The problem is coming up with a good starting point. The current listing price? The original listing price (many around here have been lowered since original listing)? What I think is fair?
I don’t want to save it for the end – I want that incentive in the realtor’s lap from day 1: You save me money, it makes you money.
[QUOTE=jtgain]
I’ve never heard anyone negotiate like that either. The fact that there are no appliances included, dead bushes, and a bad yard is usually reflected in the asking price. In other words, if the house had acceptable features in those areas, you would expect it to be priced as such.
In even other words, let’s say a house I’m selling that had good landscaping and new appliances would normally go for $150k. I know that my yard looks like hell and I’m not selling appliances, so I am asking $125k. Then you come along and ask for a discount because of the aforementioned.
Maybe this is what the realtor meant?
[/QUOTE]
Maybe it is what he meant. But the house wasn’t worth asking price to me with no appliances and the rest of it. It would be worth it if the appliances were included and the landscaping were up to snuff. So I made an offer reduced by the amount it would take to make up for the deficiencies.
I don’t see why you wouldn’t negotiate like that. The owner had an exaggerated (in my opinion) view of what the house was worth with its flaws. I had a different view. We couldn’t come to an agreement, so the owner in essence made a bet that he could find someone who would pay more. It didn’t work out - sux to he him.
You’re selling something at price $X. It isn’t worth $X to me, but it might be worth $X - Y. If you insist that Y = 0, well, good luck to you finding someone who agrees with you.
What other way is there to negotiate? If you insist on asking price, take it or leave it, fine, but that isn’t negotiation.
Regards,
Shodan
[QUOTE=jtgain]
I’ve never heard anyone negotiate like that either. The fact that there are no appliances included, dead bushes, and a bad yard is usually reflected in the asking price. In other words, if the house had acceptable features in those areas, you would expect it to be priced as such.
In even other words, let’s say a house I’m selling that had good landscaping and new appliances would normally go for $150k. I know that my yard looks like hell and I’m not selling appliances, so I am asking $125k. Then you come along and ask for a discount because of the aforementioned.
Maybe this is what the realtor meant?
[/QUOTE]
That hasn’t been my experience. The price of similar to above flawed homes would still be $150K…so the negotiating strategy sounds good to me.
[QUOTE=Joey P]
Is it legal/ethical to do that on the side. For example “Look, if you can get another $10,000 knocked off the price, we’ll sign the papers, and we’ll give you $300, cash, for your trouble.” That would make up the $150 that they lost AND reward them for getting you a better deal.
[/QUOTE]
Isn’t the incentive of the buyer’s agent basically, “get me the price I want, or I won’t sign the deal, and you won’t get any commission at all”?
[QUOTE=Joey P]
Is it legal/ethical to do that on the side. For example “Look, if you can get another $10,000 knocked off the price, we’ll sign the papers, and we’ll give you $300, cash, for your trouble.” That would make up the $150 that they lost AND reward them for getting you a better deal.
[/QUOTE]
I’m not an expert, but if the realtor were to do this, they’d almost certainly be violating the ethics rules (snerk) of their profession.
What a lot of people don’t understand is that, unless you, as the buyer, have hired the realtor to work specifically for you, the realtor’s commission is paid by the home seller, and he is obligated to represent the seller’s interests. It seems bizarre to most folks, but it’s true; even though the realtor spends all his time with you, he’s actually working for them. If he takes a payment as you describe, he’s working both sides of the transaction, and I can’t imagine any ethical rules for any profession that would permit that.
[QUOTE=Tom Tildrum]
Isn’t the incentive of the buyer’s agent basically, “get me the price I want, or I won’t sign the deal, and you won’t get any commission at all”?
[/QUOTE]
But as has been pointed out, the incentive for the realtor is virtually nil. He doesn’t really get anything more for any extra; he just wants you to buy quicikly and move move MOVE. Residential real estate is based on volume, because even large different in price is not a large difference in comission.
[QUOTE=Baker]
My father dealt with a good real estate agent. It was the office manager, the head realtor, that was a jackass.
Part of the process of transfering the title, when dad sold his house, involved my dad having to provide about $2000, something about differences in loan rates. No problem, my dad indicates that when the time comes he’ll write a personal check. The manager doesn’t want to take it, insists on a certified check. My dad is insulted, and the manager changes his tune and says that if the agents cosigns the check, he’ll accept it. My dad is still upset, and says if he isn’t trustworthy, the manager shouldn’t put the agent at risk by making her cosign. I can also include that the agent said the manager was disliked by all the other agents in the office for his high handed and snotty attitudes.
