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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Paying more than listing???
We found a house that our agent showed us it also so happens to be a house that is listed with the same agency. And they accepted our offer which was 17k more than listing. Thing is was it a smart thing to offer more? I thought people always sold at less than asking , I mean that's what gonna happen with my coop now, that I'm losing $. I wonder if our agent was really working for us...please give me any advice! Thanks!
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Posted 6/13/12 7:28 AM  |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
Thanks
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| Posted 6/13/12 7:28 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Paying more than listing???
Why would you arbitrarially pay 17k over asking?
Always submit an offer below asking, because you never know a seller's motivation until you do this.
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| Posted 6/13/12 8:09 AM |
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DumpsterBaby
My compass when I'm lost
Member since 5/11 2210 total posts
Name:
My anchor when I get tossed
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Re: Paying more than listing???
I would never offer more than listing. Was there a bidding war?
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| Posted 6/13/12 8:09 AM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Paying more than listing???
Wait a minute. Were there other offers on the house?
Bidding war?
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| Posted 6/13/12 8:17 AM |
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Re: Paying more than listing???
As far as whether the agent was working for you, was she your buyer agent? Often when agents are working with buyers, they are still working for the sellers. Traditionally, the agent always represents the seller (regardless of whether they are assisting the buyer or seller with the sale), unless the buyer elects to make them their buyer's agent.
This should be discussed at the outset, and if you are in NY, you should have been presented with and signed the NY State Disclosure form, which indicates who the agent is representing. If the agent is your buyer's agent, that option should be checked on the form. Also, because being a buyer's agent requires more work and involves more liability for the agent, many agents require their buyer clients to sign an "Exclusive Buyer Agency" agreement that ensures that if the buyer buys a home in a certain period of time (e.g., 3 months, 6 months), they will use the agent for their purchase.
But unless you have a buyer's agent, the agent is not your agent; he/she is still the seller's agent and is supposed to be working for the seller's interests.
If your agent was also the listing agent, then she could not function as your buyer's agent, too, on this particular house. But if your agent is not the listing agent, but her colleague in her company was, she can still represent you as a buyer's agent. It's called dual agency with designated agents, because her broker is really representing both the seller and buyer in this scenario, but different agents are working with each. It's fine, as long as it's disclosed to you at the outset.
If you did have a buyer's agent, I wouldn't assume she didn't do her job just because you wound up offering $17K over asking. First of all - as a buyer's agent, I never tell my clients what to offer. I advise them on their pricing strategy (commenting on whether their starting offer is reasonable or not) and review comps with them to show what similar homes are selling for, so they can make an educated decision. But ultimately, the decision of what to offer is the buyer's.
A buyer agent's job is to help buyers achieve their real estate goals and safeguard their interests in the process, which means helping them get the house they want (which may not necessarily be the best deal on the market). In this case, the house you are paying may be the absolute lowest the seller would take.
In some cases, sellers deliberately price their homes below market value in the hopes of starting a bidding war. If there are multiple offers, the price will rise up above asking to be more in line with market value. The market is self-correcting that way. So what you are paying may not be more than market value, if that was the situation. However, if the house was priced at or close to market value, then you may be paying above market value for the home. It's hard to know without knowing anything about the market value of the home you have the offer on, which is dictated by what comparable homes are selling for.
But the bottom line is, a home is worth what a buyer is willing to pay for it. So I assume if you offered $17K above asking, this particular house is worth it to YOU. In which case, you didn't overpay!
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| Posted 6/13/12 8:19 AM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Paying more than listing???
Maybe there were other offers on the table but.....Otherwise I don't know why you would jump directly yo paying more and the 17k figure seems a little odd.
I feel like you got hosed a little.
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| Posted 6/13/12 9:11 AM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
the sellers originally accepted another offer, but those buyers backed out b/c of feng shui reasons, so we were the next in the offers which was $5k less than theirs, but still 17k more than listing. the houses listed in the neighborhood are higher than this home. I feel like this agency does list homes lower to create a bidding war. I do like the house, but I just want to be sure I wasnt "hosed" I'm the type of person who needs to see things to understand.
we never signed anything with our buyer agent. our buy agent isnt the listing agent on the seller's house, he's just one of the agents withing the agency.
also we are looking to sell our coop. you think we should use our same buyer agent or a different one.
THANK YOU TO EVERYONE!!!!
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| Posted 6/13/12 9:33 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Paying more than listing???
this was 2 years ago, but when we were looking we got into a lot of bidding wars, and a lot of the houses we offered on ended up selling over asking.. i am not sure if that is the norm today though.
