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This weekend in Manchester NH their was a raging debate raging... Simply put... Can a listing agent submit an offer that is "TOO LOW" to the seller? Is there any case where the listing agent should not be submitting offers becuase they are too low?
Unless the seller directs the listing agent in writing to "not submit" offers under a specific amount, ALL offers submitted in writing and accompanied by the required addendums, prequailification letter and deposit, no matter what they are, need to be submitted to the seller.
Recently we have debated 'Low Ball " offers and how sellers react to them. Some offers that some may consider low ball offers may actually be what the true market value is. ARE BUYER WAGING WAR AGAINST SELLERS?
The number one rule of value is that something is only worth what someone else is willing to pay for it.
Some sellers have unexpected expectations what a value is, sometimes it is their fault and other times such as in bank owned homes. The asset manager is often one to two thousand miles away and have never seen the house other than in pictures. It is the job of the appraiser or agents they hire to complete an Appraisal or BPO to set the value on the home. Often these days the appraisals and BPO's are being assigned to those who will work for less or are even out of town. The result is the values are coming in higher than what is considered market value in that area.
As a listing agent of alot of bank owned homes i have been facing this problem quite a bit over the last year. To add to the problem most of these homes are in such bad condition that a buyer needs cash to purchase as no bank would loan money on the home. Often they are not habitable, water does not work, pipes all stolen, roof leaking, septic failed, broken windows and no flooring. It would cost more to fix to make it able to get a mortgage than the bank would recover if they spent the money on any repairs.
When a home can only be sold to cash buyers the value is lower than that of a home where all buyers could purchase. Cash buyers do not pay retail, they pay what is considered the cash value, some say wholesale, but that is not always correct as wholesale usually implies bulk sales.
The point of this blog is that a management company that works on listing bank owned homes, has stated that agents who submit offers that are too low will not receive listings any longer. As a listing agent it is my job to extensively market every property, i invite every investor, builder, developer, flipper and buyer who are on my lists, to see the home upon getting a price and encourage every one to make offers in writing. Investors seeing other investors know time is of the essence, that they should put together their best offer and submit it promptly. All offers are uploaded to the asset manager for their decision.
Most of the time we have enough offers that one can be picked as the best and the property is put under contract without days of negotiations as i already had everyone put in their highest and best offer.. In some of the homes that are of poorer condition, it takes an investor with higher resources and cash to make the needed repairs. Therefore offers are often lower. In cases like this a low offer is often a starting point that begin negotiations. With no offer, there are no negotiations whoch mean no sale.
So what do you think about submitting low offers to sellers?
If you are looking to buy or sell a home in New Hampshire, please call us first. We strive to provide the best in personal and professional service through each step of the buying and selling process.
We offer * FREE * BUYER REPRESENTANTION - ask us how we can help you buy a home here in New Hampshire. (*please contact us for details and conditions*)
ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...
If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.
If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.
Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email email@example.com. his website is www.ScottSellsNH.com.
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Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Sales, Residential Properties, Condominiums, New Construction and Investment Properties.
Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email firstname.lastname@example.org. his website is www.ScottSellsNH.com.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.