Ridiculous offer on house
Mar 12th 2009, 5:29 pm
#106
In limbo!
Joined: Feb 2009
Posts: 329
Re: Ridiculous offer on house
um. yeah.
if an estate agent is going to make 2% off you, he will make 4000 off a 200K house or 3000 off a 150K house.
so he can make 4000 by working hard, negotiating with lots of buyers, showing them round, cajoling, harassing and driving himself mad OR he can make 3000 by sitting on his arris and punting out your pad for a tempting 25% off.
4000 for a weeks work or 3000 for a days work?
if an estate agent is going to make 2% off you, he will make 4000 off a 200K house or 3000 off a 150K house.
so he can make 4000 by working hard, negotiating with lots of buyers, showing them round, cajoling, harassing and driving himself mad OR he can make 3000 by sitting on his arris and punting out your pad for a tempting 25% off.
4000 for a weeks work or 3000 for a days work?
I can only speak for our estate agents and I have to say they have worked bl**dy hard for their 1.75%!
When we first got estate agents round they were the only ones in my opinion that told it as it was - they said if you start real and keep your expectations real in what is a buyers market you will sell. Whatever figure you think you will get, you will get less and if that falls below what your mortgage is then don't bother selling right now, you may as well keep hold of the property.
They said from the very beginning it was a numbers game - getting as many people through the front door in the first place but that the only thing that would sell the house was the price, the only houses that are selling AROUND HERE are those that are realistically priced, the market is flooded with properties for sale and if you want to sell it doesn't matter how nice your house is right now, generally it is the lowest priced houses that are selling first. Obviously there are exceptions to this rule.
They made a deal with us, if were serious about selling then we had to be realistic in our expectations on price and if we were serious about that then they would get people through our door - which they did, and its a numbers game - the more they get through the more chance we had of getting an offer.
Furthermore our estate agents also sold a buyers house for them without fee in order to secure the purchase on our house. As it turns out their buyer dropped out so it all fell flat but they are pulling out all the stops in order to sell houses right now, even with a very realistic/low price!
Mar 12th 2009, 6:11 pm
#108
Banned
Joined: Dec 2005
Location: In Limbo
Posts: 15,706
Re: Ridiculous offer on house
Jealous? I would be if it wasnt in Kamloops
Mar 12th 2009, 6:24 pm
#111
Banned
Joined: Mar 2008
Location: Winnipeg
Posts: 1,252
Re: Ridiculous offer on house
I don't think 'nicer' necessarily means an easier sell. If you're suggesting there's a correlation between nicer and pricier, there's a price point at which there's a more limited market, so finding a buyer is harder. I shudder to think what my realtor's overhead has been for the 12mths he's been representing my property. The longer the sales process takes, the more deserving he'll be of a gradually diminishing return.
The cheaper the house the less common the house is plus the fact it's also less common to get people buying into a poorer area/house.
On the flip side the more expensive the house the rarer it will be to find someone who can afford the more expensive area/house.
This obviously changes per market and whether it's a buyer/sellers market but in terms of our natural selection graph (applies to virtually anything) it should be easier to get rid of the most average property...
Mar 13th 2009, 4:36 am
#112
little snowy owl
Joined: Nov 2004
Posts: 6,921
Re: Ridiculous offer on house
um. yeah.
if an estate agent is going to make 2% off you, he will make 4000 off a 200K house or 3000 off a 150K house.
so he can make 4000 by working hard, negotiating with lots of buyers, showing them round, cajoling, harassing and driving himself mad OR he can make 3000 by sitting on his arris and punting out your pad for a tempting 25% off.
4000 for a weeks work or 3000 for a days work?
if an estate agent is going to make 2% off you, he will make 4000 off a 200K house or 3000 off a 150K house.
so he can make 4000 by working hard, negotiating with lots of buyers, showing them round, cajoling, harassing and driving himself mad OR he can make 3000 by sitting on his arris and punting out your pad for a tempting 25% off.
4000 for a weeks work or 3000 for a days work?
I'd already dropped the asking price quite a lot after starting too high (bad advice from said estate agents and others). Then we had buyers who agreed a price, lower than the (current) asking price and THEN kept coming up with reasons to reduce it still further, until I lost my patience with them and with the agent.
It was only when I pulled out of THAT sale, and threatened to sack the guy, that the stoopid agent came up with this other couple who were desperate to buy our house, were prepared to offer what we were asking (if I threw in my very old car), and were wishing to move in straight away, having sold their house.
These new people had been making enquiries about the house for some time, it transpired ..... just to clarify. And this was in the UK, if that makes it any clearer. I never felt that the agent had our best interests at heart, but if he had just been a bit more in-the-loop he'd have realised that here was a sale waiting to happen, with no chain, and at a higher price than he was currently negotiating. Dim-witted and lazy, both.
Mar 13th 2009, 12:01 pm
#113
Forum Regular
Joined: Feb 2009
Posts: 294
Re: Ridiculous offer on house
Mar 15th 2009, 5:36 pm
#115
Joined: Feb 2006
Location: Red Deer, Alberta
Posts: 10,612
Re: Ridiculous offer on house
I don't think 'nicer' necessarily means an easier sell. If you're suggesting there's a correlation between nicer and pricier, there's a price point at which there's a more limited market, so finding a buyer is harder. I shudder to think what my realtor's overhead has been for the 12mths he's been representing my property. The longer the sales process takes, the more deserving he'll be of a gradually diminishing return.
