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Should I make a bid before house is appraised?

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Anonymous
Not applicable

Re: Should I make a bid before house is appraised?

Do not submit an offer until you get an agent.  Worse case, call around anf find someone to submit just this offer.  Sometimes they want contracts.  Since you have already done the legowrk on this one, they should be willing to submit an offer for you on this one and handle it.  If you get along but this deal falls through, then you can "sign" with the agent.

 

Also, do you already have financing in place.  Alot of realtors (and sellers as well) will only work with people who are pre-approved.

Message 11 of 27
Anonymous
Not applicable

Re: Should I make a bid before house is appraised?

I have to ask a really stupid question, but its something that has been nagging at me.  Basically, I think there is a chance the agent I'm meeting with today might be my agent and I don't even know it.  Seriously.  Here's why:

 

- I see home online on real estate agent's website.  I call to make appt. to see and she shows it to me.

- After viewing it the second time and getting pre-approval, I tell her I want to make an offer.  She tells me that she "has to check with the listing agent first to make sure its still on the market".  I say okay fine.

- She calls me back a few days later and says she checked with the listing agent and it is still on the market, lets meet Thursday, I write up the contract, you bring a $1000 for the deposit.  Okay, no problem.

 

Then I find out the "listing agent" is really the seller's agent.  If she is the seller's agent (I thought), why is she telling me she has to check with the listing agent???

 

I never signed any document with her, all she did is show me the house.  Is it possible she is acting as my agent even if I didn't sign any kind "working agreement"??  If she is then this works out perfectly.  Man am I confused. 

Message 12 of 27
BungalowMo
Senior Contributor

Re: Should I make a bid before house is appraised?


@Anonymous wrote:

I have to ask a really stupid question, but its something that has been nagging at me.  Basically, I think there is a chance the agent I'm meeting with today might be my agent and I don't even know it.  Seriously.  Here's why:

 

- I see home online on real estate agent's website.  I call to make appt. to see and she shows it to me.

- After viewing it the second time and getting pre-approval, I tell her I want to make an offer.  She tells me that she "has to check with the listing agent first to make sure its still on the market".  I say okay fine.

- She calls me back a few days later and says she checked with the listing agent and it is still on the market, lets meet Thursday, I write up the contract, you bring a $1000 for the deposit.  Okay, no problem.

 

Then I find out the "listing agent" is really the seller's agent.  If she is the seller's agent (I thought), why is she telling me she has to check with the listing agent???

 

I never signed any document with her, all she did is show me the house.  Is it possible she is acting as my agent even if I didn't sign any kind "working agreement"??  If she is then this works out perfectly.  Man am I confused. 


IMO...you do not want touse the sellers agent as your agent too.  That would be like a divorcing couple using the same lawyer.

 

Just not a good idea.  You need someone separate that will be looking outr for YOUR interest, just like the seller has their agent looking out for their interest.   Those two iron out the specifics for the selling & buying parties.

BK 7 discharge 06.24.2020 No Fico score at all. Smiley Sad
Message 13 of 27
kball64
Frequent Contributor

Re: Should I make a bid before house is appraised?

Back to the OP regarding the appraisal, we made an offer before the appraisal was done.  However, we did our homework and searched online county appraisal records to see what the house appraised for at in 2008.  Our agent also pulled up some comps in the area that recently sold.  After our offer was accepted and we got our approval, we had the appraisal ordered. 
Message 14 of 27
GregB
Valued Contributor

Re: Should I make a bid before house is appraised?

Sounds like you have a problem.

 

If you see a home on a real estate agent's website, you can't call that agent and have them show you the house!    The person that shows you the house is the one that generally gets the buyers share of the commission. If you hire another agent, the one that first showed you the house can come in later and say "I showed him that house first". A nasty legal mess.

 

THIS IS WHY YOU ALWAYS TELL ANY AGENT AT AN OPEN HOUSE THAT YOU ALREADY HAVE AN AGENT. Otherwise they showed you the house first. Most agents have open houses to get new clients and make their client thnk they are working hard to sell their house.

 

It is possible that the listing agent and the one that showed you the house are two separate people but work for the same real estate agency. In that case they are two separate people. Better but far from ideal since they are much closer than two agents at separate agencies.

 

I would start by finding an agent that you have faith in and look at the available properties. If one of them turns out to be this house, make sure you are covered!

Message 15 of 27
Lel
Moderator Emeritus

Re: Should I make a bid before house is appraised?

 "I see home online on real estate agent's website.  I call to make appt. to see and she shows it to me."

