 Posted 3/27/2007 9:50:47 PM
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I agreed to work w/ a realtor over the phone. I stated we'd pay between 2-3% (we planned to base the % off of the offer). Realtor brings buyer over for showing, returns an half hour later w/ offer. I am asking $79,900. We have several parties interrested, one working on financing, and the others are thinking about it. Home has been FSBO for only 1 wk and we are getgting a lot of interest. Anyway, realtor returns w/ offer and puts down a form for me to sign and even though I read it, I missunderstood what it represented (heat of moment, first time doing this). The form I signed stated I would pay her 3.5% or no less than $2600. Then she proceeds to go over the offer w/ me. They offered me $76,000, asked for $2500 in closing cost, and a $385 warranty. WHAT???? So, I understand that I should expect a first offer to be low but WOW, never would I expect so much from such an already priced to sell home w/ many updates etc etc. The way I see it, when I ask someone to pay my closing costs I sure as heck wouldn't offer much less than aksing price. ESPECIALLY a FSBO.
So, I guess my question is what should I do w/ the counter offer???? I did some math and figured to cover realtor's sneaky 3%, buyers $2500 + $385 and 1 yr of taxes and not be below $75,000 I would have to counter off around $84,000.
A family memeber suggested I counter offer $79,900, we'll pay the $385 warranty and realtors 3.5% but that is it. Also to add that the house is "AS-IS" and no repairs etc etc will be made after inspection.
Please, any help would be appreciated. This is our first FSBO. I have until 6p Wed the 28th to respond.
If it helps. I paid $66,900 2.5 yrs ago. Home had no updates and no appliences. We have since done a lot of landscaping and added a lot of curb appeal. Gutted and replaced everything in bathroom. Updated kitchen, added appliences that are only 2 yrs old, new water softner, bladder tank, plumbing, electrical and a few I am sure a few other things. We estimate that we have $6k in expenses and there is no telling what we have in sweat equity.
Home is priced below others for the area. Area is VERY nice and established. Our market is steady and most homes stay on market around 80 days and get close to asking price. These are homes that are listed thorugh the MLS.
I hope to get some honest advice. Thanks in advanced.
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Posted 3/28/2007 8:54:53 AM
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I don't accept anything less than listing price for at least 4 weeks. If you're willing to pay 3.5% commission, and a $385.00 warranty, you might as well list for 5%, and not deal with any of this (That's a big IF). For now, I'd say stick to full price until you've given your home a little more maturity and exposure.
Bo Villacis
Real Estate Professional
WWW.Bovillacis.com
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Posted 3/28/2007 10:57:23 AM
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HI Elizabeth,
It sounds like you have a lot of interest in your home and it's only been on the market one week. Great!
I don't trust this agent at all. If she's going to pull a fast one on the form you signed, who knows what else she'll pull. It appears she's taking advantage of you as a first time FSBO. I don't know what state you live in but each are different in terms of closing costs. In some states the buyer pays and in others, the buyer and seller split the cost. Check your state at: http://www.owners.com/Tools/Library/ShowArticle/24.aspx.
I would simply not respond to the offer which means it goes away.
If you counter, I think you're letting yourself in for more trouble with this particular agent.
Also, you don't have to sign anything right away and in front of an agent. You should tell the agent you'll read it over and get back to the agent the next day. That way you can take your time, not feel pressured, and really understand what you're signing.
It sounds like you have a great property and the agent knows it. And so will others.
Best of luck to you.
FSBO Guru
Owners.com
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Posted 5/21/2007 9:31:23 PM
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I agree with the others, given the short time on the market and the interest I wouldn't give away the farm just yet, but I would always be a little negotiable. Perhaps the following MAY work for you:
Counter back at $82,500 and agree to pay 3% commission, $385 warranty and $2,500 closing costs.
Doing so should appear to be reasonable to all parties and if you are underpriced as you noted, then the extra $2,500 shouldn't be a big deal. I don't know your market, but my past experience leads me to believe a buyer in that price range will be a first time home buyer and will need assistance with closing costs, down payment, etc. If this is a correct assumption, then most likely any buyer will have similar needs. Also if an agent brings you a buyer, they too will expect (and deserve) to be compensated. Of course, you can negotiate the realtor fee but don't let a few hundred dollars ruin a good deal. Remember, it costs money to live and maintain a home until it sells and those costs along with time factors should be included in the equation. Lastly, the warranty. If your home is older, it will provide the new buyer a peace of mind. I've seen the agent sometimes split the cost of the warranty but again, given the low dollar value I would be careful not to make a huge deal out of it and lose a potential buyer.
If you would counter back at $82,500 with the conditions noted above, it would net you back around $76,200 which is above the threshold you wanted to maintain.
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