1st time home buyer here and we saw a house we love. Asking price is 173k, my realtor insist on offering at 200k. It's a seller's market, but really?
We recently fell in love with a house that has a good location for us. It's a flipped home and for some reason fell out of escrow the last couple of weeks and went back on the market. Our realtor who seems like a nice guy and was referred to us by our loan officer suggested that offer 200k for the house. He knows how much we were approved for, but we're not trying to push that as it's a 30 year commitment (for the most part) and that 173k includes a monthly $75 HOA fee. I told him that I am not comfortable with going more than 10k above asking price. We make the offer today.............. I'm apprehensive and I'm a bit confused. Can someone help or give me a suggestion/opinion or just a friendly reminder?
(0) | asked by: Syd Charrise Almendralo | share | 5 months ago | Report
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Doesn't make sense that the real estate agent who is representing your best interests insists on making a higher than asking price offer unless he is trying to get closing costs or some kind of concessions. Sounds like he is less than professional, and a bit kookooroo :)!
Hello Syd, unless there are multiple offers on a property, I don't see any reason to offer more than asking price...it is possible that the list price was below market value and that could trigger multiple offers on property. When making an offer, your realtor should give you the reasons why he's advising certain price, comparable homes sold recently, not to forget that property needs to appraise at that price (lender will give you the loan based on appraisal). The offer price and terms are your choice, based on the realtor's advice. I hope this helps.
27K seems steep to me. There has to be a good reason why it fell out of escrow. Just remember if the appraisal doesn't come up to your offered price then the seller doesn't have to sell it and you'll be out of your appraisal cost and inspection fee. That equate to about $850 from your pocket. Smart agent should give you comparable market analysis before you make offer above list price. The comps have to support the sale price. If not then the property will not appraise at your offered price. Best of Luck!
Right now the sellers market is on fire. IMO your realtor made a great suggestion if your purpose is to acquire the property.
How would you feel if another buyer purchased this house that you " fell in love with " and later you found out that they paid $200k?
Spring has sprung. It's a buyers market... I'm sure the house is already gone... every one of my closings went into multiple offers and above listing price.
Sometimes you have to trust the Expert in the field & follow what he/she has investigated on the subject property. Have your realtor ask the listing agent why the property fell out of escrow, was it appraisal issues? Your realtor should know the subdivision, the average sold prices and of course look out for your best interest. Best of luck.
Have you seen the comps on the property? Are there multiple offers the reason your agent wants you to go that much over asking price? If you are not comfortable you don't have to do it! It is hard to give best advice not knowing the exact situation . You should be able to speak with your agent and find out what the reason is! Hope this helps! Good luck!
answer by Syd Charrise Almendralo
Even 27k ABOVE asking price? Isn't that a bit too much?
Good morning first time buyer... Your realtor should be able to show you sold comparables for that particular subdivision proving the value for the area. Most flip properties are not priced below market, and perhaps your realtor is trying to get your offer on the table/accepted with the hopes that down the line....with appraisal, you will come in where the value should be. Have your realtor ask the listing agent why the property fell out of escrow, was it appraisal issues? Your realtor should know the subdivision, the average sold prices and of course look out for your best interest. Best of luck, it is an exciting time for you.
They price he suggested that you offer is more likely based on the experience of the market rather than where you are approved at. If you want the house follow his advice, his trying to make sure you get the home you love. How badly do you want to not get it?
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