All Forum Posts by: Irene Nash

The market works like an efficient machine, homes tend to sell at their current market value as long as they have appropriate marketing and exposure.

The market sets the price through how buyers respond to the home at the list price. This means that sellers with homes that are priced in the correct range don't have to accept low-ball offers, the market will provide a buyer willing to pay in that price range.

On the other hand, if a home is significantly overpriced then the correct offer is a 'low-ball offer', meaning an offer closer to actual market value. 

@LaToya Faith Happy to help, glad things are working out and congrats on your first deal!

Hi @LaToya Faith, well it sounds to me like you're asking the right questions and I think it's great you're looking into things rather than just assuming things will be OK just because the lender was recommended by your broker. 

So basically, it sounds as though the lender had a verbal agreement with the buyer that the lender would issue some kind of credit at closing that would be applied to the buyer's closing costs - and then the fee estimate showed up without a credit included, is that correct?

There might be some legitimate reason why that happened (a lender hopefully will chime in on this thread to provide insight), however if so, the lender should be able to just explain to your and your client why that is.

What I would really want to know would be a) what was the original agreement between the buyer and the lender, and b) why is it not reflected in the fee estimate? You can ask those questions in a really cordial way without burning any bridges (in the event that the lender has a good reason for not showing the credit). If you do that and the lender gets huffy, that would be a red flag.

I'm sure the lender wants the deal to close and to stay in good standing with your broker, so if there isn't a good explanation for what you saw on the fee estimate I'm guessing they would modify things if the buyer pressed the issue. But there might also be a good reason for it that they can explain.

Some other things that might apply to your deal as you head towards closing:

- Typically there's some kind of review of the preliminary title report (to show any encroachments, liens on the property that will be paid off by escrow at closing, any covenants/codes/restrictions that are recorded on the property, etc.) I always read title, but since we're not experts in title I always tell my clients the best way for them to do their review is to call the title company and ask a rep to go over it on the phone with them to look for any red flags - that way they're putting the review in the hands of an expert.

- Your contract probably has deadlines for various things for the buyer and seller (inspection, applying for financing, etc.) - it's a good idea to go through the contract and make a Timeline Worksheet that you can provide to your client so you are both on the same page. Then track it so they don't miss any deadlines, I don't expect my clients to keep track of when all the deadlines are, and it's super important seeing as if the buyer misses a deadline that can put them 'in default' and their earnest money would be at risk.

I'd be curious to hear back from you as to what you find out regarding the financing. Good luck!

Hi LaToya, why is the deal in danger? Any details (without breaking confidentiality, obviously) would make it much easier for people to provide advice.

Hi @Matt Mulvihill, 

I was curious how people would respond on here since this is a growing topic. ESAs appear to be protected by the Fair Housing Act in much the same way that service animals are. Unfortunately there appears to be a lot of abuse of the ESA category out there, seeing as you can basically get an ESA certificate for your pet by just paying a fee online.

I really don't know how the law handles ESAs in terms of real estate showings, I'm sorry. (What if the seller is dangerously allergic to dogs? What if there's a resident dog in the home? What if the ESA bites the owner who happens to be home? What if there's someone at the house who is simply terrified of dogs and thinks they have a right to feel safe in their own home?) I don't see why it would be the same as a landlord/rental situation, it's not.

I have clients who take an ESA with them to showings but they are super nice people who LEAVE THE DOG IN THE CAR and would never think of asking to bring it in, especially if it might possibly pee on the floors. 

I won't quote what my husband said when I told him about your question, but the long and short of it is that he and I agree we would seriously consider dumping the client. They're not being fair to the sellers or to you - and they are, even if they're not saying it, leaving you at threat of a lawsuit by making it clear they expect to take the ESA into homes you're showing, putting you at risk either of the seller's wrath or of a discrimination lawsuit filed by them, the buyers.

So animal question aside, the actual question is what kind of people you want to be working with. I know that can be a difficult question when every deal counts and we've put a lot of time into showings. 

I would try to really find out about where the law stands on ESAs and home showings so that you don't inadvertently set yourself up for a lawsuit, and then without necessarily mentioning that, talk to them about the fact that you have a duty to act in a professional manner and not do anything that harms the seller's property and with their particular dog that appears to not be possible - so it's not about ESA, it's about a dog that pees in the house. Also ask your designated broker about this, seeing as potentially your brokerage is liable for anything you say/do regarding this issue.

