Glendale, CA · Member since 2018 · 44 posts · 18 votes
So, I am entering a new market, and put together a team on the ground...I then took a trip out there, and my real estate agent took me to see houses. I thought she was great, organized, and well prepared to show me properties, and we ended up going into contract on a property.
I am now trying to buy more properties, and the problem I am having is that this agent seems to be uncomfortable recommending actual prices to me. She will run comps, and then when I ask for advice, she basically tells me she doesn't ever give price advice as houses are worth whatever someone is willing to pay.
I feel like the point of an agent is to offer this guidance, and have never run into this with any other agent I have worked with. I am happy with the rest of the process thus far...but curious of others thoughts? If I decide to go with a different agent, do I need to tell her? Is it bad to work with multiple agents at the same time?
Is she an actual BUYER agent? If not, her job is to get the most money for the seller.
Is she educating you on the local market?
She makes her money by commission, so the more it sells for...
Yeah - that's weird your agent wouldn't tell you - she knows you're not from the area and she's obviously knowledgeable on what properties should go for.
You can either look at sold comps and make offers based on those or find an agent willing to offer you pricing guidance on making an offer. Perhaps find a realtor who is an investor as well and when having an initial talk make certain he/she is willing to provide you with the information you need.
@Wayne Brooks I agree that the decision is ultimately mine, but I am paying a real estate agent to assist with the process, and basically be able to tell me what houses are actually going for in the market...all of my previous real estate agents have been able to advise if my offers were what they (based on in-market experience) thought would be competitive.
Is she an actual BUYER agent? If not, her job is to get the most money for the seller.
Is she educating you on the local market?
She makes her money by commission, so the more it sells for...
@Liz Cole Yes, she is a buyers agent, and I get that she makes money on commission, so thinking she would want to give me advice to offer more money. We have missed out on the last 2 places because our offers were beat out, so if she had been looking to make commission, she would have advised me to offer more. Instead she offered no advice, so ended up making no commission.
It's possible that your agent's broker doesn't allow her to be precise on pricing strategies. Just like recommending 3 inspectors instead of 1, or choices for home warranty, Realtors often times try to avoid liability by being vague and allowing you to make the decision. That way, if the inspector misses something HUGE, you can't sue the Realtor for recommending them.
However, there is also a line of thinking (that I personally subscribe to), that bringing those single decisions (1 inspector, 1 title company, 1 insurance agent, etc) to the table is part of the fiduciary duty that Realtors have to their clients. I have working history with these vendors, so I should be the one that can vouch for any one of them as my preference based on that working history. Now, am I going to force a client to use a member of my team? Of course not! But if they are looking to me to offer guidance based on my experience, I am going to give it to them.
The price strategy is yet another one of those items. I personally would provide comps and give the client a range. For example, here are the comps that I feel would support an offer from $192K-$195K. The fact is, there is always going to be a range of flexibility in any offer. In hot markets, it would be a range upward. If the property has been on the market for months, it would be a range significantly lower than list, but still within a $3-5K range. Much of how close a client wants to get to list depends on how invested they are in the property. I suggest to my clients who have found the EXACT property they love and want, "go ALL in", because if we get outbid over $2K, you are going to have regrets. On the other hand, I may suggest to a client with many options to choose from to take a little more risk, as the potential loss wouldn't be a big deal, but a win with a riskier spread would be all the more sweet.
Ultimately, it is the CLIENT's decision as to what they want to offer. However, I don't think it's a bad thing to offer my opinion on their pricing strategy. I take it as a part of my fiduciary duty.
What she is doing is EXACTLY what she's supposed to do. It is not her responsibility to tell you what to do, but rather give the information for you to make the most educated decision. She is absolutely right, a property is only worth what someone is willing to pay for it at the same time a seller is willing to sell it for. The comps and appraisals are simply OPINIONS based on facts. That's why you see properties stay on the market for long periods of time, because the facts indicate the property is worth $200k, but the seller is asking $250k. However, if someone comes along and falls in love with the home and is willing to pay $250k for the house, surprise, the house is worth $250k. If she has brought to you factual evidence that a property is worth between a certain range, use that evidence to form your offer. You're asking your agent to act outside the scope of their job that opens them up to a lot of liability, that's why she's acting the way she is. You have a good agent, stay with her.
@Cara Lonsdale - I think your way of thinking is a lot more along the lines of what I have experienced in the past
@Tom Parris - I never thought she was doing anything wrong, and have been happy with the service thus far, I think I am just more used to a bit more direction, but I appreciate your feedback, and totally hear what you are saying.
@Grant D. I agree with others that she's probably trying to avoid liability by giving you an exact price point to offer. What I do with my clients is offer them a range of value based on comps and then I tell them the price I think it will go for. I then tell them to offer whatever they are comfortable with and I position them the best I can to the sellers. This is the best you can do and it ultimately informs the buyer but allows them to make their own decision. It sounds like you do have a good agent, but maybe try to communicate with her that you'd like her professional opinion on a range she thinks it will sell for and you will write your offer with that information in mind, but ultimately make your own decision.