We are not certain our agent is giving us good information. We found out from other sources, that the property we're looking at sold for half the current listing price, less than a year ago. They didn't put the property to use and didn't manage to rent it out, so now they're selling.. for double what they purchased 9 months ago. Here were my and my agent's texts. There's no seller's disclosure. We can't even go upstairs to see the apartment above retail space because access was blocked off decades ago. She kept asking if I wanted to make an offer, didn't give me comps until I asked for them. She isn't asking them questions on our behalf, just telling me "no" basically without inquiring with seller's...
My agent: "Did you want to make an offer?"
Me: "Good afternoon! We noticed the property was purchased for (X)k, less than a year ago. We are willing to offer the same amount, unless any improvements can be disclosed to substantiate a price increase, up to the current listing price of double."
My agent: "It does not matter what it was purchased for a year ago. If someone got a good deal on a property cleaned it out and is selling it for market value than what they purchased it for a year ago isn't relevant, as long as it appraises out."
her response seemed inaccurate and unhelpful to me. I can't imagine a world in which a prior selling price, especially so recent, doesn't matter. Your thoughts?
For reference, my agent is not the seller's agent. But her demeanor has not been very kind or helpful to us, it does not feel like she is representing us as her clients.
I agree that the prior selling price is often irrelevant. There are a bunch of different reasons that someone might have been able to get a good deal on a property, and that's not necessarily indicative of the current market value. I will pretty regularly help investors purchase properties that have instant equity. 50% is quite a bit, but it's not beyond the realm of possibility. However, I do think your agent should provide you comps to help you understand if the asking price is in line with today's market, and to help you formulate an offer price.
@Yana Feldman Simply put, fire her. She is getting paid to represent you and she is not fulfilling her basic fiduciary duties as your representative. Now, I am strictly commercial. In our world, there are no seller disclosures and we function on the concept of buyer beware. The previous purchase price is only irrelevant if you can comp it out. There are a number of problems in this situation. Firstly, it sounds like this property is completely vacant and need repair. If that is the case you are going to have a difficult time financing it and your down money will be at least 25-30%. Secondly, you need better representation so you can acquire the info you need to make an informed decision. If you do decide to make an offer make it contingent upon appraisal and inspection. Best Wishes!
Can't thank you guys enough for good solid professional advice. Many thanks.