Good luck and your pup is adorable, by the way. :)

Hi Nathan,

Thanks for your question, speaking from a real estate agent's perspective it's greatly appreciated. :) What general price range do you expect to be picking properties up for, and in comparison, what would you say is the general price point of a standard first-time buyer home in your area? Just wondering what the price difference would be, i.e. would it be likely to make an agent feel like it was a ton of work for a significantly smaller paycheck.

In western Washington state the buyer agent commission is typically around 3% (bonuses are not typical here).

Hi @Marc Roberson,

Very helpful question you raised, seeing as there's so much incentive to work with all prospective clients and disregard red flags. (And of course, sometimes we misinterpret red flags one way or the other and it ends up being a learning experience.)

I personally would be making a quick shuffle towards the exit. The comment about local agents sending him MLS data when you know he's way overpriced indicates that a) he is sure he's right and doesn't actually want your input (even if he says or even thinks he does), and b) he's getting poor counsel from other agents regarding how much expertise will be helpful to him - unless he has already spent years and years showing houses to buyers, hearing why those buyers will or won't buy the house, and analyzing MLS data to see why properties did or did not sell, in which case he has a good background.

The FB questions verge on the odd side - I might check out a prospective tenant's or contractor's social media pages seeing as that's someone whose trustworthiness is going to directly affect my life, but the questions he asked about it sound like they're meant to tell you how smart he is (aka, how much he actually does not need you... to list a former FSBO... which is significantly overpriced... :)

Good luck, would be curious to hear what you decide.

You've probably decided on what to do by now, but IMO it's fair to pay her for the value you think she brought and the time she spent. It sounds like she worked hard for you and taught you a lot, and you'd like to work with her in the future - all good reasons to make sure she gets paid. (And if it were me I'd think $500 was a really bad return on my time and expertise.) 

Thumbs up to you for apparently leaning towards paying her even though I'm sure you'll get people telling you you're nuts for paying a commission on a FSBO if you do, but really as you said the house is a great deal and if it had been listed it probably would have been higher by the amounts of both the listing agent and buying agent commission sides - plus the seller might have been represented by a listing agent who counseled him on pricing and didn't put it on the market as a 'phenomenal deal'.

Some negotiating books I've read are all about squeezing the last dime out of people no matter what (it doesn't sound like you're like that, so nothing implied :) but one of the things I really like about old-time motivational/business success speaker guy Jim Rohn is that he believes it's always OK to pay people what they're worth, regardless of circumstances. Just my two cents, good luck with your project.

Hi @Jonathan Greene,

Do you do a consultation with buyers before working with them? For the last 18 years I've been doing this with every single buyer (even people who were strongly referred and already are sure they're going to work with me), I find it super helpful in terms of making sure they understand the information they need to know in order to make good decisions as a buyer (regardless of whether they end up working with me or not), and in the course of doing the consultation they understand a lot more about the expertise I'm bringing to the table. 

So by the end of it I know they have the knowledge to be realistic about pricing, what to look for and not look for in a home, what to expect of me, how to evaluate financing options and handle inspection results, the procedure we'll use to determine the best offer price, etc., and also they are far more likely to respect my opinion as a result of the info I've shared with them. And if during that time we've figured out we're not the best match to work together, then it's a ton of time saved. 

I'm not saying this is the only answer for every agent, but for me it's crucial and if I didn't do one I would struggle to get enthused about working with buyers. I totally understand the frustration of being under-valued by people who think that buying a house is as simple as shopping for a plane ticket or a car, but I think consultations eliminate this (or else eliminate the prospect), and even newer agents can have good success by taking the time to do a consultation with every buyer. In my experience the effort pays off enormously and it's win-win for everyone.

This sounds like a total waste of your time, I'm sorry. At best someone who has legitimate issues but doesn't know how to respond to a text promptly enough to not waste your day, or worse, someone who for some reason is trying to take up your time. If he needs to see it again with his wife then he doesn't know he wants to offer full price - that would be the point of seeing it again with his wife.

I understand you don't want to lose a potential sale but I personally would not keep this client unless there were some amazing explanation (i.e. emergency last-minute surgery, etc.). At the very least I recommend no longer communicating by text and insisting on phone calls, you'll be able to tell a lot more by voice and if he won't talk by phone what kind of client will he be to work with?

But expect to write this one off, IMO you'd be totally reasonable to tell him you wish him the best but you don't feel you're the agent who's best able to help him at this time.

Then go and do something fun and/or something that will help generate a new client or increase your professional knowledge, etc. It will pay off in the long run. :)