Bad Realtors

Same story here.....I was in a hurry to sell (job promotion and move) and happened to be right in the middle of a MAJOR remodel. My agent showed up to do a walk through and said we were pricing too high for the market and convinced us to list quite a bit lower (rooky mistake #1). In a few days I received a lowball offer and countered. My counter was accepted (provided I complete the remodel in progress- Rookie mistake #2) and my agent FINALLY informed me of the relationship to the buyer (her daughter) Rookie mistake #3......Fast forward one week and I'm working on the house and a fellow stops by to inform me of just how bad I got taken as he had contacted the agent and offered ABOVE my original asking price AS IS.....I of course was never told of this second offer until after I had signed off. Filed the complaint (along with second buyers statements) and the agent lost their real estate license.....Now I'm not very vengeful by nature but get in my back pocket for 20K and you had better bring a lunch cause we're going to be at this for a while LOL. I dislike "Realtors", "Agents", "Lawyers", "Car Salesmen", "Telemarketers" and "House cats" with equal enthusiasm and vigor....

There are good and bad of all professions.

My DW emailed an agent for more info on a property we are intererested in. Property has been on the market for 18 months (found out from owners daughter). Agent told her in email that it was a hot property and was going to go quick. Never did answer her questions.

We have an appointment throught our agent to look at it tomorrow. Tax value is like $82,500. The owner wants $96,800. I think a little negotiating is in store if we decide we like it. What is a good starting point?

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Simple Things are Better!

AJ, "Tax value" can be everything from a figure that is dead on, to totally worthless. I build in a county that decided, for better or worse, that the "move-ins" (city people) were going to bear the brunt of any increase in taxes for as long as they could possibly squeeze them. They refused, in violation of state law, to update a county wide assesment that was nearly thirty years old. This meant in that a lot of the locals were paying taxes on houses valued at their 1967 "tax value". In some cases individuals were only paying 15-20% of the real figure, once the county was forced to reassess these folks saw their taxes go from $400/yr to $2400/yr. On the other hand their Tax value went from $6 or 7K. to $100,000. The opposite is happening in FL. at the moment. House prices skyrocketed and the local governments took the opportunity to establish new "Tax Values" and the real estate taxes skyrocketed also. I have a friend who rents her house out in the Miami area. It will support a little over a grand a month in rent. The town just informed her that they are looking for $10,000 next year, in property tax, as values continue to drop. Given the property insurance situation and the taxes, this house will continue to lose money until the rent is doubled.
The best way to determine a starting offer is to have YOUR realtor do the proper research ahead of time. Tell them you want to see three RECENT, SOLD comparable properties. Also tell them that you want a year's worth of sold listings in your area. These listings need to be in a range of similar properties and values, such as "all sold, single family properties in the $60-100K range". Make sure you get all the details such as time on the market, if the property was relisted, asking VS selling price, sq. footage, heating system, if it was a foreclosure? etc..... Once again everything needs to be SOLD info. This information is available (to your Realtor) at the click of a mouse, and you need it to make an informed decision. Good luck.

"We have an appointment throught our agent to look at it tomorrow. Tax value is like $82,500. The owner wants $96,800. I think a little negotiating is in store if we decide we like it. What is a good starting point?"

For a couple of hundred bucks you have have a profession appraisal done. If you pay for it you do not need to share it with the seller. You might if say the appraisal came in at $90,000, but not if it came in at $100,000.

I suspect most people low-ball the initial offer, at say 85-90% (at list or estimated market value), and then negotiate from there through counter-offers.

My mum is pretty savy about real estate she always takes 10% off the asking price , she then takes a good look at what needs to be done and thentakes those fix up prices off the asking price , then makes an offer. She quite often is right on the par for the market. What you need to do is find out what places sold for in the area and the condition they were in, drive around and look at the properties it will give you a pretty good idea of the region's values and what the differences are and why.

It sounds to me like her tushy might have been more than a little bit warm.
And with her eyeballin' Roger maybe she had a different sort of "business" in mind.

That is pretty much my idea too. However I am going to get input from my agent. My agent works for me so will get me the best deal possible. I will see what happens.

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Simple Things are Better!

No, but I do talk to her on the phone a lot!

