Our agent wants this deal to go through in which we'd lose 20,000. Why does he want this deal to work so badly?

Asked by Ooladr, 03801 Tue Aug 16, 2011

We dropped the price to rock bottom at 229,000 the offer is 225,000 with 5,000 towards closing closing costs and the realtor gets 5% commission. We JUST dropped the price on the house 2 weeks ago and we're moving into September when the market (should) pick up. We already bought another house and will be moving in September. Should we take the 20,000 loss or wait and see if we can maybe loose 13,000 instead or get closer to the 229,000 (we owe 227,000) on it. Why is our realtor pushing so hard for this particular sale? Do you think he has a hidden agenda or is there something unsellable about our house he's not telling us?

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11
tlurk, Home Seller, Indiana
Sun Sep 4, 2011
did u even counter the offer??? we had a total of 3 low ball offers on our home. the first 2 were just "throwing mud to see if it would stick" - we countered $1000 under list and never heard a thing back. 3rd offer was also low but these people wanted the house and were "testing the water" (we still were not happy about another low ball offer) -we countered a couple thousand off list and they came up to our price. we do not have a large mortgage (not that that should matter) but houses in our area have already lost 14% in the last 4 years and are selling now for 7% under list. we manage to get 3.75% under list and feel that we have a contract that is fair market value considering the housing market. at this point it is entirely up to u, counter their offer, accept it or wait. we never budged off our list price as we were a bit low for our area (like $2000 under), house is in wonderful condition and is not a foreclosure or short sale. price was never a issue in the 25+ showings we had.
all agents want to make money, we all do. i dont know if he has a hidden agenda, u should ask him to compile solds and contracts in ur area for the last 6 months and then decide if the price is right. you need to do ur homework, no one is looking out for u, no one... u have to do ur part to be able to sleep at nite.
good luck
0 votes
Terry Grant, Home Buyer, Alamogordo, NM
Sun Sep 4, 2011
Sounds as though you are in a financial situation where the sale of your old home is not an issue with the new home. How much are similar condos renting for? Will that cover your mortgage? You have no equity and selling would make you come out of pocket $15-$20K? Renting at $1500 a month would almost cover the payment on the old house and give you a while to let the market rebound. Even unrented the $15 to 20K could give you an extra 9-12 months to see if the market rebounds.
0 votes
FarOutWest, Home Seller, Springfield, MA
Wed Aug 17, 2011
Ooladr:

Congratulations on your new home!
In describing your new home you answer your own question regarding the sale of your curent home. You state that "its a gorgeous 500,000 property but we got it at 364,000." No, it's a $364,000 property because that is the price that you, a willing buyer, paid for the property. And regardless how much you owe on your current property its value is only what the buyer is willing to pay.
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Alan May, Agent, Evanston, IL
Wed Aug 17, 2011
There's no way to tell if your agent has an ulterior motive, or not.

More likely, he knows that the $225,000 offer, even with the $5,000 in closing costs, is a good deal. Maybe he knows that your "rock bottom" isn't a truly saleable price. Maybe he suspects that you might have difficulty appraising for anything higher than $225,000??

Or maybe he'd just like to get a commission check. Who knows?

But I think your attitude readjustment, after reviewing the situation, is a good view of the world. There are, indeed, many sellers who'd gratefully trade places with you. You have an offer, and you're ONLY losing around $15,000 - $20,000. There are many, to whom that would look great!

Good luck.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Aug 17, 2011
It depends what your home is worth in todays market, is the offer at that price or just below, if so it is fair, if it is way below market value, then it may not be fair, however if it is the only offer, it is your choice especially if you need to sell your home to move to the next home. Becuase you have a listing agent other agents are very limite din what advice they give you, you should discuss the offer with your agent and let them show you what market value is so you have soemthing to compare the offer to. In the long run you may not be loising, you are not making as much but then you are more than making it up by teh great price on the house you are buying. Good luck with your sale
Web Reference:  http://www.ScottSellsNH.com
0 votes
Ooladr, Home Buyer, 03801
Tue Aug 16, 2011
Thank you for your input. I think we're overestimating the loss and not looking at the new larger, gorgeous dream house we're currently buying. we bought it as a foreclosure and its a gorgeous 500,000 property but we got it at 364,000 so I guess the loss is just part of moving up to a nicer/bigger house with more land.

The loss of the 20,000 is a cash loss which sets is back a little as far as what we can do once we to our new house. Since we haven't moved yet I think the loss seems more real than living in that gorgeous house.

Change of attitude/outlook
is in order.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Aug 16, 2011
Keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend; market conditions do matter as does the immediacy for a transaction to take place. In setting a price, it is in the seller’s best interest to focus on the current market conditions--have you reviewed comps, recently sold similar properties in the immediate area, if so what is the data suggesting; how may other offers have you received, how much more of a loss are you willing to risk, are you willing to chase the market.....
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Aug 16, 2011
Home Buyer/ Seller,
You are truly in a difficult situation. The temptation to look for 'devils' behind the curtain will bring no value to your decision making.

If you have been receiving lots of offers to purchase your home, then waiting may be in your best interest. If, however, this is the one and only offer you've received or found acceptable, it is best to try to make this work.
Be clear what your strategy is as the purchase process continues and other 'negotiation' opportunities present themselves. The negotiation skills of your real estate professional will be critical in preparing for the next event(s).

I have yet to meet a real estate professional who does not take personally the well being of the home owner.
Although we have thick skin, the business requires it, we do hurt when our sellers are disappointed.

Why is your agent pushing so hard? If your agent is like me, He/She is aware of the competing homes of interest to this buyer. The buyers second choice is also a great home and we truly don't want that homeowner to make a proactive offer.

Place some faith in your real estate professional and work together for the best outcome possible.

Wishing you the best of success in your relocation.
Annette Lawrence
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
Web Reference:  http://www.MyDunedin.com
0 votes
FarOutWest, Home Seller, Springfield, MA
Tue Aug 16, 2011
Yes, you could reject the current offer and wait until a better offer arrives. And wait. And wait. And wait. The next offer arrives may cost you $40,000 instead of $20,000, or may never arrive in which case you will be in a world of hurt.
Also, if you have not yet hired an attorney to represent you at closing, please do so for your rights to be protected.
0 votes
Bill Eckler, Agent, Venice, FL
Tue Aug 16, 2011
Ooladr,

It's often difficult to get an accurate feel for what the future will bring but in today's real estate market it's generally advisable that if you have an interested party, that you work with them and hopefully arrive at an acceptable agreement.

There are no assurances....Waiting for a better opportunity involves considerable risk and could result in you incurring greater loss.

Accepting a loss of any amount is not an easy proposition but may be your best option. Your agent should be able to help you process the pro's and con's based on your local real estate market and personal needs.

Best wishes,

Bill
0 votes
Pat Rose, Agent, NH,
Tue Aug 16, 2011
Good morning, I certainly cannot answer whether there is something unsellable about your house, but I can tell you that the broker is looking at the comps and advising you based on current sales which are occuring daily. If your house was overpriced to being with, you are simply chasing the market downwards. The market doesn't typically pick up in September as homeowners with kids like to be settled before the start of school. Your broker is giving you the best advice for the market today and the fact that we are going into fall and winter. Buyers do not care what you paid for your house and it doesn't factor at all in the market. Add up your carrying costs for the next few months and factor that into your final decision. Good luck.
0 votes
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