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Answers (16)
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
Thank you for updating us. And you are so right, now you can move on with no regrets, and find the house that WILL work for you. Good luck!
- user159628
- Contributions:6
Just an update :) We put our offer in, with $4000 earnest money (planned to do 5, agent said 4000 was good enough). Sellers denied because offer was too low. And now we can move on - painless, and informtive...and now, unless we find a home we like better, or the sellers find a better offer...we can always get together again and discuss options in the future. But for now, we can move on!
- sunnyview
- Contributions:25127
Go ahead and make the offer, but I would be careful with your earnest money especially since the agent is connected to the seller exclusively. I would not put up more than about 7K in the way of a deposit.
You can offer earnest money and a bank statement (with key information blacked out) showing the funds to purchase the home. Ask that the earnest money check be submitted directly to the escrow company once the contract is accepted and not held in the real estate company account. Good luck with your offer!
You can offer earnest money and a bank statement (with key information blacked out) showing the funds to purchase the home. Ask that the earnest money check be submitted directly to the escrow company once the contract is accepted and not held in the real estate company account. Good luck with your offer!
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
Wow....ummm...okay.
Again, I don't think an offer of 15% in this market is "stealing" a house. Especially when it has set on the market with no offers for 6 months. Sellers often drop the asking price that much or more in six months on the market. And even if it would cost more to duplicate it, that would be BRAND NEW CONSTRUCTION, big difference. I personally am far more concerned that they are not protecting themselves (and possibly overpaying) than trying to "steal" from anyone. Point of fact, she never said the house was worth less than 285K; she simply said that was all she could pay, again big difference. At least they can actually afford the house, so they won't need an agent to advise them to short sale in a year or two.
And Zillow is not just for agent input. Although the good ones are appreciated, it is an open forum which also allows consumers to discuss the situations they are going through.
User159628I, don't feel that anything you are doing or planning to do is offensive to anyone, could possibly harm anyone financially, or is even shady in the slightest. In fact, the only ones who stand to lose in this situation are you and your family. Just remember buyer beware, and good luck...come back and let us know how it goes.
Again, I don't think an offer of 15% in this market is "stealing" a house. Especially when it has set on the market with no offers for 6 months. Sellers often drop the asking price that much or more in six months on the market. And even if it would cost more to duplicate it, that would be BRAND NEW CONSTRUCTION, big difference. I personally am far more concerned that they are not protecting themselves (and possibly overpaying) than trying to "steal" from anyone. Point of fact, she never said the house was worth less than 285K; she simply said that was all she could pay, again big difference. At least they can actually afford the house, so they won't need an agent to advise them to short sale in a year or two.
And Zillow is not just for agent input. Although the good ones are appreciated, it is an open forum which also allows consumers to discuss the situations they are going through.
User159628I, don't feel that anything you are doing or planning to do is offensive to anyone, could possibly harm anyone financially, or is even shady in the slightest. In fact, the only ones who stand to lose in this situation are you and your family. Just remember buyer beware, and good luck...come back and let us know how it goes.
- user159628
- Contributions:6
We did not previously offer on the house due to bad timing. This fall when we really wanted to move (new baby on the way, we're cramped in our current home)...coincided with husband starting a new home based business, and of course the pregnancy progressed, I was more pregnant, he was well involved in the new usiness venture, and putting in a low ball offer on a home we didn't think we would get was no longer priority. That said, life has not gotten any better for timing :p (due with said baby any day now, and still in new business mode). However, the cash for this house has always been there. We have recently found someone interested in renting or purchasing our current home (although not a financial factor in our purchase of the next house)...prompting us to give this another thought. And since we have never actually put an offer in writing, we just want to give it a shot and see where this will go, so we can officially move on....or maybe be pleseantly surprised. And David...really? Steal a house? I've been frank with the amount we have to spend for months now. The seller can take it or leave it, no hard feelings. And we are using their realtor, despite the fact that they have a house we want, and we have the cash they want. The realtor has spent maybe a total of 2 hours with is in 6 months...and is about to help with some paperwork. And he'll still get his 4-6%. Who is stealing? I have a choice to use a realtor or not...but once one is involved, a home buyer has no choice but to go through the middle man in some way. I suppose I should stay off zillow...but it sems like many other people enjoy the open discussion here, silly me ;)
- David Barr, "dpbarr2000"
- Contributions:280
You want to steal a house, avoid paying an agent for their expertise, then use Zillow to ask for free advice from agents? This is just one reason I don't advertise on Zillow.
- Joshua Stein, "JSteinHomes"
- Contributions:140
" The listing agent sounds willing to work with his commissions to make it more of a win win for everyone."
