getting out of real estate deal on home

[Death Dealer]

Geez, a thread full of perfectionists and judgmental "experts"... I'd tell them all that they are in a multiple offer situation and go from there..

[NibletGillispie]

No. I am an appraiser and I looked it up. That property did not sell for that amount.

Well, now I'm crushed.

Since it said that on the internet, it had to be true.

[Preacher Man]

And to add a whole other level of interest to this situation, accepting the highest offer may not matter if the house can't appraise for that amount.

Some people protect themselves from this whole situation from the start by selecting a qualified appraiser and have that done first. Then they'll interview realtors and go from there.

[Preacher Man]

Well, now I'm crushed.

Since it said that on the internet, it had to be true.

Yea right. Unfortunately....not so much. Zillow is probably the best thing going other than consulting a real estate professional and its not all that good.

[denowt]

lol. the bravado....

this isn't a bar fight, it's a business deal.

he's trying to back out because he is concerned that the agent didn't do his job pricing the property correctly. He relied on who he thought was the expert, and now he has some options.

If you hire a lawyer or a doctor to do a job for you and they screw it up, are you going to just sit there and take it?

The seller agreed to and signed a contract for the selling price.
How did the agent screw up?

That's a dump question, he already said he did't think it was listed at the right price

He signed a contract that he agreed to. Seller's remorse is not a "screw up" on the agent's part.

He said he told the agent he thought it was to low. I would do what Atfulldraw is suggesting and make some deals with the high bidders.

And he raised the asking price and signed a contract. Should've did his homework and not signed if he thought it was too low.

I do agree with you and Atfulldraw about the multiple buyers deal though.

[manwitaplan]

You could always negotiate a commission fee with your realtor and pay it in cash then cancel the contract.

I will state this advice from a very wealthy friend mine "pigs get fatter and hogs get slaughtered"

Before you decide what to do you need to spend 350.00 dollars out of your pocket and have it appraised by an appraiser not a realtor. That will tell you with in 10,000 or so of where you should set your price.

I like others on here have not had good experiences with realators in the past. So I would make very biased comments which would not be positive.

Good luck buddy!

[bigbad243]

And he raised the asking price and signed a contract. Should've did his homework and not signed if he thought it was too low.

I do agree with you and Atfulldraw about the multiple buyers deal though.

You do realize he hired the realtor so he didn't have to do his research, right? If he would have wanted to do that work, he could save 6% and list it himself. It is the job of the realtor to get fair market value, not below so it will sell in a day....

[txtrophy85]

You do realize he hired the realtor so he didn't have to do his research, right? If he would have wanted to do that work, he could save 6% and list it himself. It is the job of the realtor to get fair market value, not below so it will sell in a day....

And the realtor suggested a list price and he went higher

Who on here is to say what fair market value is for the property?

If the house goes under contract for $250k but appraises for $230k then the house is valued at $230k.

[txtrophy85]

It's not hard to determine a ballpark market value for residential properties.

All a agent has to do is get on mls and see what like properties have sold for in the past 3 months and then cross reference it using a cost approach

Im sure the agent did that when he suggested a list price. It's very doubtful he made it up off the top of his head.

[denowt]

You do realize he hired the realtor so he didn't have to do his research, right? If he would have wanted to do that work, he could save 6% and list it himself. It is the job of the realtor to get fair market value, not below so it will sell in a day....

I've only sold 1 and bought 1 house, so I am in no way anywhere close to being an expert. But I never take someone else's word on what something is worth.
It doesn't matter if we're talking about houses, vehicles, guns, or whatever. I'm doing at least a little research on my own whether I'm the buyer or the seller. Maybe I'm a little paranoid though.

[Atfulldraw]

And the realtor suggested a list price and he went higher

Who on here is to say what fair market value is for the property?

If the house goes under contract for $250k but appraises for $230k then the house is valued at $230k.

the house is worth what price a willing buyer and seller can agree on.

I've had two appraisers vary by almost 20% on a 250K house. The first one mistakenly thought he set the value.

You do the math.

The house sold for 250K.

[kabob]

I'm sorry that you made a bad deal. But...you did make a deal and at some point you agreed that if the agent sold it for $235K then you'd be happy. Sounds like he gave some poor advice, but you still agreed to it. The right thing to do is honor your agreement, but where money is involved sometimes people forget the simple things.

I agree with this....

[kingranch]

Wow didn't expect this kind of reaction

Sorry guys but you don't have even half of the story
I don't wish to elaborate but if I did you would all be on my side I promise you that...

I am good to go I have straightened out the situation and we will both walk away happy

Lesson learned i will NEVER go off what A realtor gives you alone. Do some research and find out what comps are going for, one of my failures as a seller
Glad I'm not in this business as its makin my blood boil!

[txtrophy85]

the house is worth what price a willing buyer and seller can agree on.

I've had two appraisers vary by almost 20% on a 250K house. The first one mistakenly thought he set the value.

You do the math.

The house sold for 250K.

If a property won't appraise then it's not worth the asking price. May be worth it to the seller, if he wants to ante up the difference

Paying $250k for a $230k house dosent make the house worth $250k

Thats the point of appraisals in the first place, to establish value

But I'm just a real estate broker, what do I know?

[Atfulldraw]

If a property won't appraise then it's not worth the asking price. May be worth it to the seller, if he wants to ante up the difference

Paying $250k for a $230k house dosent make the house worth $250k

Thats the point of appraisals in the first place, to establish value

But I'm just a real estate broker, what do I know?

this demonstrates a basic lack of understanding in the difference in value and fair market value.

If you buy bottled water, you might be able to understand the difference.....

Water has a value of about 10 cents a gallon -- put it in a little bottle, and the fair market value is apparently much higher.

Houses are the same -- I can build a house cheaper than I can buy a comparable already built house (in most instances). People will pay a premium for the package deal -- they don't have to wait, deal with a builder, live in an apartment, whatever....so they are willing to pay a bit more. However, those two houses have the same fair market value when completed -- but one guy paid 25K more than his neighbor.

Regardless, the fair market value is not determined by a third party appraiser. Appraisals simply exist to protect the lender -- and you don't have to look far back to see how historically how terrible they have done that one simple job.

Since you are a broker, would you not be failing your seller by not trying to get the maximum price for his property?

That was the original question.....