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| Posted 6/13/12 9:51 AM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
we seen houses mostly thru our agents agency. and accdg to those houses they were all sold more than listing. so that's why i'm going by. (which i hope is not too jaded) the area is a very popular area, and the mortagage rates are low. so i'm attributing the quick sales and higher than listing to all these factors....am i missing something?
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| Posted 6/13/12 9:58 AM |
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Re: Paying more than listing???
Posted by jennyal
the sellers originally accepted another offer, but those buyers backed out b/c of feng shui reasons, so we were the next in the offers which was $5k less than theirs, but still 17k more than listing. the houses listed in the neighborhood are higher than this home. I feel like this agency does list homes lower to create a bidding war. I do like the house, but I just want to be sure I wasnt "hosed" I'm the type of person who needs to see things to understand.
we never signed anything with our buyer agent. our buy agent isnt the listing agent on the seller's house, he's just one of the agents withing the agency.
also we are looking to sell our coop. you think we should use our same buyer agent or a different one.
THANK YOU TO EVERYONE!!!!
If you are aware that similar homes in the area are selling for around the amount you offered, and you are aware that houses in that area typically sell for more than asking, then it doesn't sound like you got "hosed." But ultimately, you are in control of what you decide to pay, so not sure how you could get hosed anyway, unless someone misrepresented something to you about the house.
But understand that if you never signed anything with your agent, he is NOT "your agent." He is an agent of the seller who is assisting you with the process -- the seller is his client, to whom he owes all his fiduciary duties. You are his customer, and he has to treat you honestly and fairly, but his duty is to protect the seller's interests, not yours.
All buyers out there need to understand this at the outset. Electing to have a buyer's agent is the only way that an agent is going to negotiate for YOU, do due diligence for YOU, etc. And you are the one bringing the money to the table, so don't you want that protection? Otherwise, the agent is basically a liaison helping you broker a deal, but is not your advocate in any way. If the agent you've been dealing with is trying to get you, the buyer, the best deal, he is breaching his ethical duty to the seller. If you are ok with the fact that the agent is obligated to get the seller the best deal possible (and many people are), that's fine, but you must understand then that you don't have an agent representing you, you merely have an agent working with you.
You should have at least signed an agency disclosure form with your agent, if you are in NY. It's the law that this form be presented at the first substantive contact with a buyer (whether at an open house, a private consultation, a showing appt, etc.). This form is a way to mandate that the real estate agent explain who he or she is working for at the outset and that the buyer sign the form to acknowlege they've been so advised. The agent should explain the buyer agency option at this point, but not all agents are knowledgeable or comfortable with buyer agency, so some just gloss over it. If you didn't at least sign this form with your agent, your agent is out of compliance with the law.
Sorry to go on and on, and hijack the post, but it is SO important that buyers be educated about agency/representation issues in real estate, and so few people understand it!
Message edited 6/13/2012 10:38:15 AM.
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| Posted 6/13/12 10:14 AM |
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julybride0706
LIF Adult
Member since 3/07 1376 total posts
Name:
kaitlyn
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Re: Paying more than listing???
Posted by jennyal
we seen houses mostly thru our agents agency. and accdg to those houses they were all sold more than listing. so that's why i'm going by. (which i hope is not too jaded) the area is a very popular area, and the mortagage rates are low. so i'm attributing the quick sales and higher than listing to all these factors....am i missing something?
All sold more than listing?? Sorry, thats hard to believe. Did you check the comps? 1 of the areas we are conisdering is also very popular in Queens and i dont think anythg was sold abv the listing price.
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| Posted 6/13/12 10:30 AM |
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mrsej
The cutest!
Member since 1/07 2495 total posts
Name:
Mommy
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Re: Paying more than listing???
It doesn't sound like you were hosed. In the area I am looking to move to (Westchester), many homes sell at or above listing. There are bidding wars and it can be a nightmare. Alot of times agents put the houses on for less, knowing that there will be bidding wars.
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| Posted 6/13/12 10:40 AM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Paying more than listing???
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
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| Posted 6/13/12 11:30 AM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
I told my agent a range, to start at asking. and the most that i could do was 17k above askin...
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| Posted 6/13/12 11:38 AM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Paying more than listing???
Posted by jennyal
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
I told my agent a range, to start at asking. and the most that i could do was 17k above askin...
Did you make a bid at asking price and were countered? Or did the agent tell you right away there were other offers and you needed to bid higher?
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| Posted 6/13/12 11:40 AM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
Posted by Karen
Posted by jennyal
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
I told my agent a range, to start at asking. and the most that i could do was 17k above askin...
