Re: Concern About My RE Agent - Posted by Frank Chin
Posted by Frank Chin on June 01, 2004 at 04:41:31:
I’ve sold RE thru RE brokers, and my wife was a RE agent for a while. I also bought bought undervalued properties thru RE brokers. I think there are several issues:
1- How hot is the market in the area?? If RE sells for close to market in a reasonable time, then the agents may find low ball offers of 10% below a problem.
2- When I use an agent they repeatedly told me their price is the FMV, and it’ll sell quickly at that price for me. What if she presented an offer 10% below one week after listing. How is she to explain the price she gave me is wrong. And if they try to tell me its a price for a quick sale, my anwer would be "I thought the price you gave me was for a quick sale?? If my house sat for 60 days, it might be different.
3- Then it all depends on the sellers. I find a majority of them going thru RE agents would rather sit on a property for months to get another 10%, rather than sell it quickly.
Some years back, I had a neighbor spend eight months selling a home for 89K, and had RE agents come every weekend months on end. Then, I got a new job, I was worried that I’m going to have the same problem. Went to see an agent, and she said the FMV was 85K. It was the identical house except for the color. Showed the house on a weekend, got an offer for 82K on Wendesday, counteroffered, and sold at 83.5K.
But the interesting thing my RE agent said was other sellers would let the house sit for months for another 2K.
BUT, I already bought the house I was moving to more than 15% below FMV, a multi than cost twice as much so I was more interested in wrapping things up than an extra 2K. When I told my RE agent that, she said “well that makes a big difference, because everyone wants to get the last dollar out of the house to put down on the next one.”
Currently, my mother in law, 80 years old and retired, wanted to sell her home and move to a co-op. We spoke to her on the phone, and she got quotes for different brokers on the FMV of her home. Knowing her, she’ll wait months to get her price. She live there 25 years, so what’s wrong with waiting another 8 months?? Her home is worth 600K, so wouldn’t sitting around eight months worth the wait for another 60K?? If I was her RE agent, I wouldn’t present an offer 10% below market unless the house sat for a while.