Bad Realtor?

**grem** · 12-09-2010, 03:56 PM

Hello,

My wife and I are first time sellers. We just got our first offer on our home 12/8 for $75k and our real estate agent recommends that we jump on it. Our house has been on the market since 7/5 and when we originally selected this agent she gave us a CMA and told us our house would not sell for less than $92. About a month after we signed on she started recommending we drop our price to the $80s. Then she said our house would sell for the low $80s. Now she gave us a CMA saying our home was worth $72k to prove we have a good offer. When I asked what changed she explains that it's a weird market and she is seeing this all over the place. She also keeps explaining that it's not a loss as long as we buy another house right away. How do I know if we have a good offer? Do home values really drop that quickly? Any recommendations?

To expand on my unease, the showing was scheduled 2:00 12/7. My wife packed up the kids and was about to head out the door at 2:05 when our realtors daughter (who works for our realtor) called and said she was stuck in a meeting and would not be able to show the house. So she asked my wife to show it for her. It really bothered me that 1. she waited until after the showing was scheduled to bail on us. 2. That my wife was stuck showing the house to strangers while wrangling an infant and a toddler and 3. that the realtors daughter was the one showing the house. At first I assumed these folks didn't have a realtor, now I wonder if she is their buyers agent.

Thanks,

Grem

**Ka.Warner** · 12-09-2010, 08:18 PM

First things first, in my opinion yes you have a bad apple.

Unfortuantly in the Real Estate business you we see many agents who are will to up-sell your house during your listing appointment in order to get you, the homeowner, to sign a listing agreement with them. Sure there may be one or two homes that sold for $92k in your neighborhood, but were they truly comparable or just comparable based on location. Many times especially in my market, you see fully remodeled homes on streets with homes falling apart. Needless to say, clearly not comparable.

In most cases this method of up-selling for the listing works. Why? well first not only is it what you the homeowner wants to hear but, it is also what you are thinking. Most home sellers think there homes are worth much more then what the market is bearing. In the world of competition the one who puts out the best offer gets the nugget. So if an agents tells you they can sell it for a great amount most likely they are telling you a little fib to get you to sign. Then a month or two or three down the road they tell you its the price that is wrong. The same price the told you they could sell it for, but they knew they couldn't.

Aside for what from that dilemma, which I find to be highly unethical, you also encountered the problem of you wife having to show the other party. First of all at least in the state of Virginia you MUST disclose duel representation so if that is the case you would have to sign off on it. It could just be an incredibly unorganized agent. Either way you should NEVER let your family member conduct a showing were there is no agent present. This is preposterous.

What I believe you should do since you do have a offer. Schedule a meeting with the broker, and ask them to show you a valid CMA for you home? Ask their opinion of the offer? If you believe it is a good deal then ask if you may be represented by another agent in the office if you no longer feel comfortable or TRUST this agent.. TRUST is key. Remember you are a client of the broker not of the agent.

**agentsranking** · 12-10-2010, 10:11 AM

If your real estate agent is representing the buyer she is required to disclose this information to you, it is called dual agency. From the sound of it this buyer isn't working with a real estate agent. If that's the case I would highly suggest that based on the circumstances that you tell your real estate agent that you would like her to discount the real estate commission. If the buyer is unrepresented your real estate agent will not be splitting the commission with any other agent and based on the fact that you were stuck showing the house, you have a good argument for a discounted commission.

Regarding the home price I have a couple of thoughts. There certainly are a lot of real estate agents that get listings because give them inflated CMA's. Think about it, if you interview four real estate agents and they give you a range between $70k and $95k as a value, you'll be tempted to choose the real estate agent that thinks the house is worth the most. On the other hand, the market is changing very rapidly. Based on your price range I'm assuming you own a condo. If you've had a few foreclosures or short sales in the building this can really bring down prices in a hurry.

Good luck.

**Greg** · 12-10-2010, 10:43 AM

Ditto to the 2 posts above.

Plus.

A buyer never makes their bottom line offer right from the start. Buyers always try to see how low they can get the seller to go, especially in this market.

So, what you need to do is go back to the buyers with a counter offer of $1,000 or $2,000 lower than your current asking price.

If the buyers are serious they will come back to you with another counter offer higher than their original offer. Then you do the same thing again until you both agree on a number.

It is uncanny how many times a buyer will split the difference between what they originally offered and the list price and agree to buy the house for the number right in the middle of your list price and their original offer.

Good luck and please keep us up to date.

**grem** · 12-10-2010, 05:27 PM

When the realtor presented us this offer she recommended we accept it immediately because she thought it was the best we would get and that she wanted us out of our neighborhood quickly. She told us to call her back by the end of the day. This was a verbal offer, so after thinking about it I sent an email asking for a written offer with more information. For instance, I'd like to know if we are expected to pay closing costs, do any repairs, etc. She wrote me back that she didn't know, but that we could counter offer that we accept $75k if they pay closing costs. This just isn't what I expected.

**grem** · 12-10-2010, 05:33 PM

Frankly I know I have a bad realtor and need to replace her. I am going to counter offer within a few thousand of our asking price and offer to split the closing costs. Hopefully these are serious buyers will be willing to negotiate. If the buyers walk away I am going to fire her.

I appreciate the responses to this thread.

Next question - My wife signed a 1 year contract with this company and when I reviewed the contract I could not find a termination clause. Is it difficult to get released from contract or could we be stuck not selling the house until the contract is up? Does it matter that I never signed the contract?

Thanks

**john woo** · 12-11-2010, 06:57 AM

Forget the Better Business Bureau. Real estate agents have licenses. Their broker is directly liable for their agents actions.

**clemy** · 12-11-2010, 09:11 AM

Originally Posted by grem

When the realtor presented us this offer she recommended we accept it immediately because she thought it was the best we would get and that she wanted us out of our neighborhood quickly. She told us to call her back by the end of the day. This was a verbal offer,...She wrote me back that she didn't know, but that we could counter offer that we accept $75k if they pay closing costs. This just isn't what I expected.

You do NOT have an original offer one which to counter. Verbal real estate offers are not real offers. Contact this agent's broker immediately, tell him/her what your agent has done/not done and ask for another agent.

**lvagent** · 12-11-2010, 04:45 PM

I agrre with the above stated, and you really have no offer if it is verbal. Get it in writing, and send the counter in writing.
If you want to terminate the contract you likely have to make your case with their broker, as the lisitng belongs to the broker and not your agent.
They will have to disclose the dual agency, also in writing.

**Jonathan Radford** · 12-13-2010, 08:24 AM

$92k to $72k over a 5 month period seems like a pretty steep drop for only a 5 month time-frame. I agree with Ka.Warner, it seems like like you may have a bad apple.