No offense, but unless you are armed with a whole lot more info, this theory could cause a lot of harm. For instance, I'm located a short distance from you. The hot market here is anything under $250,000. If you are looking for a nice property, fairly priced and under $250K. the seller will laugh at a 10% discount offer, and sell the place to somebody who has done their homework, within a few weeks of signing the listing. Now, move one notch up $300K. The typical product lasts 92 days on the market and sells for 97% of asking. Once you hit the "ceiling" for this market and head for the half-million category listing times and selling prices are much different. Drive around my neighborhood and I'll show you three houses that the owner would sell you in a heartbeat, for 10% off, and be thrilled that you failed to do your research. Why? because all these houses have issues, nothing major, just problems that make them less desirable than the other inventory available. Therefore, they are overpriced, and poorly represented by the seller's agent. None of this information can be learned by driving around the neighborhood, or tossing lowball offers at sellers. It's all information that every competent Realtor in the area is both aware of, and happy to provide to any potential buyer. Knowledge is power. Homebuying is far too expensive and risky to engage in without as much information as you can get your hands on. I can show you homes that would be a steal at 10% off asking, and homes that would be a gigantic mistake at 50% off. I can show you neighborhood that look great, while your "driving around" but they are full of gangs, violence and drugs. They certainly don't appear to be, they look like whitebread America, but without the research, how would you know?

On the last tract I added to the farm the seller was adament his price was $48K, but would accept $45K if I paid realty commission. (Direct negotiations - properly not listed.) I ended up doing so by the realty being willing to take a lower commission on the sale.

I have used this same realtor for some 16 years on various purchases. Particular value here was she knew the seller's daughter and talked to her about her father selling the property. Daughter then talked her father into it. I know at least two other people who had approached him directly and he told them it wasn't for sale.

Tioga,

Am getting all info I can. Working of county and state resources. My, "I stress", My agent is getting all pertinent info available ready for me. I will be represented from start to finish on this deal.

The daughter of the property owner said her father was motivated to sale and it has been on the market for 18 months. We will see were it leads.

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Simple Things are Better!

The only real estate agent/Realtor I've ever met that I trust is the one who has the same mother as me. First house my wife and I tried to buy, we told the agent on a Friday afternoon we were ready to make an offer but wanted to have the house inspected over the weekend before making a firm number. Saturday the inspection goes great, Monday morning we call and she tells us she sold the house over the weekend to some out of stater who offered cash on the spot. Never even bothered to call us first. She lost her license a few years later for fooling around with escrow accounts. And the buyer had the gall to call me a few weeks later and ask for the inspector's report!

Another time we found a great house, made offers and counteroffers, only to find out later that the agent was using us as a stalking horse to get more money out of another buyer. We were bidding against someone and didn't even know it.

Listed our house a couple of years ago with a local agent. We asked her to walk through the house and tell us what we could do to make the house more attractive. She said leave it as is, let the new owners make the changes they want. Then she tried to get us to lowball the price in a hot market because the house needed paint and paper! When we declined, our house became the "first show," the house the agent shows a prospective buyer first in a day of looking to make the others look good.

Never, ever, under any circumstances, trust a real estate agent.

Sounds like she was a "Fantasy Fulfillment Specialist".

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Diamondtim

You can tell what someone thinks by reading the bumper stickers on their car. You can also tell if they think at all.

Hey.

If the seller really wanted to sell for what you offered, he would have gladly signed the rewritten papers. Something is wrong...bypass the agents and talk to the seller personally. Agents are notorious at reworking the sellers words. The seller just might be crotchity or got a better offer from someone else. Might be a shakedown to try and get more money out of you...don't be too eager. Remember, this is a buyer's market...foreclosures have nearly doubled this year.

RF

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It's not good enough that we do our best; sometimes we have to do what's required. - Winston Churchill

We wrote this one off. Way to much drama on it. Actually was a blessing in disguise cause we found something that was a lot better and will suit our purposes much more.

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Simple Things are Better!

Real Estate Agents can be good or bad. We've had some that didn't listen, and one that was just plain crazy. Needless to say we didn't stick with them. We have also had very good realtors that have gone above and beyond. (One helped us unload boxes from the U-haul and another got us the key to the new place in the middle of the night when we were delayed arriving due to an accident.)

And we always sell our properties ourselves - longest it has ever taken was 2 weeks and that was only becuase a real estate agent got involved.