My dad retreats to think long and hostile thoughts. His solution was to go to the bank and withdraw $2000 in mostly one dollar bills, with a couple hundred in fives thrown in. He removed all the paper wrappers and tossed the bills like salad. On the day he was to meet with the manager and the agent, they get to the point where my dad has to provide the money. He dumps the bills out on the desk and says “There it is!”
[/QUOTE]
There’s more than one jackass in that story.
[QUOTE=Shodan]
Maybe it is what he meant. But the house wasn’t worth asking price to me with no appliances and the rest of it. It would be worth it if the appliances were included and the landscaping were up to snuff. So I made an offer reduced by the amount it would take to make up for the deficiencies.
I don’t see why you wouldn’t negotiate like that. The owner had an exaggerated (in my opinion) view of what the house was worth with its flaws. I had a different view. We couldn’t come to an agreement, so the owner in essence made a bet that he could find someone who would pay more. It didn’t work out - sux to he him.
You’re selling something at price $X. It isn’t worth $X to me, but it might be worth $X - Y. If you insist that Y = 0, well, good luck to you finding someone who agrees with you.
What other way is there to negotiate? If you insist on asking price, take it or leave it, fine, but that isn’t negotiation.
Regards,
Shodan
[/QUOTE]
I don’t see any problem with negotiating like that - that’s how it’s done around here (and most places in the US and Canada, as far as I know). Your realtor (sorry - REALTOR) was being an ass. Even if the price was already reduced, you can offer anything you want.
[QUOTE=Jodi]
There’s more than one jackass in that story.
[/QUOTE]
Yeah, isn’t it common practice to require certified checks for real estate transactions? It’s not like it’s all done on a handshake. (In fact, I’d have expected them to refuse cash also…)
[QUOTE=Vinyl Turnip]
Yeah, isn’t it common practice to require certified checks for real estate transactions?
[/QUOTE]
Yep- standard operating procedure. Dad was being unreasonable- no “insult” was meant.
[QUOTE=Vinyl Turnip]
Yeah, isn’t it common practice to require certified checks for real estate transactions? It’s not like it’s all done on a handshake. (In fact, I’d have expected them to refuse cash also…)
[/QUOTE]
In Japan, it’s the checks that are not allowed - you have to pay the deposit in cash, which is usually ten percent of the full value of the house.
When we went to sign the papers for our house there was a neat wodge of brand new cash all in their wrappers, sitting ceremonially on the table (we actually paid it to the bank by bank transfer). We signed all the papers over this wodge of cash, then as we were leaving I saw our seller beginning her process of buying her new bit of land (same agent) and the assistant just took a few bills off the same stack and ceremonially put it out on the table again!
[QUOTE=featherlou]
I don’t see any problem with negotiating like that - that’s how it’s done around here (and most places in the US and Canada, as far as I know). Your realtor (sorry - REALTOR) was being an ass. Even if the price was already reduced, you can offer anything you want.
[/QUOTE]
Me neither. Start low, set the tone. They teach you that in Negotiating 101.
Of course, its bothersome when you are on the other side. We just sold a house that we received 2 really lowball offers on…I didn’t mind so much, except for the personal nature of their response when we countered close to our asking. Its all part of the game.
Zombie Alert
As long as it’s been resurrected, I’ll share one.
We moved across the neighborhood 4 years ago and still have friends we visit back by the old home. A couple of years ago I noticed it was for sale again so I looked it up online to see what he’d done with the place. I was a bit shocked when I saw the interior pictures… he was using our damn pictures from when we sold it to himto try and resell his house. I was pissed, called the agent and demanded he take them down and use something else, his own perhaps? The agent, some young idiot balked and claimed it was perfectly legitimate, so I got our agent involved, who read him the riot act and got our paid for property off his site. She told me later she’d talked to some potential buyers who were understandably confused when they walked in expecting to see something nice and instead were confronted with a bachelor pad setting also inhabited by two Basset Hounds.
Moderator Note
Zombie thread raised by spammer who has since been disappeared.
Might as well share mine since this is back up!
Listed our house for sale over Christmas last year. The contract stipulated 5% commission split between buyer and seller agent. Had 3 offers within a few weeks. The first buyer’s agent had it written into their offer that he (the buyer’s agent) would get 3.5%. We said no and he withdrew their offer. We went with the 2nd offer/buyer and the first couple, who had spent hours at the house making sure it was what they wanted, lost out all because they had a crappy/greedy agent. It was bizarre.