Your seller may be very nice, but it isn't my job to make him happy.

By
Real Estate Agent with Keller Williams Realty - Lakeside Market Center


I wrote a blog post earlier about appraisals, and what we as buyers agents can do to help our buyer clients to understand current market value and to avoid appraisal issues.

One of the comments I recieved said something like "You may not make the sellers happy..." 

I'm a nice person.  I like to think that I'm an easy agent to co-op with, and that I do perform my duties with care and diligence.  My brokers have never received a complaint about me, nor do I ever expect them to. However, being nice and co-operating with the sellers agents doesn't mean that I won't do my job to the best of my ability for my client - the buyers.

My fiduciary responsibility as a buyers agent is to my buyers.  When they find a home they wish to purchase my responsibility kicks in to high gear.  I will analyze the current market for them and present them with all of the facts that I have on hand.  They will then be able to make an educated decision about the price to offer for the home. I will then take their offer to purchase, along with my data and present it to the sellers. 

Not long ago I heard these words from a sellers agent after my buyers offer was presented to them: "My seller is a nice man.  He's worked hard, and his home is in good shape.  He really deserves a better offer and isn't happy with this one."

My reply?  "I'm a nice lady.  I work hard.  My home is in nice shape.  I deserve good things to happen to me. But my home is still only work XXX and it wouldn't appraise for more than XXX, and I surely wouldn't expect a  buyer to pay more than XXX."

               My buyer didn't overpay for that home, and we moved on to find them another home.

Listing agents need to keep their sellers in the loop.  Sellers need to know current market values.  They need to understand the danger of overpricing their home, and have realistic expectations of a sales price.  All sellers  deserve this information from their agents on a regular basis - not just the nice sellers :-)


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Re-Blogged 1 time:

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  1. Oikos Realty 01/26/2010 03:06 AM
Topic:
Home Buying
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Tags:
buyers agency in macomb county mi

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Rainer
261,429
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

What always amazed me is that sometimes when an appraisal comes in short of the sales price I have the selling broker busting on me along with the buyer..??

Quick story about contracts....

about 2 years ago I had an order to do a sale in an area where values were falling.  The contract showed a sale price of around $395K.  The subject was listed for sale at $410K.  Did a quick search and found the subject had an expired listing (exp was a week before the new listing) with a final sale price of $365K.  Hmmmm....called the agent from the expired listing and started talking about the dwelling.  He was just as befuddled as I was saying that something is going on.  Read through the contract, added up the down payment, the loan amount and the sellers concession...hmmm...still missing about $35K.... Show up to the house and do the report.  Comes in about $345K...

Send the report in and you know what hit the fan...had to deal with 10 sales thrown at me...Funny thing, I looked at all of them....none where similar (surprise??).

About 3 weeks later they send me more...I take a look (UGH).  They show me 2 that I missed.  I look at the MLS report and hmmm, how could I have missed them?  I started to question myself on them and for S&G I jump to the public records for each...Wait a minite...Public Record says that they closed about 9 moths ago...I double checked on a second Data Source...shows title transfers 9 months ago...yet the MLS listing date says a month ago.  Called another appraiser asked him to look at the records without telling him about the other issues...he comes up with the same info...I tell him to check the listings...same result...

Anyway...I like the having of the contracts as they add to the diligence of the appraiser and in the end the report.

Sorry for the long winded comment..

 

Jan 26, 2010 01:25 PM #37
Rainmaker
346,007
Jenny Kotulak
RE/MAX Real Estate Centre Inc., Brokerage - Oakville, ON
Broker - Oakville Ontario Real Estate

Hi Kris - I just came back to congratulate you on having this post and your profile featured in the AR daily newsletter today.  Keep up the great work. :)

Jan 26, 2010 02:54 PM #38
Rainmaker
432,062
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

I always convery to buyers- I won't take a listing that is over priced...  that does notmean other agents won't... a list price is a guide- not a price tag...  And if I can't validate the list price- then clearly it is over priced.  Always weigh the good with the bad...

Jan 26, 2010 03:02 PM #39
Rainmaker
153,944
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

Again, the Agent got emotionally involved in the transaction!  What would be said if the Seller was a nasty person?

Jan 27, 2010 03:46 AM #40
Rainer
261,429
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

Amy said...

We can even now barely give appraisers comps. 

I am not sure where you get that from, or what kind of appraisers you are dealing with.  Wheever I set up an appointment with a broker, I have no propblem with them showing me comps.  You never know, they may have something that I missed...

Jan 27, 2010 11:18 AM #41
Rainmaker
1,538,011
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Well said. In this market, I'm sure there are an awful lot of nice people who aren't at all happy about the value of their homes today. But that isn't your fault.

Jan 27, 2010 05:45 PM #42
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Sally,   I wouldn't take an overpriced listing either.  In my opinion, when you do so you are giving approval to the seller for the listing price, whether you tell them it's overpriced or not. 

Amy,   That's exactly what I do.  The buyers want to see the comps before they write their offer.  And in cases where it is grossly overpriced (as in your case above) I am sure the seller will want to know why the offer is much lower.  Giving them the information (when the listing agent didn't) provides clarity.  Glad your buyers got the house!

Gary,  Ouch!  I bet that shocked you.  You did the right thing.

Thomas,   "Never get mad at someone who is offering you money".  I like that!  What a great way to put it.

Kim,   Thank you.  For the most part sellers get it, othertimes they just don't want to believe.

Joetta,   You're absolutely right.  It does not work in this market.

 

Jan 27, 2010 09:46 PM #43
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Wallace,  As I said above - in a perfect world it would be wonderful to make everyone happy. But this is a business world in real estate and I don't think that's possible each and every time.

