PDA

View Full Version : Real Estate Etiquette Question



CBadDad
04-03-2007, 10:35 AM
There is a house down the street from me that I really would like to buy. It is empty and has been on the market for over a year. It started out at $800K and then went to "entertaining" offers between $749K to 799K. That agent did nothing and the listing expired. Another agent listed it shortly there after and the asking price came down to $699K to 749K. I think that listing is about to expire as they've lowered the price again and have been holding open houses every weekend. This time it's down to $679K.
I have never been inside the house and have not spoken to any agents about the house. I've only looked at the flyers and some internet searches to learn what I can. What I want to do is go to the county records and find out who owns the home. From talking to my neighbors, the husband passed away a few years ago and his wife moved into a convalescing home. She may have since passed away and it now it is possibly owned by the kids. I'm not sure.
It still is about $100K above my price range. So I have a few options. My GF would love to move in with me and then I (we) could afford it. I'd rather not, but it is an option. I could also ask my gazzionaire brother to help out on a second, but then I have to listen to his wife whine about how everyone thinks they're an ATM (most of my family does). I'd rather not go there either.
Another option is to wait for the listing to expire and then approach the owners with my offer. If I do that am I breaking any laws, or does it even matter?
What about the price? Is it an insult going that low? They would've got the $800K if they had put the home on the market a year earlier. We're talking about a 5BR/3Ba 2900 sq ft home with a nice veiw, built in the mid 80's. The only downside is that it only has a 2 car garage.

djunkie
04-03-2007, 10:39 AM
What about the price? Is it an insult going that low? They would've got the $800K if they had put the home on the market a year earlier. We're talking about a 5BR/3Ba 2900 sq ft home with a nice veiw, built in the mid 80's. The only downside is that it only has a 2 car garage.
If you only knew what $800k gets you around here. :cry: :cry: :cry:

Jyruiz
04-03-2007, 10:44 AM
I would wait till the listing expired and make them an offer, the worst they can say is no. If they do say no, ask them what there counter offer is. In this market right now, you never know.

ChumpChange
04-03-2007, 10:45 AM
If you'd like, I can get you the owners information if you'll PM me the address.
What is a low offer? Nothing really. In this market, a buyer can either drop their price or ride the market down by lowering little by little. Either way, it seems to end up at the same selling price.
If you're going to have your GF move in with you, don't buy the house with her, just have her 'rent' from you. That way, if things go south, there is no fighting about the house.

djunkie
04-03-2007, 10:47 AM
If you're going to have your GF move in with you, don't buy the house with her, just have her 'rent' from you. That way, if things go south, there is no fighting about the house.
Excellent advice. This is what I will be doing. :D :D

Ms.Havasu
04-03-2007, 10:48 AM
You are not breaking any laws approaching the owner after the listing expires. Ethecally (sp) if an agent showed you the home then the seller would be obigated to pay the agent the commission.(the agent would be the procurring cause). Even if the listing expires, if an agent showed you the home then the seller owes the commission to the agent. But as long as you have never viewed the home with an agent the seller can sell to you when the listing expires without paying a commission.

SB
04-03-2007, 10:54 AM
Feel free to make them a low ball offer and let them think about it. I'm sure others have.

Donttreadonme
04-03-2007, 10:58 AM
Actually if you are not a licensed agent or a licensed broker you don't have to wait until the listing expires. You can go directly to the owner and bypass a listing agent any time you want. It depends on what type of listing the agent has with the owner whether or not the agent gets paid or not...
Ms.Havasu has it partially correct. It depends on the time frame that the listing agent has in the listing agreement. For example what happens if an agent showed you a house last year and now you want to buy it, a year has passed, does the agent still get the commission? Most likely not, but depending on their original listing agreement they could.

CBadDad
04-03-2007, 11:11 AM
So I don't have to wait for the listing to expire to contact the owner? I'm a patient person...one of my many downfalls, but I won't mind waiting for the listing to expire, I just don't want to compromise the deal.
My feeling is that if I wait a year, there will be many deals like this at this price. I am just ready to buy a home and stop renting and if I can do this now, instead of waiting a year all the better.

dumbandyoung
04-03-2007, 11:19 AM
pm me the address, Ill try and run a quick sales comp for you.