Did you make a bid at asking price and were countered? Or did the agent tell you right away there were other offers and you needed to bid higher?
i told him to start at asking. I also told him that i wanted to see the other offers that were made to be sure i didnt overbid.
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| Posted 6/13/12 11:55 AM |
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Re: Paying more than listing???
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
Until a buyer signs the contract, he/she can back out for any reason (feng shui included) or no reason at all!
Although it is really unethical for the listing agent to reveal exact offer amounts, if that in fact happened. It's ok to say "there are other offers pending" or "the last accepted offer was above asking" but it's not ok to reveal amounts. It harms the seller's position -- the listing agent should be keeping that info confidential to try to get the seller the most #.
Unfortunately, some agents do play fast and loose with the facts about other interested buyers and offers. We joke around in my area there are a few agents that ALWAYS have other offers on the house, no matter if it just came out a minute ago. So you KNOW it's bs.
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| Posted 6/13/12 12:18 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Paying more than listing???
Posted by Century 21 Dallow - Christine Braun
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
Until a buyer signs the contract, he/she can back out for any reason (feng shui included) or no reason at all!
Although it is really unethical for the listing agent to reveal exact offer amounts, if that in fact happened. It's ok to say "there are other offers pending" or "the last accepted offer was above asking" but it's not ok to reveal amounts. It harms the seller's position -- the listing agent should be keeping that info confidential to try to get the seller the most #.
Unfortunately, some agents do play fast and loose with the facts about other interested buyers and offers. We joke around in my area there are a few agents that ALWAYS have other offers on the house, no matter if it just came out a minute ago. So you KNOW it's bs.
I totally know what you are saying, but feng shui, really?!?!? Seems like an odd excuse, but what do I know  .
I assumed from the OP the other offer was already in contract, but you are right, if they weren't there is nothing to stop them from backing out.
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| Posted 6/13/12 12:22 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Paying more than listing???
our house originally listed for 22k less than we paid for it.
on day 1, TEN full price offers. We were the first full price offer to come in. The sellers decided to raise the price on the house by 20k. We offered that 20k and were accepted.
On the day of inspection, we found out that another offer came in over ours but the buyers agent hadn't yet presented it  (our seller was a bit of a ditz and was clueless)... the second offer was 5k over ours. We finally settled on offering ANOTHER 2k for the home.
Granted, the house was listed WAY too low to begin with so the +22k was still a fair offer.
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| Posted 6/13/12 1:02 PM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Paying more than listing???
Posted by Karen
Posted by Century 21 Dallow - Christine Braun
Posted by Karen
Sorry, but something doesn't sound right to me. A buyer can't just back out for "feng shu" reasons?!?!
And if I am following your math correctly, those people bid $22k over listing? How do you know all of this? How did you originally know to bid over asking?
I feel like these "other buyers" might be a set up to get you to bid more, sorry.
Until a buyer signs the contract, he/she can back out for any reason (feng shui included) or no reason at all!
Although it is really unethical for the listing agent to reveal exact offer amounts, if that in fact happened. It's ok to say "there are other offers pending" or "the last accepted offer was above asking" but it's not ok to reveal amounts. It harms the seller's position -- the listing agent should be keeping that info confidential to try to get the seller the most #.
Unfortunately, some agents do play fast and loose with the facts about other interested buyers and offers. We joke around in my area there are a few agents that ALWAYS have other offers on the house, no matter if it just came out a minute ago. So you KNOW it's bs.
I totally know what you are saying, but feng shui, really?!?!? Seems like an odd excuse, but what do I know .
I assumed from the OP the other offer was already in contract, but you are right, if they weren't there is nothing to stop them from backing out.
anyone can back out at any point if there is no signed contract.
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| Posted 6/13/12 1:03 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
the other offer wasnt in contract yet, just the home inspection was done.
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| Posted 6/13/12 1:11 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Paying more than listing???
Where can I get a listing of sold houses in the area on my own, besides from my agent. Just to make sure I didnt overpay.
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| Posted 6/13/12 1:14 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Paying more than listing???
I have seen it, some agencies list really low to bring in multiple offers and create a bidding war. If you are sure of the prices in the area, and sure that you are not overpaying, then I see nothing wrong with it.
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| Posted 6/13/12 1:18 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Paying more than listing???
Posted by jennyal
Where can I get a listing of sold houses in the area on my own, besides from my agent. Just to make sure I didnt overpay.
www.redfin.com
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| Posted 6/13/12 1:18 PM |
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