Doran Posted September 13, 2008 Share Posted September 13, 2008 Remember the house we were about to purchase? It was just yesterday. The house was in foreclosure and had been so for at least a month. It was on the market before that, as a regular sale, for at least a year. Not one bite. Not a bit of action. Nadda. Zilch. So, today, we make an offer today and MINUTES afterward -- I'm talking less than an hour after I've given our signed contract to the realtor -- we get a call saying, "Oh, what a shame, there's been another offer. It was made by an investor." The realtor wants to know if we would prefer to just go ahead and offer the asking price. They can't tell us anything about the counter offer except that it's likely we'll be asked to put in our highest bid in hopes that it will still be the highest bid against what the investor bids. I want to believe it is just a bizarre coincidence. But, it's so darn strange. :glare: Quote Link to comment Share on other sites More sharing options...
Tracy in Ky Posted September 13, 2008 Share Posted September 13, 2008 Sounds fishy to me. I'll be there is no invester. They just want more money, and are trying to see how high you will go. Quote Link to comment Share on other sites More sharing options...
Pam "SFSOM" in TN Posted September 13, 2008 Share Posted September 13, 2008 Remember the house we were about to purchase? It was just yesterday. The house was in foreclosure and had been so for at least a month. It was on the market before that, as a regular sale, for at least a year. Not one bite. Not a bit of action. Nadda. Zilch. So, today, we make an offer today and MINUTES afterward -- I'm talking less than an hour after I've given our signed contract to the realtor -- we get a call saying, "Oh, what a shame, there's been another offer. It was made by an investor." The realtor wants to know if we would prefer to just go ahead and offer the asking price. They can't tell us anything about the counter offer except that it's likely we'll be asked to put in our highest bid in hopes that it will still be the highest bid against what the investor bids. I want to believe it is just a bizarre coincidence. But, it's so darn strange. :glare: Stick to your price. If it's meant to be, it will be. Quote Link to comment Share on other sites More sharing options...
lynn Posted September 13, 2008 Share Posted September 13, 2008 Remember the house we were about to purchase? It was just yesterday. The house was in foreclosure and had been so for at least a month. It was on the market before that, as a regular sale, for at least a year. Not one bite. Not a bit of action. Nadda. Zilch. So, today, we make an offer today and MINUTES afterward -- I'm talking less than an hour after I've given our signed contract to the realtor -- we get a call saying, "Oh, what a shame, there's been another offer. It was made by an investor." The realtor wants to know if we would prefer to just go ahead and offer the asking price. They can't tell us anything about the counter offer except that it's likely we'll be asked to put in our highest bid in hopes that it will still be the highest bid against what the investor bids. I want to believe it is just a bizarre coincidence. But, it's so darn strange. :glare: This happened to us all the time. House sits for months we show interest and it gets 2 other offers. You can call their bluff and go on with you offer and see what happens. Quote Link to comment Share on other sites More sharing options...
Mom to Aly Posted September 13, 2008 Share Posted September 13, 2008 We almost bought a house 14 years ago where half of it was built illegally, and if we'd bought it and it had been reported, half of it would have had to have been torn down. The inspector never told us, and it was something he had no liability for--he was recommend by our realtor, who also had no liability, and knew about it. We found out two days before closing, and she was furious because we refused to buy it! So, yes, I think a good majority are out to get whatever they can, no matter how they can do it! I would wait and see what happens. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted September 13, 2008 Share Posted September 13, 2008 I don't know about any other Realtors, but I know better than to trust the brand-name Realtor in this town. Quote Link to comment Share on other sites More sharing options...
JenParrish Posted September 13, 2008 Share Posted September 13, 2008 What state are you located in? Is there buyer's agency in your state? Are you working with the realtor that has the house listed? If you are working with the agent, who has the house listed, she can not tell you any information about the other offer in NC (where I am at). She can only tell you to put your best offer forward. If you are working with a buyer's agent, she is suppose to be representing you and I doubt a buyer's agent would lie about an additional offer. She wants you to be able to get the house as much as you want it. I have seen properties sit for long periods of time and then end up in a bidding war with 3 or 4 people trying to purchase the same house. Foreclosures are tricky in and of themselves with a bunch of details in the contracts you need to pay attention to. Good Luck. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 13, 2008 Share Posted September 13, 2008 Doran - I can't tell you how many times this has happened to us in the last few weeks. Most of these investors come in with cash and as they say, Cash is King! Aaagghhh!!! So frustrating! Quote Link to comment Share on other sites More sharing options...
Hillary in KS Posted September 13, 2008 Share Posted September 13, 2008 I think there are just as many unethical realtors as there are unethical people in any other line of work. Just do your homework on them: get references, ask friends and co-workers, etc. Check them out before you pick one. :) Quote Link to comment Share on other sites More sharing options...
lwilliams1922 Posted September 13, 2008 Share Posted September 13, 2008 google the board of realtors for your county. Ask them to to check the status of the listings and offers. No crooked agent wants to know someone may catch them in unethecial practices. Quote Link to comment Share on other sites More sharing options...
lwilliams1922 Posted September 13, 2008 Share Posted September 13, 2008 google the board or realtors in your county ask them for the listing info as well as the status of offers. No shady realtor wants their board asking questions if they are doing something unethical. Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted September 13, 2008 Share Posted September 13, 2008 I think there probably is an investor that has been sitting on the sidelines, waiting for the Realtor to call and tell him that there's an offer for x amount, do you still want this house? Now, if you refuse to give a counter offer, the Realtor will go to the seller and say, you've had two offers and one is an investor who's low but has cash. I think there are Realtors in bed with investors that wait for this very thing. The investor wants the house and the Realtor strings the seller along until they are ready to sell to the investor. We started out with a Realtor like that and when we figured out he was crooked, we switched to one that was top dollar, but he's 100% ethical. I felt stupid for not using him in the first place. He's worked with 2 of my friends and was fabulous, I was just trying to save a buck. Take the advice of the other ladies, but also ask any Realtor you call for references on recent home sales. If no one is willing to give him/her one, that speaks volumes. Blessings! Dorinda Quote Link to comment Share on other sites More sharing options...
