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Liz and Bill's recent featured post about working with a Buyer's agent reminded me of a transaction I had a few years ago where I was the listing agent for a property and was presented with a contract by an agent who clearly was working in an area with which he was unfamiliar.
While he had at least been in the property, he had no idea about the neighborhood, property market values or the differences in the homes, which had been constructed by multiple builders. which is not uncommon in the ALEXANDRIA VA REAL ESTATE market.
We countered back and forth a couple of times before the Buyer's agent finally just asked me, "what is it going to take for my clients to get this home?"
Hmmmmm.....let's see...how should I answer that?
His clients' offer, while not full list price, was already at a number my clients found acceptable, yet that one simple question changed the game.
After consulting with my clients, I lobbed back a number that was pushing against the limits of where I thought the property would appraise.
His clients grabbed it, hook, line and sinker. My clients were thrilled. A month later, we go to closing, the Buyers are happy with their new home and the nice rebate they received by using that particular agent and the Buyer's agent was happy to get a nice paycheck.
Fast forward to 2012. The Buyers were being transferred out of the area and the house went back on the market.
It went under contract fairly quickly, but failed to appraise at their list price, which I had (silently) predicted. They had no choice but to proceed as they needed to sell, but they had to bring to the table several thousand dollars. They ended up selling for less than what they paid; in fact, they sold for about what they should have paid several years ago.
There was a price to be paid for using an agent who was unfamiliar with the market in which they were buying. It just took them a few years to realize it.
So, to Liz and Bill's excellent point about making sure your buyer's agent fully represents your best interests as a buyer, I would add make sure your buyer's agent can represent to you his or her competence in the area in which you want to buy and in the price range and type of housing you want to buy.
While everyone loves a bargain, they are not always a good value. In the long run, those bargains can carry a pretty hefty price tag.
Home Sellers: Contact me for a FREE MARKET ANALYSIS to find out the true market value of your home.
Home Buyers: Think this may be the right time for you to buy your first home. step up or downsize? Give me a call or drop me a line for the latest information on getting qualified and finding the home of your dreams.
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.