getting out of real estate deal on home

[Atfulldraw]

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

glad to hear it.

[manwitaplan]

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.....

Great Point Rod!

Your are dead on.

[txtrophy85]

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.....

you are correct, that is my job If i'm representing the seller

I give a brokers opinion of value and show comps that support my opinion, from there we come up with an asking price and put it on the market. If the price is very high, I will inform the seller of that and If he still chooses to ask that price then thats his decision. if and when we do get a offer on the property, is accepted and then fails to meet appraisal then he will also have to understand if the buyer walks because of the appraisal. typically I am present when the appraiser is on the property doing his report so I can make sure the appraiser has all the pertinent facts.

there is no crystal ball when it comes to real estate. Brokers are obligated to get the highest and best price for the seller when representing a listing.

I've had deals where the owner told me to list it as X amount, in my head I'm thinking no freaking way, and boom, property sells in 2 weeks.

other cases we have property that is right on the money value wise and they take a year to sell.

but in each case the properties met appraisals unless they are cash deals then they still might get it appraised.

[txtrophy85]

as for your water bottle theory, a market value for a 16 oz. bottle of ozarka is anywhere from .79 to $1.00 if purchased at a gas station or convineance store.

if you buy the same bottle from a street vender for $2.00 the that dosen't make the value of the bottle $2.00, it just means you paid $2.00 for a .79 bottle of water

you are partially correct that a property is worth what someone is willing to pay for it, but there are upper limits to that

[Atfulldraw]

as for your water bottle theory, a market value for a 16 oz. bottle of ozarka is anywhere from .79 to $1.00 if purchased at a gas station or convineance store.

if you buy the same bottle from a street vender for $2.00 the that dosen't make the value of the bottle $2.00, it just means you paid $2.00 for a .79 bottle of water

you are partially correct that a property is worth what someone is willing to pay for it, but there are upper limits to that

my water bottle "theory" is based on me willingly paying $5 for a bottle of water, from a guy in New York who just stood in line for ten minutes to buy it for $2.00. Value is what me (the buyer) was willing to pay for it. The $5 in the seller's pocket is still 5 bucks.

glad we could finally agree!

[Birddog66]

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!

Good Deal. That's the way it goes sometimes.

[txtrophy85]

my water bottle "theory" is based on me willingly paying $5 for a bottle of water, from a guy in New York who just stood in line for ten minutes to buy it for $2.00. Value is what me (the buyer) was willing to pay for it. The $5 in the seller's pocket is still 5 bucks.

glad we could finally agree!

but if there was someone who was telling you that $5 was too much, would you still buy it or try and find someone with a bottle of water for $3?

[Burnadell]

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!

So.........you asked us for advice and did not give us even half of the story with which to evaluate the situation and offer good advice? Why would you want us to waste our time and energy, and get upset with each other, to provide you with advice...without telling us the whole story?

This seems to be the case everytime people ask for advice on here!

[JSAPP]

So.........you asked us for advice and did not give us even half of the story with which to evaluate the situation and offer good advice? Why would you want us to waste our time and energy, and get upset with each other, to provide you with advice...without telling us the whole story?

This seems to be the case everytime people ask for advice on here!

Bingo! He just wanted to hear that he was right. Anything other than that is just not informed.

[denowt]

So.........you asked us for advice and did not give us even half of the story with which to evaluate the situation and offer good advice? Why would you want us to waste our time and energy, and get upset with each other, to provide you with advice...without telling us the whole story?

This seems to be the case everytime people ask for advice on here!

Totally agree with you.
I need to stop getting sucked into these types of threads.

[Burnadell]

Well, it ticks me off that people would take of advantage of the good TBHers who so willingly offer their expertise in certain fields, such a s legal, real estate, mechanical, family issues, etc. and hold out information that is needed to evaluate the problem.

[Atfulldraw]

Well, it ticks me off that people would take of advantage of the good TBHers who so willingly offer their expertise in certain fields, such a s legal, real estate, mechanical, family issues, etc. and hold out information that is needed to evaluate the problem.

you didn't really expect to get the whole story did you?

you know there are at least three sides......

[JSAPP]

Well, it ticks me off that people would take of advantage of the good TBHers who so willingly offer their expertise in certain fields, such a s legal, real estate, mechanical, family issues, etc. and hold out information that is needed to evaluate the problem.

Though we all share at least one interest, we are not all the same on here. That becomes very obvious at times.

[Stuck]

Well, it ticks me off that people would take of advantage of the good TBHers who so willingly offer their expertise in certain fields, such a s legal, real estate, mechanical, family issues, etc. and hold out information that is needed to evaluate the problem.

I've been following this for 2 days and at this point conclude I will not buy a bottle of water form from the OP.

[lnester]

Glad you got out of the contract.

[soapbox time] Why is 6% some magical number? I will tell you - collusion! Why can't you and I find out the price of a house sold in Texas unless we belong to MLS? I'll even pay the $300 fee to belong to the MLS of DFW (or whatever area I live in at that time)!! Ohhhh...you mean I can't pay to join the MLS unless I am a "realtor"? B. S. [/soapbox]

Agents that sell big commercial properties don't get 6% so why do residential agents get the magical 6% number? That's a ridiculously high % of a deal.