Buyers Losing Money Fast

Frank.  Why on earth would a buyer's agent recommend making a full price offer that cannot be supported by comparable sales in the area????

Quite unprofessional and the buyer needs another agent.

Good morning, Frank....I found this post via Lenn's reblog....people buy on comparison, and I would like to think that buyers' are not relying solely on the guidance a buyers' agent is sharing.... not wise....

Agents must do the comps and advise accordingly. The if a buyer offers above market...it is on them.

Comps are critical. You won't find an exact match for the home you want to buy but you should come up with a realistic range. It is unfortunate that buyers had those initial costs before finding out. Sometimes seller will reduce price to equal appraisal. Other times appraiser isn't using good comps and you can ask for another appraisal.

Frank, shame on the agent for not running comps before writing the offer.

Professionals are absent here....thats what this story says loud and clear.....Dabbling in Real Estate? COSTLY

I guess real estate practice varies from state to state. In Louisiana, an agent cannot "Tell" a buyer what to offer. Of course quality agents run comps and suggest a price, but at the end of the day, the buyer signs an offer.

When working with a buyer I offer a recommended price based on my market knowledge. Most of the time the buyers agree, sometimes they don't. Usually this is the result of a well-meaning family member or friend offer advice. Perhaps this is what happened in your scenario.

I would never recommend a buyer make an offer at a certain price unless we had a solid CMA that indicated the price was supportable and would appraise.

One of the must-dos when representing a buyer, is to do a comparable market report prior to making an offer, for exactly the reason you mention - appraisal value is critical.

I agree that before an offer is made that a CMA should be doe to properly represent your clients interest. I always did cma's before going over an offer to be made.

Great post and excellent comments - especially love Lenn Harley's response - that buyer indeed needs another agent!

Frank, I did not sound as if there were multiple offers so why on earth would anyone offer full price. Both the agent and the Buyers need to re think their negotiation strategies or lack thereof.

I always do a market analysis on any home that I make an offer on.

One of the responsibilities of buyer's agent should be - prepare market analysis for the home the buyer wants to write an offer. Did someone miss something here?