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Not Using a Buyers Agent Cost A Buyer $100,000 . . . No Joke!

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

Not Using a Buyers Agent Cost Buyers $100,000 . . . No Joke!

About a week ago my client called to give me an update on the sale of her current residence.

I am not representing her in that because my brokerage, Buyers Agent Portland, is an Exclusive Buyers Agency and we don't take listing or represent the seller.  I did, however, refer her to a wonderful listing agent who is tremendous!  

We closed on her home purchase first of December last year.  She did not need to sell her current residence in order to buy . . . but her current residence is Pending and will close in a few days.

Without getting in too deep, the bottom line is this . . . I looked up some sales in her area and saw a home which was a VALID COMP to her property.  It sold a few months ago for $470,000.

The comp property has the same year-built date, is in the same zip code (less then 1.5 miles away), has the same sq. footage. (@100 ft. larger), had the same design -- one-level ranch, the condition is similiar, and no real major updating done.  The property that sold for $470,000 sits on .97 of an acre.

The comp property sold in one day for full list price $470,000.  Cash.

My client's property is on 5 acres, has a view, and is in a better location.  Sale price is $398,000, which is current market value.

In the CURRENT market, if the new owners of the $470,000 property would put their property up For Sale . . . there is NO WAY it will sell for $470,000 . . . the comps are just not there.  

The comps were NOT there when they bought the place either.  And because it's on an inferior lot to my clients, there can easily be a price adjustment of $30,000 less.

Oh . . . did I mention they bought the property from the List Agent -- who had NO FIDUCIARY DUTY to the buyers to run/pull local comps or show similiar properties, or negotiate in their best interest?

When the average days on market in that particular area is 145 days.  Hmmmmmm . . . wonder why the Buyers got suckered into that deal . . . all cash and sold in 1 day by the Listing Agent.  

Unless the property that sold for $470,000 has some buried treasure or other hidden mother lode . . . all I can say is . . . 

. . .  the Sellers made out . . . like bandits!

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

All Rights Reserved © 

Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Carla,  I cannot help but wonder who clueless the buyers were.  My gosh, are questions not asked?  I just don't get it.   I get the listing agent representing the buyer ... but I don't get how clueless buyers can be.  But, there you have it folks, hire a buyers agent to represent you. They have your best interests at heart!

Jan 26, 2014 11:57 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Carla - of course, there are assumptions here, but if you are right, and there is no hidden treasure, the numbers are stunning

Jan 26, 2014 12:01 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Hi Kathleen . . . I don't know buyers' reasoning, all I can read are the comps.  The property that sold for $470,000 is a perfect comp to my client's home (@$400,000) and minus the $30,000 for the smaller lot (by 4 acres, plus territorial view), that 's $370,000.  The listing agent had no fiduciary duty to the buyers. The buyers didn't have their own agent.  They got suckered out of $100,000 IMHO.

Hey Jon -- yes, I agree about not knowing, but geez.  I do know the area.  There is no way that $470,000 would have been the appraised value.  It was a cash deal, sold in one day.  A fool and his money . . . as the saying goes.

Jan 26, 2014 12:03 PM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Wow.  That is really something.  In this day and age for a buyer to be so naive.  To pay cash with no appraisal, to not hire their own representation.....that is just mind blowing to me.  What a waste.

Jan 26, 2014 12:56 PM
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Cash buyer and no buyer representation. What a pitiful consequence to the buyer? Hopefully, the buyer's bank account is enormously huge that the loss would be nil to nothing.

Jan 26, 2014 08:25 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Carla, Some people have more money than sense.  We've seen similar in our market and we always wonder what was the rest of the story?  Grandkids live next door and they just HAD to have that home?  Just didn't care that they were overpaying?  Never plan to sell at all?

Jan 26, 2014 10:47 PM
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Carla - sounds like Barnum's corrolary is in effect a buyer without a buyer's agent is born every minute or something like that. Just a shame to see someone taken advantage of or perhaps they just really liked that house.

Jan 26, 2014 11:00 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

It's important to know how the agent is representing you as you point out -

Jan 27, 2014 12:58 AM
Debbie Walsh
SHAHAR Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Wow...I hope they will not have to sell anytime soon...that is not something that was in their best interest for sure!

Jan 27, 2014 02:09 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

That may come back to haunt them. I hope they plan to stay for a very long time. 

Jan 27, 2014 03:16 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Stories like these make me wonder why any buyer in their right mind ever goes directly to the listing agent.  They think they are going to save some money, but the joke is on them every time.

Jan 27, 2014 06:44 AM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

In our area Carla, a distance of 1.5 miles could easily return a difference of $100K for two homes where everything else is equal. But that's crazy California for ya!

Jan 27, 2014 12:25 PM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

I'm not sure why every buyer would not insist on Buyer Representation but most don't...

Jan 27, 2014 10:18 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Sadly there was an agent looking out for HIS OR HER pocket only.   Probably did all right for now, but no referral happening here

Jan 28, 2014 04:19 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     The Listing Agent  probably had a duty to get the highest price for their Fiduciary, the Seller... so I cannot say that such an LA is "unethical".  

     But I can say that a Buyer who goes straight to the LA and overpays by $100k is a numpty!

Jan 28, 2014 11:26 PM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Carla, that's quite a story and it happens all the time. Especailly when purchasing unlisted properties! Hire a Realtor. It's worth the money!

Jan 29, 2014 04:37 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

carla, I hope buyers will read this post and learn of  the importance of working with a buyer agent.

Jan 29, 2014 07:48 PM
Sharon Harris
Keller Williams Keystone Realty - Hanover, PA
Realtor

I thinks sometimes buyer have no clue who or how Real Estate works. Sad that they take the word of the first Realtor they speak to. In this case the List agent. 

You would think that buyers would at the very least go online and look up . Buying a house.  After all it a huge purchase. Being smart and using a buyer agent is the only way to go!

Feb 08, 2014 04:16 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

No likely referrals anytime soon from the new owner/buyer, but surely one very happy seller and tons of referrals.  Amazing.  Smart listing agent and seller.

Jul 09, 2014 01:38 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

@#19 -- Yup, if all you dream about is f'ing with people, i.e., the buyers, and taking their money, he did a splendid job.  Claude Labbe, if your goal is to screw someone over, your comment says more about you than you might think.  Ethics lacking??  Oh, your market is Washington D.C. <------------------ no wonder!!

Jul 10, 2014 03:48 AM