be glad to get a qualified buyer who is offering a full price offer less 3%. One also has to be careful if the house can appraise for a loan at the higher offer. Appraisers and loan companies are presently being very careful.
1 vote
John Youker,…, , Beavercreek, OH
Tue Jun 10, 2008
It is legal to sell the home at a higher price. Think about what the seller wants - the list price. Think about what you asked for - 3% to be given back to you. It is only fair that if you do not have the money to put cash down, and expect the seller to cover it, then you should pay enough above the asking price to cover the difference.
0 votes
Mary Starkey, , Dayton, OH
Tue Jun 10, 2008
I have always had trouble with dual agency. While an agent is legally bound to be impartial to both parties during negotiations, the results are that neither parties get represented. And I am not sure an agent can actually be impartial during negotiations. I personally will not participate as a dual agent because I do not think it is in the best interest of my client. Many agents will tell you otherwise but remember they are also the ones getting the comission for both sides of the deal. Next time I would advise you to get your own agent, one who will represent and advise you alone.
Web Reference:  http://www.marystarkey.com
0 votes
Matt Dwyer, Agent, Cincinnati, OH
Tue Jun 10, 2008
I am sure you mean the seller countered back at a higher amount. The agent is the messenger. If your offer was at list price less the 3% seller contribution you were no longer at list price. You have to subtract what you are asking the seller to contribute from the offer. Many FHA loans end up with a purchase price over asking price if it started at close to market value. Have you agent explain the numbers to you clearly.
0 votes
Linda Waltman, Agent, Katy, TX
Tue Jun 10, 2008
Yes. She is obligated to hold your information confidential and not share what she knows of your finances with the seller. THis counter should be directly from the seller, without influence from the realtor. If you are concerned, ask to speak with the team leader for her realty office. The broker of the firm may assign you another realtor to consult with during these negotiations.
Web Reference:  http://www.LindaWaltman.com
0 votes
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