 

A lot of realtors have search engines in their websites that allows you to search all listings in a given area, even those that are NOT listed by the realtor.  Based on what you have written, it sounds like this home was NOT listed by the realtor that you contacted.  Thus, she would not be the seller's agent.

 

Some realtors work for large companies like Coldwell Banker.  The realtor's website might feature all the properties listed by the parent company, not just by the individual agent.  Thus, the buyer's agent (the woman with whom you spoke) and the seller's agent (the person who listed the home for sale) might be different people working for the same company.  This might make negotiations for a lower price more difficult, since the lower price would cut into your agent's commission, her colleague's commission, and the commission that goes to thei parent company.

 

 

"I never signed any document with her, all she did is show me the house.  Is it possible she is acting as my agent even if I didn't sign any kind "working agreement"?"

 

Taking the time to show you the house is exactly how realtors make a living.  For buyers, much of the time there is no signed agreement to buy a home through that particularly realtor.  It's different on the seller's side.  You are free to go to another agent; however, if you end up buying the house that was shown to you by the woman you contacted, then she might have some claim to the commission that is paid by the seller.

 

At this time, she is acting as your agent.  If you sign that purchase agreement today, there will be no doubt about it at all. 

 

Message 16 of 27
Anonymous
Not applicable

Re: Should I make a bid before house is appraised?

I know this is all very confusing but really, if you have to ask these questions then you really need someone with knowledge to represent and support you.

 

Here's another catch... the 3% you're trying to negotiate isn't really yours to negotiate with, it belongs to the seller's agent. The sellers themselves will still be paying out the same money (6% or so) and they're the ones that will make the decision on purchase price, not their agent. 6% is typically what's on the table, if there is only one agent it all goes to them. If there are two agents it will be divided between the two agents. Either way, it never belongs to you, or the sellers, as a negotiating tool. Call some agents in your area and i'm certain they will confirm this to be true.\

 

There is little to no benefit in not having a buyer's agent, assuming you have a good one. You need to straight out ask the agent if they work for the seller in any capacity or if the listing/seller's agent is a colleague.

 

In my area it is rare for a buyer's agent not to require a contract once they've begun taking time to show you homes. The fact they haven't asked you to sign anything worries me a little that they may be working for the seller.

Message 17 of 27
Jazzzy
Valued Contributor

Re: Should I make a bid before house is appraised?


@GregB wrote:

Sounds like you have a problem.

 

If you see a home on a real estate agent's website, you can't call that agent and have them show you the house!   

__________________________________________________________________________________

 

Hi Greg,

 

That is not the case. We live in a small town, and it is quite common for an agent to be a dual agent...to represent both buyer and seller. This is perfectly acceptable as long as everyone is aware of it and has signed the necessary agreements.

 

I would not recommend doing so in this case, as it sounds as if the buyer has not had a lot of experience.

 

I used to be a broker, so I know I have a lot more experience than some. If I want to buy a property, I specifically find out who has the property listed and ask to work with that person. Who has more incentive to get the house sold than an agent who will get both sides of the commission?

 

You should have some experience to work comfortably in this situation, but it is very expedient.

 

I hope we hear back from the OP as to how things are progressing.

Message 18 of 27
Anonymous
Not applicable

Re: Should I make a bid before house is appraised?

>>>>It is possible that the listing agent and the one that showed you the house are two separate people but work for the same real estate agency.<<<<

 

That's exactly what happened.  As was said, not an ideal situation having your agent and listing agent in the same office but it is better than no agent.  Turns out, the agent was very upfront about the situation and VERY helpful after she realized I have no clue what I am doing.  She really put me at ease and walked me through the steps, receommended a good attorney in town, let me know what to expect, just an all around really good experience. 

The house I put a bid on has been on the market for just over a year and apparently has received NO other bids.  I get the immpression from my agent that she and the listing agent really just want to get it sold as they (and the seller) are tired of showing it.  I'm thinking the listing agent's advice will be "its your only offer EVER, take it".   I will check back with an update.

 

Thank you Ficoforums !!  This is an amazing place for new home buyers!!

Message 19 of 27
rockymtngrl
Frequent Contributor

Re: Should I make a bid before house is appraised?

Glad you have it all figured out and someone is working with you. Just remember though for the sellers its not as easy as "this is our only offer, take it". They have a number they have to meet as well. We don't know their situation but they could need 250k to pay off thier mortgage(s) and then 15k to pay the realtor meaning they have to get 265k or bring money to the table-and if they don't have the cash then your offer won't work for them.  Or there could be too many other variables to mention-but the point is that I think many times especially first time buyers don't realize is that the sellers have a number they have to meet as well-and its not as easy as just "take the offer". Good Luck!
Message 20 of 27
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