- Especially the listing agent, who now gets to keep 100% of any commissions instead of splitting it with another agent. So, what does it matter if the agent shaves off a point or two (from the money paid by the sellers, not you) if he's still guaranteed to make more money on the deal than he would have with a co-op situation.
I too am curious why no offer was put in by you before, and why the home is no longer actively on the market. If you don't think you can duplicate that property for under $250k, why do you then think that it's worth less than that?
- Especially the listing agent, who now gets to keep 100% of any commissions instead of splitting it with another agent. So, what does it matter if the agent shaves off a point or two (from the money paid by the sellers, not you) if he's still guaranteed to make more money on the deal than he would have with a co-op situation.
I too am curious why no offer was put in by you before, and why the home is no longer actively on the market. If you don't think you can duplicate that property for under $250k, why do you then think that it's worth less than that?
- Kelly Erickson, "Kelly M. Erickson"
- Contributions:32
Hmmm, if they paid $340k for this home a short while ago, and it's been on the market at a discount of $285K and they've had zero bites on the nice home on premium lot....then it sounds like some details are missing.
If your final decision is made and you are using the listing agent, then at least call your attorney and discuss this in advance of the contract. Ask for your attorney to hold the EM!
When you purchase this way, the seller represents the seller, the listing agent represents the seller and now the buyer also is working in the best interest of the seller.
$240K cash is not a rude offer, not a low offer either. Please, call your attorney first.
If your final decision is made and you are using the listing agent, then at least call your attorney and discuss this in advance of the contract. Ask for your attorney to hold the EM!
When you purchase this way, the seller represents the seller, the listing agent represents the seller and now the buyer also is working in the best interest of the seller.
$240K cash is not a rude offer, not a low offer either. Please, call your attorney first.
- user159628
- Contributions:6
Thanks Cheryl, from what I understand, we can go ahead with the offer tomorrow...but will still have an 'attorney review/aproval period' available to us five days after any acceptance from the sellers. Would you say this info is accurate?
- Cheryl Talbot Real Estate, "Virginia Beach Homes"
- Contributions:674
The earnest money is whatever is customary for your region. In our area on this price home $ 500.00 would be enough consideration. You will need an attorney to close the transaction for you so they can tell you how much the costs will be to close. Be sure your earnest money is refundable. Just in case there are any snags. I would seek legal counsel in any case. Good Luck!
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
The scenario you describe is somewhat true in our market too, so that makes sense. I don't think your offer is so low it is insulting, but yeah, I'd let the agent take the heat...at least he brought an offer right.
We are having some difficulty finding exactly what we want also. And it would cost a fortune to build it, so I get that part too, I think you know what you want and plan to do it, so maybe an area agent will advise on a timeline and amount of earnest money.
We are having some difficulty finding exactly what we want also. And it would cost a fortune to build it, so I get that part too, I think you know what you want and plan to do it, so maybe an area agent will advise on a timeline and amount of earnest money.
- user159628
- Contributions:6
We couldn't build this home for under 250, much less with the lot (premium private pond lot)... so we're pretty confident that 240 is a good deal (and if it's not, it is to us, all that really matters). I'm not sure why the house has not sold (its been on and off the market a few times in the past two years)...I don't believe the sellers are all that motivated...and honestly I think anyone who can afford this particular house is looking for something a bit bigger and fancier (older neighborhood, which we love the charm of, but most people in our market are looking for the new construction, decked out models), OR, don't have that kind of money. Seems like things in the 'real steal' price range, 150,000 or less are moving in this area....and then the higher end deals in the 5-600,000 range, but homes that fall in between aren't moving very quickly around here? Either way, I would LOVE to avoid the agent. Present the seller with a check, we get the house, they get out of it, no questions asked... But I'm afraid of upsetting them, seeing as how their listing agent is family, and I'm sure they have a commitment to him. So we felt there was no harm in using him to make the offer, but we have no need for a buyers agent. The listing agent sounds willing to work with his commissions to make it more of a win win for everyone. Introducing another agent, just makes more commission to split, and less of our low offer gets back to the seller.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
Certainly your husband being a home inspector changes things. I would still ask for an inspection contingency so that he has the time to do a complete inspection.
What is your reason for not using a buyer's agent, as he would be paid from the seller's agent's commision? Then you would have a guide in the process.
Why do you think the house didn't sell in six months? Do you think it was pricing? I know the loss they are taking is a lot, but you have to protect yourself, not them. I have heard of houses worth less than half of what was paid for them in '07. What do you think the house is really worth?
