Real Estate Question/Issue??

[mick-G]

Ok, i got a question, and kind of a personal issue. My dad is like almost 90yrs as some of you prob know i take care of him. He lives in a senior apartment, and gets around pretty well. Anyway, we been looking at small houses for him that are close proximity to stores shopping etc and very close to us as he is very independant(walking distance). Well, about 1 1/2yr ago we found one; not for sale but i went up to the door and asked the owner if they were willing to sell and offered him 20k over the market value. They hehawed around and reniged and later again a yr later said they were interested again at the last minute reniged again. We were going to pay cash, plus pay for attorney cost. Currently we had been talking to a realtor about trying to find a home in same area and she thought sending letters to the homes in that area would be good only after countless callings by her to see homes that didn't even fit the profile we were looking for. Well, it happens that one of the homes were the ppl that reniged twice 1 1/2 ago, and now were are dealing thru the realtor and they think we are willing to go the same price $160K, but I told the realtor "No way"! that that deal was over a yr ago and that they rejected it twice. I told her the highest we would go is $145K and that i had been looking for 3yrs in that area and even at 145K homes in that area are going for 125-140K at the most. Thru the realtor she told us they bought a home in AZ and need to move. They, from what we were told owe still alot on this home that they purchased in 2000'. This Real Estate agent called me trying to pressure me that the market would change and could go higher and on and on etc. Also i got wind from her that it was known that we had sold a higher priced home earlier and that there was no lack of $ on our side, which i thought was alittle bold to say the least. My question is, should we just pay the extra 20K extra, or go on principle here. I think that we should go on principle. I think the house is nice and all, but the way we been screwed around, I want to hold my ground at $145K. My wife and i do all of my dad's up keep reguardless so this will be more put on us to keep up a second home, but we also want him to be happy? Were kind of in limbo now. Any thoughts i would really like to listen too. I know this is kind of a personal issue, but i always like to hear from ppl that can give an unbias opinion.

[angryoldman]

Re: Real Estate Question/Issue??

Ok, i got a question, and kind of a personal issue. My dad is like almost 90yrs as some of you prob know i take care of him. He lives in a senior apartment, and gets around pretty well. Anyway, we been looking at small houses for him that are close proximity to stores shopping etc and very close to us as he is very independant(walking distance). Well, about 1 1/2yr ago we found one; not for sale but i went up to the door and asked the owner if they were willing to sell and offered him 20k over the market value. They hehawed around and reniged and later again a yr later said they were interested again at the last minute reniged again. We were going to pay cash, plus pay for attorney cost. Currently we had been talking to a realtor about trying to find a home in same area and she thought sending letters to the homes in that area would be good only after countless callings by her to see homes that didn't even fit the profile we were looking for. Well, it happens that one of the homes were the ppl that reniged twice 1 1/2 ago, and now were are dealing thru the realtor and they think we are willing to go the same price $160K, but I told the realtor "No way"! that that deal was over a yr ago and that they rejected it twice. I told her the highest we would go is $145K and that i had been looking for 3yrs in that area and even at 145K homes in that area are going for 125-140K at the most. Thru the realtor she told us they bought a home in AZ and need to move. They, from what we were told owe still alot on this home that they purchased in 2000'. This Real Estate agent called me trying to pressure me that the market would change and could go higher and on and on etc. Also i got wind from her that it was known that we had sold a higher priced home earlier and that there was no lack of $ on our side, which i thought was alittle bold to say the least. My question is, should we just pay the extra 20K extra, or go on principle here. I think that we should go on principle. I think the house is nice and all, but the way we been screwed around, I want to hold my ground at $145K. My wife and i do all of my dad's up keep reguardless so this will be more put on us to keep up a second home, but we also want him to be happy? Were kind of in limbo now. Any thoughts i would really like to listen too. I know this is kind of a personal issue, but i always like to hear from ppl that can give an unbias opinion.

Mickey Mick G. Glad to give an unbiased opinion pally. I heald my Real Estate license in 1993 to 1998. Fun business. So here's my opinion:
First question- Did the realtor who now has the house listed actualy take you through the house and show it to you? If they did, you are now almost bound to use that Realtor in the transaction. If the realtor did NOT show you the home, I would go find a realtor and sign a short term buyers agent contract. maybe only 30 days just to help you out. The listing agent is only working for the seller. They are who's paying them. So their fiduciary responsibility is to the seller. Be careful what you tell the lisitng agent, as she is obligated to go back and tell the sellers.
Secondly, pick a price in your mind you're willing to pay for the house, and stick to your guns. If you say you're willing to pay $145k, then don't go any higher. There's a reason why these people are selling. It may be they are in financial difficulty or a divorce. I don't know where you live, but what you can do LEGALLY is go to the county court house and look the deed up for the property. You can see how much they owe, wether they took out and home equity loans or lines of credit, etc... In some counties, you can do it on line. Call you recorder of deeds office and ask them if the court house records are on line. Best thing to do is put an offer in for $140,000. Let them counter offer to $160,000. You counter at $145,000. If they counter again, walk away. Give them a few weeks, and if it's slow, they'll call you back. I've seen it a hundred times before.
Good luck. PM me if you need anymore help.

[mick-G]

Re: Real Estate Question/Issue??

Thanks Bro! I will pm ya. This whole situation doesn't make sence to me.

[Hugh_Heifer]

Re: Real Estate Question/Issue??

They turned the offer down. I would not offer it again.
Maybe throw them a bone but not the 20.

JMO
Hugh

[mick-G]

Re: Real Estate Question/Issue??

Ya Hugh, thats what i was thinking, but im going to wait for them to call, as i have no intention of calling them. If they give me another counter offer like the one they gave me last night 158.6K i will surely walk away. What questions me is why would someone buy a home in Arizona, before selling the one they are living in, if they owe so much on it? Doesn't make sence to me, or there is something more to this than is being said.

