Urgent -Selling my house with inexperienced agent...help!

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Urgent -Selling my house with inexperienced agent...help!

Yadira Gutierrez
Fort Lauderdale, FL · Member since 2015 · 45 posts · 6 votes

Hello BP Community,

I gave my house listing to a relative that is a rookie.  Long story. No, cant get rid of him. He is under an experienced broker though. And I must say I have been very detailed so far; however, I am still having doubts about the whole transaction.

House was placed on the market 2 weeks ago and I have 3 offers so far. One way low (that I rejected and the lady showed up at the house to question me why I did not counter-offer, priceless!), one at listing price and one above listing price. 

However, I see other properties going higher in my  neighborhood but he wont agree to up the price of my house cause those do NOT compare or because the appraisal wont be good. He is rushing me to make a decision about an offer that I am not completely sure I understand or that I am doing it right.

I do not know if that I am getting those "good" offers because the house is priced under market value or, if I am just having luck and should jump on it right away.

I have questioned him and of course I get the script from his broker.

At this point I need a third party for guidance. No other agents would get involved at this point so I am (once again) asking for BP masters for help.

Would an experienced agent help me with some basic advice of things I should make sure he does and things I should not do?

THANKS!

Yadira

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y

If it appears that the over asking offer can close then I would take that offer before it disappears.  The things you have mentioned that make you doubt your agent actually make me think they know what they are talking about. If you are looking at properties that are not good comps, and he is concerned about the appraisal, that shows me that he has done his homework.  Getting the highest offer isnt always the best....who cares if someone offers you $25k more, but needs to finance the house, and then the house doesnt appraise and you need to lower the price to the appraisal price anyways.

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  • Jake Thomas
    Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
    10y

    After being for sale past the first week I wouldn't expect an offer over asking. Usually people only go over when they are competing with other offers. I never suggest to increase the price once the property is already listed. 

    Why didn't you accept the asking or above asking offer? 

    The other option is to have the agent expire the listing and hire someone else since you are obviously not happy. Hiring a family member just because when selling the most expensive asset you own is not always the best idea. 

    1Reply
  • Shmuel Harris
    Real Estate Agent · Brooklyn, NY · Member since 2015 · 231 posts · 66 votes
    10y
    Yadira Gutierrez If you are uncomfortable with the realtor because he is too inexperienced, maybe it is possible to sit down with the broker to be more comfortable with how your property is being handled. I believe the most important aspect in selling your home is good communication with your whole team. It is an overwhelming process to some. Before moving to another option, see if you can make it work. Good Luck! P. S. The BP community loves to be updated on how things work out. Please let us know.
    0Reply
  • Brandon Battle
    Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
    10y
    What exactly is the offer that you are having trouble understanding? What are the terms? Is it the escrow process and contingencies you are concerned about? If you could give us the address of the property or the MLS number we could look at it for ourselves to give you the best advice about what it is worth and whether or not it's a good deal.Did you rehab it to perfection or selling it as is and it needs cosmetics or rehabilitation?
    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    If it appears that the over asking offer can close then I would take that offer before it disappears.  The things you have mentioned that make you doubt your agent actually make me think they know what they are talking about. If you are looking at properties that are not good comps, and he is concerned about the appraisal, that shows me that he has done his homework.  Getting the highest offer isnt always the best....who cares if someone offers you $25k more, but needs to finance the house, and then the house doesnt appraise and you need to lower the price to the appraisal price anyways.

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  • Wes Brand
    Investor · San Francisco, CA · Member since 2016 · 314 posts · 153 votes
    10y

    You think it will appraise higher, your agent thinks lower...if what the agent is saying re. Comps makes sense go with their numbers, if you still think it's worth more (say it has parking and most comps don't or some such thing) you can always get an appraisal done yourself. Will probably run you $600-700, and won't be good for anything other than your own peace of mind knowing about what market price is (for loans, at least)

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Russell Brazil  as expeinced agents and sellers will tell you @Yadira Gutierrez  your first offers are 95% your strongest... in a hot market if the house sits for 30 to 60 days people will think there is something wrong or over priced. work with the best offer and sell it and close it.

