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Michael, Home Buyer in Hayward, CA

I felt my broker kept pushing me make a higher offer. Should i deal directly with the listing agent?

Asked by Michael, Hayward, CA Fri Apr 3, 2009

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Michael
There are many variables in determining the value of a property and the right offer price. Have you and your Realtor discussed strategy?

Many buyers think that because we are in a buyer's market that they can simply make low ball offers and eventually they will find someone who is desperate to sell and they will get a steal. While that might work out in the long run. you might lose out on some great homes in the process.

When you look at the market analysis for a home, usually it contains a ratio called List Price Versus Sale Price. In my market that is currently about 95%. That means that on average, homes are selling for about 5% less than asking price.

The other major factor is VALUE. A property that is correctly marketed and priced will sell very close to list price if it sells in the first thirty days on the market. In my market the ratio is 99.7% of asking price. About 20% of homes sell within a month. That means that 80% of homes are not marketed correctly and are overpriced. At 120 Days On Market the ratio falls to 92.3% of asking price. The longer a home sits on the market, the greater the gap between asking and selling price.

So when you are looking at a property, your Realtor's job is to analyze the variables and make recommendations. For example, a property that is new on the market might require you to bid OVER asking price. It is also possible for your Realtor to recommend waiting a week or two before making an offer if the property is severely over-priced.

It is important that you and your Realtor establish a plan at the outset to avoid frustration and unmet expectations are both sides.
0 votes Thank Flag Link Sat Apr 4, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
As Buyer's Agents, we have a fiduciary responsibility to our clients. Assuming, as Nancy suggested, that you received comps from your agent. How do they compare to the price your agent suggested? Last summer when representing my daughter, I had to tell her that she would need to offer list price for a property that had just come on the market. Why? Because we knew the comps, had studied the market, had seen most everything available, and I didn't want her to lose the property. There were others waiting to see it. If you received the comps, have seen everything, and this is the house for you -- and your agent knows it as well -- does your agent's price make sense? The listing agent has no fiduciary responsiblity to you; why do you feel this would be in your best interest?
0 votes Thank Flag Link Fri Apr 3, 2009
Nancy is correct with her statement request for comp's therefore you have full understanding.

However if buyers agent found property for you they assisted in sale would receive commission.

Rule of thumb never deal direct with opposing party.

Lynn911
~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Apr 3, 2009
Did your broker provide you with comparable sales of the subject property so you could make an educated decision on what to offer the seller? If not I would ask him/her for this first. Your agent should be working in your best interest and provide you with all the information you need to make a sound desicion in the home buying process. Good luck!
Web Reference: http://www.nancyfarber.com
0 votes Thank Flag Link Fri Apr 3, 2009
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