What is your reason for not using a buyer's agent, as he would be paid from the seller's agent's commision? Then you would have a guide in the process.
Why do you think the house didn't sell in six months? Do you think it was pricing? I know the loss they are taking is a lot, but you have to protect yourself, not them. I have heard of houses worth less than half of what was paid for them in '07. What do you think the house is really worth?
- John Stewart, "nwhome.us"
- Contributions:2161
Until you questioned the amount of earnest money, I was almost OK with your using the Seller's representative to make the offer through. The challenge is that an EM for $8,000 would have been a great indication to the seller that you were motivated, but I would be very, VERY skeptical of handing that kind of money to a person who doesn't represent you. There are no end of excuses, legal, fair, or not that a seller can use to delay the return of the EM if a problem arises. If you have someone who represents YOU and knows how to deal with those issues, they've paid for themselves.
If your price is firm I certainly would have made the offer when it was on the market. If your offer doesn't insult the seller., it isn't low enough.
It always baffles me that some buyers think that by using the seller's representative that they will save any money. The agreement that determines how a listing agent is paid is a completely separate agreement from the Offer to Purchase. The buyer will never see the agreement nor have any influence over it. If the seller is motivated to sell, there is no motivation for the listing agent to reduce their commission that is outlined in that agreement. The bottom line is that you want to pay $240,000 for the house. Why do you care what an agent gets paid? Why not have your own representative?
QC is correct about the inspection. Is the property in an environmentally sensitive zone? Any radon? Is the polarity on the outlets correct? Is the panel grounded correctly? Is there any pest activity? Have therebeen any roof leeks? Any un-permitted improvements? What's in the crawl space? All of these are negotiation tools that can be used against the seller. Why give up the tool without presenting the offer first with it in there?
QC did miss the comment that you made that the sellers had no debt, so if they didn't reduce the price when it was listed they may not be very motivated to sell. The 25th task of your own representative is talk to the listing agent and determine the seller's motivation. It is much easier for agents to read between the lines of what is being said than someone who doesn't have these conversations every day.
If your price is firm I certainly would have made the offer when it was on the market. If your offer doesn't insult the seller., it isn't low enough.
It always baffles me that some buyers think that by using the seller's representative that they will save any money. The agreement that determines how a listing agent is paid is a completely separate agreement from the Offer to Purchase. The buyer will never see the agreement nor have any influence over it. If the seller is motivated to sell, there is no motivation for the listing agent to reduce their commission that is outlined in that agreement. The bottom line is that you want to pay $240,000 for the house. Why do you care what an agent gets paid? Why not have your own representative?
QC is correct about the inspection. Is the property in an environmentally sensitive zone? Any radon? Is the polarity on the outlets correct? Is the panel grounded correctly? Is there any pest activity? Have therebeen any roof leeks? Any un-permitted improvements? What's in the crawl space? All of these are negotiation tools that can be used against the seller. Why give up the tool without presenting the offer first with it in there?
QC did miss the comment that you made that the sellers had no debt, so if they didn't reduce the price when it was listed they may not be very motivated to sell. The 25th task of your own representative is talk to the listing agent and determine the seller's motivation. It is much easier for agents to read between the lines of what is being said than someone who doesn't have these conversations every day.
- user159628
- Contributions:6
Cindy, the sellers do not have a mortgage to satisfy, they own the home. Also, they paid $340,000 for it just a few years ago, so we're offering them a 100,000 loss (even in this market thats tough to swallow). Listing agent is distant family to the sellers, so we don't want to show up on their door step attempting to cut out the realtor, assuming they would like to work with him (and he showed us the home twice). Also, my husband IS a home inspector, so our little 'once over' was an educated one ;) We feel getting the home at 240 would be a real deal, we just need to get an official offer int o see if the sellers would even consider such a low number before we give up on this one.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
Have you considered that it may be overpriced, and that is why it didn't sell? They may owe more than it is worth, it seems like a lot of folks are pricing according to the balance on their mortgage.
Why go through their listing agent if he/she no longer has it listed, that will just cost the seller 6%. If it is all going to be so simple, why do you need an agent at all?
And a good looking over is not a home inspection. It might not have sold because of flaws you haven't seen. I agree it's a low offer, but you are leaving yourself open to a lot of issues.
Why go through their listing agent if he/she no longer has it listed, that will just cost the seller 6%. If it is all going to be so simple, why do you need an agent at all?
And a good looking over is not a home inspection. It might not have sold because of flaws you haven't seen. I agree it's a low offer, but you are leaving yourself open to a lot of issues.
Cash offer on home that is no longer an active listing.
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