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  • Yadira Gutierrez
    OP
    Fort Lauderdale, FL · Member since 2015 · 45 posts · 6 votes
    10y

    You guys are awesome! I thank you lots!

    House was listed for 222K. This is my primary residence. 

    First offer was for 215K; however, the listing price offer 222K showed up and I rejected the 215K offer.

    Second offer 222K was on the table, since they accepted the listing price right away it got me thinking that maybe the listing price was not right. This is a conventional loan.

    Third offer was for 227K but they wanted me to pay 3% closing costs. After my "sellers contribution" I was getting less money than the listing price offer. This is FHA.

    My agent is working very hard but he cannot buy experience, so I have been very careful because I want to help him but definitely not at the cost of a bad transaction. 

    I am not going to get an appraisal I just need a little bit a reassurance that I am not making a bad deal cause the house is under priced and I did not ask the right questions or did not do my due diligence.

    The scenarios right now are:

    1. 227K with 1.5% sellers contribution. FHA loan.

    2. 225K no sellers contribution. Conventional  loan. 

    3. New prospect coming tomorrow to see the property.

    So if anybody can do some quick comps and provide some input it would be great...

    Thanks!

    Yadira

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  • Account Closed
    Investor · Houston, TX · Member since 2014 · 35 posts · 13 votes
    10y

    If you're offering the property at 222 and turning down higher offers, you're going to wear out your buyers. You can always call for "highest and best" by...(usually 24 hours). ANd then take your options. It sounds like your not negotiating, accepting, or rejecting. I think you're at risk of messing up a good thing.

    2Reply
  • Wes Brand
    Investor · San Francisco, CA · Member since 2016 · 314 posts · 153 votes
    10y

    Why no photos of the interior? Seems the marketing on the property is a bit lacking...

    0Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    10y

    Confusing... You have 2 offers over asking price (one considering the other has sellers assist). Just take the money!

    Or is this a case of sellers remorse?

    0Reply
  • Bob CollettPro Member
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    10y

    Yadira, I am agent in ohio... If I were your agent, I would sent emails to all offers announce... Thank you for your offer. I have authorized to inform you that we have multiple offers. Please submit your best and final offer by 5 pm on Thursday.

    This strategy may cost you your deal... but if you are underpriced, you just might bump it to the right number.

    You must authorize your agent to do this.. or he is not allowed.

    Good luck

    2Reply
  • John Newhall
    Real Estate Agent · Bloomington, MN · Member since 2015 · 87 posts · 30 votes
    10y

    I also agree with calling B&H. 

    0Reply
  • Jacob Pereira
    Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
    10y

    Unless you have real concrete evidence that you under-priced your home, I'm going with the majority here and saying you should ask for highest and best and accept whichever one that is. I don't know your local market, but in my market if you only have three offers, and only one above your asking price, you've probably priced it about right, or maybe a bit high.

    I'd love to read an update on this; doing business with family and friends tends to be tricky.

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    Insist on the price change.  Talk to the broker.  Are the properties selling for more in the same condition as your property?  Price will always match condition.

    0Reply
  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    10y

    The market is telling you (via the offers you've received) your house is probably worth about $225k. If so, $222k was a perfect price point to attract multiple offers.

    Personally, I'd jump on the conventional offer, above asking, with no concessions. FHA financing can come with more red tape, tighter appraisal guidelines, and potential delays.

    Calling for highest and best could drive up the price, but you'll still be limited by the appraisal (which will be much less of a factor for your conventional buyer who's making a significant down payment and isn't asking you to cover closing costs).

    That being said, your real estate agent should be willing to explain what is different about the higher comps and put your mind at ease with regards to value. In fact, this should have been done when you set the initial asking price.

    Good luck!

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    If it is a normal market, and not a hot....I would not call for highest and best. I only do that in hot parts of my market where I get 10 plus offers per property, and even then I usually don't since they already include escalations.