All-Star
04-03-2007, 11:20 AM
So I don't have to wait for the listing to expire to contact the owner? I'm a patient person...one of my many downfalls, but I won't mind waiting for the listing to expire, I just don't want to compromise the deal.
My feeling is that if I wait a year, there will be many deals like this at this price. I am just ready to buy a home and stop renting and if I can do this now, instead of waiting a year all the better.
And if it is in the area that you wanted then go for it. I know how important that is for you. You will be fine. I say Do it!!! But I am a gambler just naturally.:D
Check your PM.

Outnumbered
04-03-2007, 11:20 AM
Actually if you are not a licensed agent or a licensed broker you don't have to wait until the listing expires. You can go directly to the owner and bypass a listing agent any time you want. It depends on what type of listing the agent has with the owner whether or not the agent gets paid or not...
I vote for this answer. I've been in the business for about 18 years. Used to be a licensed agent in CA too.

abraman1326
04-03-2007, 12:17 PM
Just be sure that if you do decide to go in and look at the home during an open house that you don't sign the guest book. Then the selling agent doesn't have any right to you as a buyer. Most of the contract my office writes for listings include a clause that if you sell the home to someone who we have showed the property to, we are entitled a commission. Be sure that when you give them the low ball offer you tell them about the $$ they are saving in broker fees as well. Keep us posted...
BRA

Ziggy
04-03-2007, 12:21 PM
Recently I learned about a deal where the listing agent never presented some offers that were made on a home and ended up selling to a lesser offer. When the owner was then contacted directly by the other person who made the higher offer it turned into a big mess because all docs for the lower offer had been signed/sealed/delivered.
.
Try contacting the owner if you can CBD

essexjet
04-03-2007, 12:25 PM
I can run a title report in which it will give the owner name and mailing address along with the site address. Shoot me a PM if you would like it.

djunkie
04-03-2007, 12:30 PM
Hey CBD, just curious but how many PM's have you received since you started this thread? :D :D

GHT
04-03-2007, 12:35 PM
There is a house down the street from me that I really would like to buy. It is empty and has been on the market for over a year. It started out at $800K and then went to "entertaining" offers between $749K to 799K. That agent did nothing and the listing expired. Another agent listed it shortly there after and the asking price came down to $699K to 749K. I think that listing is about to expire as they've lowered the price again and have been holding open houses every weekend. This time it's down to $679K.
I have never been inside the house and have not spoken to any agents about the house. I've only looked at the flyers and some internet searches to learn what I can. What I want to do is go to the county records and find out who owns the home. From talking to my neighbors, the husband passed away a few years ago and his wife moved into a convalescing home. She may have since passed away and it now it is possibly owned by the kids. I'm not sure.
It still is about $100K above my price range. So I have a few options. My GF would love to move in with me and then I (we) could afford it. I'd rather not, but it is an option. I could also ask my gazzionaire brother to help out on a second, but then I have to listen to his wife whine about how everyone thinks they're an ATM (most of my family does). I'd rather not go there either.
Another option is to wait for the listing to expire and then approach the owners with my offer. If I do that am I breaking any laws, or does it even matter?
What about the price? Is it an insult going that low? They would've got the $800K if they had put the home on the market a year earlier. We're talking about a 5BR/3Ba 2900 sq ft home with a nice veiw, built in the mid 80's. The only downside is that it only has a 2 car garage.
Not going to get into exact amounts but I just purchased another home in Havasu and did just exactly what you are talking about. The house was on the market for a year and they had already dropped from the original asking price by about 12 - 13%. I offered them a price that was an additional 12% from their already reduce price and told them I wanted them to pay all my closing cost. AND THEY WENT FOR IT! Is it insulting? Hell NO I saved a Sh1t load of money and as soon as the market kicks back into gear I'll be sitting pretty. If I were you I would put in the offer and if they say no then no harm no foul but, they may say yes.
:idea:

SHOTKALLIN
04-03-2007, 12:35 PM
Its possible that the home is paid off or near paid off. If the kids own it they may just want to sell it quick. Good luck with the low ball offer.

acatitude
04-03-2007, 12:47 PM
you can as said contact the owner directly , however they probably have a listing agreement with an agent, which means they will probably have to pay a commossion to the agent either way. most list agreem. have a 90 day clause for people the agent showed the house to and they have to give that list to owner within 10 days of expiring contract. Id just wait till list agree ran out approach owner and remember if he was going to pay a 6% comm. , you wont be giving a low ball offer if you offer what the low asking price was minus the 6 % cuzz thats all they wouold have netted anyways.... go for it .

