How much to offer home seller

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MikeP wrote:

It's something along those lines. That's what I said in the first place, the buyer's agent is working for the seller. Call it a subagent if you like, that's the agent that the vast majority of buyer's use currently.
Brian
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Default User wrote:

Then he/she isn't a buyer's agent. <aside...gad, what a dolt>
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dadiOH
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Default User wrote:

Then you should stop referring to a broker representing a seller but dealing with a buyer as a "buyer's agent". ________________

I'm not defining anything, I'm just telling you how it is but you are too inexperienced and/or semantically challenged and/or thick to understand. _______________

I'm right as rain. _______________

And yet you say they are working for the seller.
You are still clueless. Avoid any and all real estate transactions. You might also want to check on the legal meaning of "agency".
-- dadiOH ____________________________
dadiOH's dandies v3.06... ...a help file of info about MP3s, recording from LP/cassette and tips & tricks on this and that. Get it at http://mysite.verizon.net/xico
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I agree with half of this. The commission is a function of the sale price, so the buyer's agent typically has an incentive to push the price higher. However, who pays the agent is irrelevant, except with regard to the separate issue of how much cash you can bring to the closing. The agent's incentives are dictated by what actions they can take to increase their income, not by who writes them their check at the end of the day.
Brian rightly points out that buyer's agents have an incentive that pushes the other way: to treat you right so they get referrals. OTOH, in a large hot market, agents will rely on referrals to differing degrees. Some agents will be able to simply cater to ill-informed buyers and treat them poorly, not caring much about referrals. Agents with large cheesy ads in the paper are prime suspects here.
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ccs>ikyr wrote:> Brian rightly points out that buyer's agents have an incentive that

It certainly wasn't my intention to say that there aren't stupid agents, or greedy agents, or lazy agents, or poorly informed agents, or any number of other bad types. There are. Usually you hear about bad sales agents versus buying agents, but there are any number of horror stories out there.
Caution is always warranted. Unreasoning paranoia is not.
Brian
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Actually, smart, diligent, well-informed agents will act just the way I described. There are, in all markets, an abundance of people who simply choose not to be thorough in their search process. Some agents will do a steady business in serving those clients, call them "tourists". Since referrals aren't the focus of their business, they are less of a check on their behavior.

I agree. Unreasoning? As I just explained, the existence of those agents is quite rational.
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ccs>ikyr wrote:>> Caution is always warranted. Unreasoning paranoia is not.

I'm not sure that we're talking about the same thing. I was referring to the OP's "I can't trust my agent, not even to recommend an appraiser!!!"
Brian
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kokonutty wrote:

You fail to understand. The OP was concerned because he thought the buying agent had an interest in the property selling high because the agent's company represented it. Well, the buying agent gets a share of the percentage of the selling price. They are always working for the seller. That's just the way it is.
A good agent, as I said elsewhere in the post (you didn't bother to quote, you should do that) will put aside momentary opportunities to make money and do a good job for the buyer. Again, you didn't quote my example of an agent possibly hurting herself to represent me properly. That's because a successful agent knows the money is in repeat business and referrals.
Brian
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Default User wrote:

That was true but nowdays many states, not all, have Buyer's Brokers in addition to the traditional Seller's Brokers. Also, some states have Dual Brokers to handle situations such as a large brokerage house that is both buying and selling houses. And still worse, there are Neutral Brokers in some states. Call your state Division of Registration for Real Estate and ask!
Very often a "Buyer's Broker" is just another name for the buyer's attorney. All buyers should employ technical advisers such as home inspectors, title researchers, surveyors, etc. In some states Appraisal is a licensed profession so be certain your inspector has a license. Check the Yellow Pages.
You bank may want some inspections. But always remember these are to protect the bank's interest, not necessarily yours.

