Re: Offer over asking price - Posted by Eric_MA
Posted by Eric_MA on March 29, 2006 at 18:54:24:
I see this all the time. An agent gets a listing with a property that is either upside-down or in forclosure, or both.
So the agent looks at the ammount owed, and adds his comission to it, and insists that that is the price the property MUST sell for.
In many cases, this causes the property to simply be overpriced, and it never sells. For my partner and I, it has created a niche market where we ask REALTORS® to refer such deals to us. We’ll list the property at the right price, negotiate a short sale with the bank and send a referral fee to the agent who brought us the deal.
That my friends, is being a true fiduciary for your seller. If you don’t know how to short sale, refer it to a REALTOR® who does. Oh, and you can get paid because it will actually sell this way.
Tyler, your obligation to yourself is simply to make the best offer on the market. If the seller can’t or won’t come down to it, find another deal.
I once represented a buyer for a house listed at 525K. We offered 400K.
The list agent then said perhaps the stupidest thing I will ever hear a list agent say:
“Well you know, we’ve had many offers. WE EVEN HAD ONE OFFER MORE THAN YOURS BUT THAT WAS SIX MONTHS AGO AND WE DIDN’T TAKE IT.”
So I pointed to my comps, and suggested to her that she advise the seller to either take our offer or get off the market.
They price reduced to 495, and then expired. It still hasn’t sold, and it’s been over a year. But I did my job, I wouldn’t let my buyer overpay, and end up being upside-down herself!
It’s not rocket science, it’s just real estate