[Hugh_Heifer]

Re: Real Estate Question/Issue??

Sounds like either, they are not to bright by not getting a deal in writing or they are just stupid.

Actually, my neighbor had an emergency (something about going out of state) and had to sell fast. got rid of his home for 30k under the value. I wish I could have scooped that up.

Hugh

[roark]

Re: Real Estate Question/Issue??

I would refuse to pay more on principle alone. They need to sell the house. Stay firm and their asking price will go down.

People buy houses without selling their old ones when their purchase on the new home is not contingent on the sale of the old one. Happens all the time, even with substantial debt on the property.

[JsJs24]

Re: Real Estate Question/Issue??

Don't go over 145k mick imo.

[edvedr]

Re: Real Estate Question/Issue??

i wouldn't go over 145k and i would tell the realtor that you didn't apprectiate the comment and i would find another one, hopefully you didn't sign a contract

[T-Man007]

Re: Real Estate Question/Issue??

As a Real Estate Appraiser I must advise you not to pay more than market value. 1-2%, that's one thing, but 14% over, that's way to much.

Here's the deal, if they have to move chances are they wont find another cash buyer and that means the buyer will need a loan to purchase. The appraiser is not going to bring it in over market value, unless they're looking to lose their license.

Furthermore, the Realtor has an ethical obligation to represent you as their client and perform their duty with YOUR best interests in mind. You need to tell the Realtor that if they continue to pressure you or continue to advise you this way you will be forced to turn them into the State for violating the ethics rules. The ethics rules are set nationally, so they are the same everywhere. I've taken this class personally and I know what they are and aren't supposed to do. They are supposed to be working for you, not against you. And any Realtor who advises a client to pay over market value is in the wrong. Period.

[mick-G]

Re: Real Estate Question/Issue??

Thanks bros i appreciate your concern and like your input. I called her (the realtors) v-mail today and left a message that we are firm on the 145K offer and will not change it. We have not signed anything with this realtor so im not worried about anything. I also told her in the v-mail that it is the responsibility of the seller to pay the commision and we have interest in paying that. I did all this real calmly but direct and to the point. I also said if they decide to not go with our offer its the option to put it on the MLS. Im just soo pissed that this realtor had the odasity to bring up a property that was sold along time so she could imply we had the money to pay the extra!! Even at the 145K offer we are still paying at least 5k over what i have seen homes of the same sq ft going for in that area. Oh, and T i initally offered the 160K a yr and a half ago, but it was not thru a realtor. I just went up to the door to see if there would be an interest and they renigged twice on it. This is a totally different situation, but with the same ppl. This realtor a yr ago was helping us look for homes but never showed use what we were looking for so i ignored her calls. Then out of the blue she calls me and I call her back and she says that she has an idea to send letters to the ppl that live on the three block were were looking that are in proximity to shopping etc. and this house happed to be one to get one of the letters of interest. This is how this all started. I typically would never pay over market value, but my dad wanted a house in this area. Now these ppl still want this or close to this price and im not willing since the renigged twice 1 1/2 yrs ago. Anyway, after the realtor got these ppl, now she is not really working in our interest, she is working to get them the most $ for their home, and i know she has a fiduatiary duty to them, but gezz we were the ones who were using her in the first place; with no contract of course, but all the same.

[daved150]

Re: Real Estate Question/Issue??

you know what your doing bro, stick to your guns. i'm sure you want your dad to be happy, but if you dont get this one, he'll be happy regardless, so long as he's with you.
good luck..

[T-Man007]

Re: Real Estate Question/Issue??

Mick,

If you engaged the Realtor first then she must represent you as your Realtor. It is illegal for her to represent both sides of the party. She can act as the transaction broker but she can not represent both of you simultaneously, it's illegal. They have an ethical obligation to be bias to the client and she is in violation of that if she was representing you and now whe's trying to get you to pay over market value to help the sellers. No matter how you slice it, she's in the wrong bro! If she is the only Realtor involved then she must remain neutral and act as the transaction broker, non-bias.

I would stick to my guns and tell her you will pay fair market value and that's it. Take it or leave it. The sellers are going to only get fair market value anyways if they put it on the MLS and I would mention to her that she's in the wrong to advise you, as your professional Realtor, to pay more than fair market value. Remind her that you are her client and she must remain bias to you or you will just get another Realtor who will do their job.

It's not about how much money you have, it's about what her job requires of her and whether she is going to do her job ethically or not.

I don't mean to be so pushy but I hate this type of crap. I see it everyday in my job. These stupid Realtors taking advantage of people who have money or who are not bright enough to see they are being taken for a ride. I don't dislike all Realtors but most are arrogant self-righteous asses. Atleast around here they are. It's because of the the stuff they do that people get in over their heads many times and it just pisses me off.

[mick-G]

Re: Real Estate Question/Issue??

I totally understand what you are saying T, but we didn't sign with this Realtor, she was just looking for homes for us but she always called me on ones that didn't fit the bill at all. Now since she sent these letters of interest to these homes and the one that happen to call her to sell happend to be these ones, she is like pushing us to pay this inflated price. I do know what she is doing though and i don't like it, because we were using her first and now since these sellers are using her to sell their home she is not even caring about offer, just what the seller want for it. I just don't like the idea that she had the odasity to bring up our status to justify the inflated cost. It just isn't right since she wouldn't had these clients if it weren't for us having her look.

[edvedr]

Re: Real Estate Question/Issue??

I just don't like the idea that she had the odasity to bring up our status to justify the inflated cost. It just isn't right since she wouldn't had these clients if it weren't for us having her look.

the conversation would have gotten really ugly from that point if i were in your shoes, that would have made me really really pissed