DaddyMack
04-03-2007, 12:57 PM
Actually if you are not a licensed agent or a licensed broker you don't have to wait until the listing expires. You can go directly to the owner and bypass a listing agent any time you want. It depends on what type of listing the agent has with the owner whether or not the agent gets paid or not...
.
Actually, wait till expiration. Most likely they have a listing agreement that makes the seller pay commission if anyone buys it during the listing period, or someone that contacts them during the listing period buys it within a certain period of time after expiration of the listing.
Then make an offer of what you are willing to pay, no insult to worry about, they either accept, reject it or counter it.

CBadDad
04-03-2007, 01:01 PM
Hey CBD, just curious but how many PM's have you received since you started this thread? :D :D
I have had a few and I now have the owners info. Thanks to everyone for all of their help. I'm gonna follow up on it and I'll let everyone heer how it goes. Thanks agin.
BTW, Carlsbad had the highest home appreciation in america from 2002 to 2005 (according to Forbes). That should also equate to the greatest percentage decline in the coming few years. I have said before on here that I be believe that the RE market will decline by 25% on an average. I am going to ask for closer to 30% less than what the market high was for this house. Wish me luck.

CBadDad
04-03-2007, 01:05 PM
Recently I learned about a deal where the listing agent never presented some offers that were made on a home and ended up selling to a lesser offer. When the owner was then contacted directly by the other person who made the higher offer it turned into a big mess because all docs for the lower offer had been signed/sealed/delivered.
.
Try contacting the owner if you can CBD
That sucks. I thought that by law that the agent had to present all offers to the seller. I hope that the RE agent has to pay the difference to the seller. The buyer is most likely SOL. :mad:

abraman1326
04-03-2007, 01:05 PM
Good luck. I hope it all works out for you.

H20 Toie
04-03-2007, 01:44 PM
The house i just bought i offered $100k less then they were asking and they countered with $50k less but i declined, they took the $100k :)

Outnumbered
04-03-2007, 01:54 PM
You know the saying, you szooze you loose. Don't wait. The day that listing expires there will be 10 agents beating his door down to re-list it.
Just be sure to read the listing agreement fine print regarding the commissions in the event of a sale to a non-represented third party. Don't assume the agent covered his ass. You could loose out on a deal and you will kick yourself when another investor snaps it up. Just be careful and have a RE attorney review the deal if you are not comfortable. Just CYA.
Good luck.

Baja Big Dog
04-03-2007, 01:56 PM
The house i just bought i offered $100k less then they were asking and they countered with $50k less but i declined, they took the $100k :)
hummmm Now you know where the term "Money talks...bullshit walks" came from.
Think it might be a buyers market???:jawdrop:

CBadDad
04-04-2007, 05:48 AM
Think it might be a buyers market???:jawdrop:Ya think?

riverroyal
04-04-2007, 05:55 PM
ever look in my neighborhood???San Elijo Hills,compared to carlsbad address,its a deal.For 600 to 700k out here you can get very nice homes with new schools.....Pm me if you want,ive been here in san elijo for 5 years,2nd house

CBadDad
04-05-2007, 12:45 PM
RR, you live in a nice area, but I gotta stay in Olde Carlsbad because of my kids situation.
The house owner passed away last year (that's why the place has been empty) and is now owned by his Trust, which the executor is his sister. I have her address, but her number is unlisted. So my question is, should I just write her a nice letter and see what happens, or should I knock on her front door?

riverroyal
04-05-2007, 05:31 PM
RR, you live in a nice area, but I gotta stay in Olde Carlsbad because of my kids situation.
The house owner passed away last year (that's why the place has been empty) and is now owned by his Trust, which the executor is his sister. I have her address, but her number is unlisted. So my question is, should I just write her a nice letter and see what happens, or should I knock on her front door?
what the worse that could happen????Old cbad is great,Im at Fidels all the time