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Stubby wrote:

Yes, and I should have clarified that I was speaking of traditional practice. It's (from reading between the lines) very likely the set-up the OP is describing.
As I mentioned elsewhere, I don't know anyone who's used a paid broker. I'm also not sure of what happens with the commission in those cases, whether the buyer gets the half that would normally go to the buying agent or what.
Brian
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Default User wrote:

You are being incredibly thick.
Repeat after me...THERE IS NO SUCH THING AS "THE BUYING AGENT" UNLESS YOU HAVE SPECIFICALLY HIRED A BROKER FOR THAT PURPOSE. The agent who showed you the property, relayed offers to the seller, etc is NOT a "buying agent". They are seller's agents dealing with a buyer.
If you or someone else *has* hired an actual buyer's agent, that has no effect on the divvying up of the commission between the listing agent and the agent who sold the property (who may also be the listor).
-- dadiOH ____________________________
dadiOH's dandies v3.06... ...a help file of info about MP3s, recording from LP/cassette and tips & tricks on this and that. Get it at http://mysite.verizon.net/xico
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dadiOH wrote:

Ah yes, a bit of name-calling. That gets your point across.

Nonsense. YOU may define it that way, but that is certainly not common parlance.
It's also most likely what the original poster in this thread was talking about when he used the term. Very few people use what you call a "buyer's agent", almost all property is bought the way I described.
Brian
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Default User wrote:

I suggest you call the State division of Registration to find out the answer in your state.
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Stubby wrote:

Oh I'm far too lazy for anything like that. Let me know what you find.
Brian
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Default User wrote:

Apparently not. ________________

Fine, stay ignorant.
-- dadiOH ____________________________
dadiOH's dandies v3.06... ...a help file of info about MP3s, recording from LP/cassette and tips & tricks on this and that. Get it at http://mysite.verizon.net/xico
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46erjoe wrote:

No rule of thumb. Asking price is set by the seller who often has dreams of value. Some need "x" number of dollars towards the house they next want to purchase. Agents tend to tell the sellers what they want to hear in hope of landing the listing. Neither of which means anything to the actual value.
The value is the highest amount a buyer is willing to pay. Do a little research on recent sales in the area to determine what you feel is a fair amount to pay. Make your opening bid a bit below this. You'll know quickly if you are in the ballpark. If an agent doesn't want to present the offer remind him/her by law they are required to do so.
Expect some negotiation. Just keep in mind what your upper limit is so as not to get burnt with the transaction.
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If the seller wnats to sell the property he will deal with whoever has the best offer.
Do your research. If there are several houses in an area that you would consider then take the asking price of each seller and go with a low bid on the best property.
If it is a hot market area there may be bids higher than the asking price.
A poor area nad you could go 60% of asking price.
You can often find out how long a property has been on the market by asking the agent for a property info sheet.
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wrote:

Thicken your skin.
I suggest you develop a plan for negotiating that will both satisfy your own needs and yet permit continued discussions with the seller. That usually involves some light hearted bantering with the seller or his agent. Humor works wonders, but there is no magic number. The fair market value and current situation of the seller is King.
I've been offered 50% of my asking price and I didn't mind, but others may have been offended and refused to deal with the person.
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This house has been on the market for about 2 months now. It's located in the Clarks Summit area of NE Pa near Scranton where prices tend to be lower than national averages. The company selling the home mostly does re-locations because the area has a lot of fairly temporary residents. Eg. This house was bought (my realtor says) 3 years ago for #162K. It's on the market now for $175K. No work was done to it because it's fairly new. On my walk through I noticed it had a 200 amp square D service box, new hi efficiency forced air gas furnace. Taxes are on the high side I think. It may even be that the home is currently owned by the company the previous owner worked for. If you're curious, the MLS # 20055340 and can be seen here: http://www.classicproperties.com/bin/web/real_estate?acnt=AR166250&ZKEY=&action TIVATE_FRAMES&button=&tm=&linkout=http%3A%2F%2Fwww.scrantonpamls.com%2Fcgi-scr%2FBR_login%3Ffarsf11 The last photo shows a beautiful addition made to the original home
wrotF:

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How is the market? Is the house occupied? When we purchased our home in '92 the owners had moved out of state and purchased another place, leaving this vacant. They wanted 84K, we offered 69k and settled on 72K. It needed a new roof, which they would have paid for if we offered full price. They took our offer because they had NO offers in 5 months.
Last year the people across from me listed their home. The priciest home in our neighborhood had been 250k, they thought their place was worth 329. Lots of lookers and only lookers. (They were going to lower the price but they were getting so many lookers that they thought they were asking too little!). Someone came by one day, offered 319 and they laughed "it's a bargain at 329!". he left, made an offer on something else. 9 months later it's still sitting there at 329 after having changed agents. No lookers in a while.
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