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Wags Ranch Nigerians


"The Constitution says to promote the general welfare, not to provide welfare!" ~ Lt. Col Allen West

Getting that tax assessment on your home is a double-edged sword, so be sure you know what you're possibly getting into before having it done.

Here in Ontario, assessments have become a big headache for homeowners. See, the thing is, many homes had not been reassessed for decades. All of a sudden, it was required to get a reassessment. So, senior-aged homeowners who were paying yearly taxes on a house assessed at say, $50,000 would be reassessed at say $100,000 and would obviously then be dinged for the extra yearly taxes. They are not happy campers, as you can imagine.

The thing is also, the assessments do not always take into what your house really has to offer, but often relies on what OTHER homes nearby are worth. So that guy beside you that builds a $300,000 house in a $50,000 house neighbourhood makes other peoples' values go up. Good for the neighbourhood if you're selling, not so good for the old guy with the basic box house who has to fork over the sudden rise in taxes.

Often, the assessment office hasn't even been in your neighbourhood but deems your property to be worth more. You get informed through the mail that your house is now worth double, pay the taxes please. If you dare call to ask what makes your house suddenly worth so much, you get a vague answer about "property values in your area". For all they know, you have a pitched tent there. Many homeowners prefer to lay quiet and not rock the boat. If an actual living and breathing reassessment officer comes calling, they may have a look around and determine that your "soon-to-be assessed at $100,000" home actually has some things that they didn't take into account and therefore "readjust" your assessment, and bump your tax bill even more.

On the other hand, if you are selling, assessments may come in handy. Your house may be "worth more" and thereby you can ask a higher price. And buyers DO look at the assessed price. If you are asking $200,000 and the assessed value is only $100,000, good luck with selling. If you are asking close to assessed price, you will get buyers that consider it fair. Many buyers considered themselves as having made a good deal if they get a house for UNDER the assessed value. Keep in mind though: if you don't sell your house after having it assessed, you will be responsible for paying those extra taxes on it every year.

Example #1: Our first house was originally assessed at $80,000. Just before selling (4 years after buying), we had it reassessed: $95,000. We sold it for $97,000 easily as we had several offers.

Example #2: We bought our house here. Property was valued at approximately $180,000. Sellers had it up for sale for $200,000, then dropped it down to $190,00. We got it for $179,000. Tax assessment office mails us: "As new homeowners of this property, we have reassessed the value of your home". Keep in mind, they never actually left the main office that is an hour away, nor do they have any idea of what is inside the house (# of baths, etc, which I suspect the old homeowner added without a permit), nor know what buildings are on the property. Again, we could have been living in a one room shack for all they knew. They are going by other homes' values in the area. Our reassessed value? $220,000. So good that we are paying a mortgage of 179G on a (theoretically valued) 220G home. The catch of course: we are paying taxes on the 220G. So we're not sure whether to go "WOO HOO" or not.

Here in Ontario, it has been very common for many houses to be reassessed as they are sold. I guess this is to avoid angering the old homeowners? So they just wait til the new ones get in there. Dirty rats.

I really don't know that much about the whole Ontario Reassessment deal in general legalities, but this is generally how it seems to work insofar as home owners are concerned.

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"The early bird may get the worm, but the second mouse gets the cheese in the trap."

"Getting that tax assessment on your home is a double-edged sword, so be sure you know what you're possibly getting into before having it done.”

Tax assessment and appraisal is very different here in the states and as Canadian it tales some getting use to.

Appraisal is based on what similar houses have sold for and if your house or property is out of the norm for the area you it is hard to get good one.

In Canada it was the value of the home based on size, materials, area etc. more of a formula than a comparison( at least it was when I sold there almost 10 years ago)

Tax assessments are NOT market value. The best way to avoid being taken by a realtor is to hire a good appraiser. The couple of hundred dollars you spend on what we call a "pre-listing appraisal" can save you thousands. I have seen that happen over and over again.

My Ace in the Hole is that an appraisal will be done as ordered by the Veterans Administration since it is a VA loan. An appraiser is picked at random to do the appraising so no colusion takes palce. You have a fair appraisal as it is not intended to favor the seller or the buyer.

My Realtor is and has been helpful to the point where I will say that I would have him as a friend and I don't call just anyone a friend.

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Simple Things are Better!