Ann,   The overpriced listing that I talked about is still on the market (or was as of last week).  It's frustrating when we see that happen isn't it?

Anthony,   Your story makes me wonder...if it was one home that was incorrectly reported (the sold date), but two?   Where they sold by the same agent or office?   Just kind of odd that this happened, it would certainly make me perk up if I was an appraisor looking at that data.  Thanks for sharing this with us.

Jenny,   Thank you :-)  It's always good to see your smiling face!

Shanna,  That's a great way to put it!   Buyers are smart.  They do their homework, and with our data to back them up they know when something is grossly overpriced.

Kathy,   You are absolutely correct!   The agent did appear to be emotionally involved with the transaction - and the seller.   I have no idea what his response would have been if the seller hadn't been a "nice person" :-))

Anthony,   I think that comes from HVAC guidelines...or a misinterpretation of them.  I have heard that myself, but as I'm normally on the buyers side of the equation I don't even consider providing comps.

Marte,  No it isn't, nor other agents fault either.

Jan 27, 2010 09:56 PM #44
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Wallace,  As I said above - in a perfect world it would be wonderful to make everyone happy. But this is a business world in real estate and I don't think that's possible each and every time.

Ann,   The overpriced listing that I talked about is still on the market (or was as of last week).  It's frustrating when we see that happen isn't it?

Anthony,   Your story makes me wonder...if it was one home that was incorrectly reported (the sold date), but two?   Where they sold by the same agent or office?   Just kind of odd that this happened, it would certainly make me perk up if I was an appraisor looking at that data.  Thanks for sharing this with us.

Jenny,   Thank you :-)  It's always good to see your smiling face!

Shanna,  That's a great way to put it!   Buyers are smart.  They do their homework, and with our data to back them up they know when something is grossly overpriced.

Kathy,   You are absolutely correct!   The agent did appear to be emotionally involved with the transaction - and the seller.   I have no idea what his response would have been if the seller hadn't been a "nice person" :-))

Anthony,   I think that comes from HVAC guidelines...or a misinterpretation of them.  I have heard that myself, but as I'm normally on the buyers side of the equation I don't even consider providing comps.

Marte,  No it isn't, nor other agents fault either.

Jan 27, 2010 09:57 PM #45
Rainer
261,429
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

Kris,

To answer your question about those sales....It was the same brokerage house...and, get this the same broker.  I went into the history file of the listing and found that the data was changed several days before they sent me the new comps.....I do not beleive for a moment that it was a accident.

Jan 28, 2010 06:26 AM #46
Rainmaker
918,518
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO
SelectAnn.com

Kris,

I believe the listing agent is doing their sellers a disservice.  The house is only worth what a buyer is willing to pay and the bank willing to loan.  The appraisal would have been an issue...

Ann Hayden in Wildwood, MO

Jan 28, 2010 07:05 AM #47
Rainer
117,860
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

One of my favorite phrases that sums this type of listing agent response is "don't try to make sense out of nonsense."

Jan 29, 2010 04:30 PM #48
Rainer
17,805
Darren Ahearn
Remax Results - Frederick, MD
It's about the Home, It's about Serving YOU !

I agree-- the Market does not care about anyting but what a BUYER thinks its worth- no matter if it is a car- boat or your kid -- )))  Yeah-- what is up with appraisers getting to see the offer price before they do their job-  I thought that the offer had no bearing on the outcome result- BUT it does-  I have had many sales this year where the appraised value was the EXACT same amount as the offer price-- even if some of them were priced really low compared to others in the neighborhood-- then buyers look at us and think they are not getting any good deal unless it appraises for much more-- whats up with that- any good words to say besides the appraiser is afraid to loose his license and he is just doing a CMA-- Cover my a______  !!  thanks

Jan 30, 2010 09:04 AM #49
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Anthony,  Now why did I think that was going to be your answer to my question?  Ugh...that should not be happening.

Ann,  I felt the same way you do.  Thanks Ann.

Beverly,  I love it!  I may have to borrow that phrase in the future :-)

Darren,  This is one of the reasons that I counsel my buyers to not be surprised if the appraisal comes in at the exact amount of their offer price, or within a couple of hundred dollars.  Only once in the last year did an appraisal come in several thousand over the price. 

Jan 30, 2010 11:12 PM #50
Rainer
321,367
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

Ah, yes, the old play-on-the-emotions tactic. I love it when I hear that the Seller is 93 years old and has lived in his property for 40 years, even built it, so he deserves a better offer. In my mind, since he built the property himself and has lived there for 40 years, he certainly has gotten his enjoyment out of the property and probably owns it free and clear. And just how much longer will he have to enjoy the extra $10,000?

Feb 06, 2010 02:54 PM #51
Rainmaker
107,841
Dana Devine
Charles Rutenberg Realty - Apollo Beach, FL

these thoughts come to mind:  

  • the first offer is always the higest
  • the market sets the price not the buyer
Feb 08, 2010 12:43 AM #52
Rainer
340,913
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Russel,  your story made me smile.  This type of thing happens all too often.  Thanks for stopping by, it is always good to see you.

 

Dana,   Your 2 thoughts that came to mind are right on!

Feb 08, 2010 02:30 AM #53
Rainmaker
1,116,416
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

How funny, sad, and true that that is funny, sad, and true all at the same time.

Feb 08, 2010 11:45 AM #54
Rainmaker
273,520
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Well said Kris. If the Seller is too happy, I've failed my Buyers.

Feb 08, 2010 02:23 PM #55
Rainer
117,648
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

I have to hope that some of these seller agents are saying these things as negotiation tactics. However, I do believe many are believing their own BS, which hurts them and the seller and wastes everyone's time.

 

You're right, an educated seller and buyers are the best to have.

Feb 22, 2010 05:44 AM #56
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Kris Wales

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