    If you call for highest and best you run the risk of people pulling their offers. What I typically do if I only have 2 or 3 offers. I call the agent/s who are not in winning position and tell them they are not going to win and ask if they want to up their offer or not. I do absolutely nothing to scare off the offer that is in the current winning position.

    However these offers are very close...I likely would take the one that is most likely to close before it disappears. Don't be penny wise and dollar foolish.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    What was the offer at 215k? If it's cash with no contingencies for surety of close versus a financed deal it might have been the better offer.

    Anytime you have a loan involved nothing is for sure.

    How much of a deposit are the other buyers putting down and what are the contingencies in place for the contract? At some point does all or some of the EM money become non-refundable as contingencies go away?

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  • Yadira Gutierrez
    OP
    Fort Lauderdale, FL · Member since 2015 · 45 posts · 6 votes
    10y

    Hello BP Community!

    Clarification - The main purpose of this posting was to try to find out if the house was priced right in the first place. I did talk to the agent, he did explain to me to reasoning behind that price. However, when I started looking at some other properties in the area I started to wonder if he priced the house right. The fact that he is inexperienced made me wonder that maybe he was not doing the Comps right. This is his first listing, I also wondered if  he is pushing me to a quick sale.  

    Since I cannot make that analysis by myself that's when the BP community comes to the rescue.

    As of today, all  written offers expired. He has been verbally negotiating and counter-offering. 

    The 215k is out of the scene. It was a loan with very little down payment, and the lady had the nerves to knock on my door (not in the friendliest mood) to question me about her offer. 

    The 227k offered to go even higher to 233K in order to give me the 227k and still not use money their for closing costs. This is a family with only one person working. It seems that their financial person told  them that they could not go that high. So they came back with a verbal offer of 227K and the 1.5 sellers contribution. Too many flags, I think we are in a limbo with them.

    The 222k conventional offered 225K but wanted a response last night. I verbally agreed to that offer late last night. I haven't heard from my agent yet.

    If anybody still want to play comps and tell me your thoughts not based on the offers I have had but on the market, that would be great. Lets pretend I am bringing my house to you for the first time...at this point I am curious,  and even more important I need to know how to do it in the future so I don't get insecure again since I am planning to keep investing and selling. 

    I will keep you posted as I go.

    I will share the experience about dealing with rookie family member once the transaction is completed.

    Looking forward to hear from you...

    Yadira

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    The only person who can really properly comp the property is an agent in your area. Sure there of those of us here that can make a good guess, but real Estate is entirely hyper local. None of may know that the east side of main street might be entirely priced different than the west side. We won't know the subtleties that a house must have x, you and z, or what the market values x, you or z at. Square footage could have a huge cost variance or no cost variance. A driveway could have a huge cost variance or none etc. The only people who will have that knowledge is likely an agent in your market....and if there is one on here they possibly may not interject their opinion as it could be construed as a violation of the NAR code of ethics since you are already represented by an agent.

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  • Account Closed
    Investor · Houston, TX · Member since 2014 · 35 posts · 13 votes
    10y

    Thank god for realtors! I would lean on a great local realtor for confidence in local real estate decisions. THat's what I do. And I invest as a business. Sounds like your area is pretty hot. That's good news! No matter what you do, you'll keep finding offers. They won't necessarily get better though.

    0Reply
  • Yadira Gutierrez
    OP
    Fort Lauderdale, FL · Member since 2015 · 45 posts · 6 votes
    10y

    Hello BP Community,

    Update:

    Thanks to all of you I made a decision, time will tell if it was the right one or if I lost money. In any case, things are moving forward to what it looks like is a solid closing in July. Woohoo!

    I settled for the conventional 225K with no sellers contribution. Once all the math was done this is the one that would get me the most at the end.

    Now to the next step : What am I going to do with the money? I definitely want to keep investing. And will be homeless in July!

    Suggestions? Advice? Ideas? Dos? Donts?

    Cant wait to hear from all of you!

    Yadira

    0Reply
  • Scott Weaner
    Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
    10y

    Find a nice small multifamily to buy and live in 1 of the units.

    0Reply
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