THIS is why you should sell through a good real estate agent!

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THIS is why you should sell through a good real estate agent!

Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes

I just sold a SFR rental property for another BP'er who lives out of state - we just went on record at the Registry of Deeds a few minutes ago.

I knew that the market was very hot in Quincy, MA where the house was located, so I set the listing up specifically to orchestrate a bidding war, using a combination of timing and strategy.

I got about 65 people through a 2-hour open house.  It looked like the Marines storming the beaches at Normandy (minus the blood and death, of course), landing SEVEN offers that day.

It was a 1031 exchange for my client and we had a lot of static getting the tenant out, but because I retained  an attorney as my broker of record, all of it was handled with relative ease and at a low cost for my

Final tally:  $59,600.00 over asking price with the high bidder waiving his home inspection contingency!

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Chris Isaacson
Real Estate Agent · Rocklin, CA · Member since 2016 · 79 posts · 50 votes
9y

Not to be petty but the Marines didn't storm the beaches at Normandy it was the US Army and allied forces.

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  • Brian Vaughan
    Real Estate Consultant · Texas Hill Country · Member since 2017 · 56 posts · 58 votes
    9y

     So the buyer is automatically a dumb a**?    What if he/she has an aging parent who happens to live next door to the home for sale, and would pay anything to live next door to their parent?  Or a thousand other scenarios.  

    Are they all a "dumb a**"?  

    1Reply
  • Brian Pulaski
    Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    @Brian Vaughan when I had an appraisal issue, the information I got from realtors was that a good realtor would be at the appraisal with comparable supporting the sale price. I never use a realtor, so I am not sure what is normal where I am from, however this was what realtors told me would happen.

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  • Charlie MacPherson
    OP
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    @Brian Pulaski @Brian Vaughan  In the case that started off this thread, I was very concerned about the house appraising, even though I knew that the buyer was coming in with a very large down payment.

    I did meet the appraiser at the house and handed him my "optimistic" comps.

    I view that as part of my normal service to the seller.  I think you would find that most good agents would do the same, especially if there's any doubt as to the property meeting the appraisal price.

    0Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Charlie MacPherson I just read through all of this - can you clarify what you meant in regards to the "timing"? What did you do in terms of "timing" that you feel made this a more successful transaction? 

    0Reply
  • Tyler Mullen
    Investor · Kirkland, WA · Member since 2017 · 310 posts · 271 votes
    9y

    Wow @Ed B.

    What a buyer pays, once closed, IS market value.  You might disagree with their opinion of that value, which is why you don't buy it.

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  • Charlie MacPherson
    OP
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    @Filipe Pereira  To some extent that's my secret sauce, but suffice it to say that I set things up in order to generate a bidding war.

    0Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Well, now it sounds more like a bragging session rather than a value add play. You can't come on here and say "HEY LOOK AT ME! THIS IS WHAT I DID!" and not share how you did it... come on, now!

    ;)

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  • Robert Hudson
    Crossville, TN · Member since 2017 · 121 posts · 168 votes
    9y

    @Filipe PereiraI have come to the conclusion that there are many blowhards on here that are only here for self promotion. Often, they are very quick to defend their reputation. When you search a person's name, eventually it will show up that they have posted on Bigger Pockets. You then click on that link and you will soon see how successful and brilliant they are. Cheap advertising.

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  • Brian Vaughan
    Real Estate Consultant · Texas Hill Country · Member since 2017 · 56 posts · 58 votes
    9y

    @Charlie MacPherson   I can tell you from long-time, first hand experience that an appraiser receiving comps is very rare, Charlie.    There are multiple reasons that they don't, but most simply don't.    Again, I can only speak for the market I am in.     

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  • Charlie MacPherson
    OP
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    @Brian Vaughan It may vary by market then.  

    I normally wouldn't give an appraiser comps if there was no real risk of the property not appraising.  In the case of the property that started this thread, I was concerned enough that I did it proactively.

    The other time I've done it recently was with a seller I represented who had a VA buyer. The appraisal came in VERY low and I had the comps to prove it.

    When a VA appraisal comes in low, the appraiser can trigger the Tidewater Rule (aka Reconsideration of Value or ROV), which gives all parties concerned an opportunity to dispute the appraisal.

    The dispute must be based on facts, like incomplete or inaccurate data contained in the appraisal and comps that support the desired price.

    I was recently able to save two transactions totaling over $800K in sales by getting a VA appraisal raised by $15,000.

    I've been told by lenders that these efforts are not normally successful with a VA appraisal.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    Nobody forced the buyer to pay over asking price, etc. I see lots of properties listed well under market locally, and then buyers go nuts. Paying an "insane" price is the buyers option. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Charlie MacPherson  this is too funny those that would call this a scam... that person is probably the same that try's to buy properties for far less than they are worth and then would high five his friends on what a great deal he just did for himself and screwed the poor seller... LOL you can look at it both ways.

    we are in a frenzy market in some areas and this is not some low life wholesaler telling a seller that their home that is worth 100k is only worth 50k and hoping to make a big score.. the buyer is represented.. the buyer has means and if they want to bid over ask well that is their perogative.. out our way there are disclosures that state hey you bid over ask you understand that .

    like to see the wholesalers get a dislclosure that says hey seller you sold for 50% less than market ..

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