Kris Posted September 13, 2008 Share Posted September 13, 2008 I think there are just as many unethical realtors as there are unethical people in any other line of work. :iagree: I also agree with "call their bluff." If that's "your house," it will be your house. If it isn't, you've probably dodged a bullet you'll never know about. :) Quote Link to comment Share on other sites More sharing options...
Michelle in AL Posted September 13, 2008 Share Posted September 13, 2008 This happened to us a couple of yrs ago. A house was on the market when we were moving here that was at the top of our price range. It was beautiful. Owned by a restoration dealer (as in restoring old wood, doors etc). It had old pine floors from an old hospital in our state, wood doors from Louisianna, beautiful wood mantles, modern kitchen and it was on a river. We passed it by because the road to the neighborhood flooded with hurricanes and dh has to go to work in hurricanes. A year later, we were thinking about upgrading from what we bought and thought was a "temporary" home~we're still in it 5 yrs later. Our realtor, who we thought was a "friend" called and asked if we wanted to see it again. We did. We loved it again. He told us they would take about $100,000 less than asking price. We went home to think about it. That night he called to tell us another person from California, was putting in an offer that night. My husband told him, he wouldn't be pressured and that we wouldn't make an offer. The realtor called 3 times that night. The last time was to say, "just make an offer, any offer." We found out the next week, that the listing for that agency was up the day after we looked at it and the owner didn't renew. He sold it by owner a couple months later. Our realtor was probably trying to "save" the listing for his company. Quote Link to comment Share on other sites More sharing options...
WTMindy Posted September 13, 2008 Share Posted September 13, 2008 So, what happened, Doran?! Quote Link to comment Share on other sites More sharing options...
Remudamom Posted September 13, 2008 Share Posted September 13, 2008 Oh dear, you need my momma. (Yes, I have a mother, quit laughing). Her clients name babies after her. Quote Link to comment Share on other sites More sharing options...
Jennifer3141 Posted September 13, 2008 Share Posted September 13, 2008 I only know one realtor. She's married to my idiot cousin and a coke addict. She's apparently one of the top realtors in that part of Michigan but I couldn't stand to be in a car with her looking at houses for more than 4 minutes. I've heard through the family grapevine that it drives her insane that we don't go to her for property help. But I'm not driving around with someone who sneezes cocaine!!! It just isn't going to happen. :glare: Jen Quote Link to comment Share on other sites More sharing options...
Jenne Posted September 13, 2008 Share Posted September 13, 2008 We had a wonderful realtor when we bought our house in Texas (small, local agency, well-established in town.) I expect our next experience will be just as pleasant (we're VA buyers, so we have some additional protections from the VA regulations we have to follow.) However, I would be extremely leery of buying a foreclosure home. I would worry about unknown problems with the title (the reason you need title checks and title insurance.) My personal inclination when competing against an "investor" is to back away with hands up. I'll never have the money to compete with them. Quote Link to comment Share on other sites More sharing options...
Brigitte Posted September 13, 2008 Share Posted September 13, 2008 So, what happened, Doran?! :bigear: Quote Link to comment Share on other sites More sharing options...
Sweetpeach Posted September 13, 2008 Share Posted September 13, 2008 Who is the agent representing? Buyer or Seller's agent? Was the offer presented or did your agent give the head's up phone call that an offer was coming down the pipes? It does sound fishy Doran. I agree with the others - make your offer and let the chips fall where they may. This won't be the first fabulously priced foreclosure that comes your way. More than that, it's not your absolute dream house. It's a house you'll enjoy IF the price is right. Good luck. Let us know how it plays out . . . Quote Link to comment Share on other sites More sharing options...
klmama Posted September 13, 2008 Share Posted September 13, 2008 If you want the house, there's nothing wrong with sticking by your offer. I know when we bought our house we were told as we were sitting down to write up the offer that someone else was making an offer, too. I trusted our realtor, but I honestly think the seller's realtor may have made it up in an effort to get a higher price from us. Our realtor asked us if we wanted to offer more than we were (several thousand less than asking price), and we said no. One thing she did suggest, though, was that we write a letter to the owner telling a little about ourselves and why we hoped to purchase the house. Apparently, sometimes people put their emotions about their homes ahead of the bottom line, thinking it's better to sell the house to a family that wants to live in it forever than to an investor that will turn it into a rental or just resell it in a year or two. We did write the letter, and we got the house. I have no idea if there really was another offer or not. I hope things work out for you soon, either with this house or another one that's even better for your family! Quote Link to comment Share on other sites More sharing options...
Michelle in MO Posted September 13, 2008 Share Posted September 13, 2008 Remember the house we were about to purchase? It was just yesterday. The house was in foreclosure and had been so for at least a month. It was on the market before that, as a regular sale, for at least a year. Not one bite. Not a bit of action. Nadda. Zilch. So, today, we make an offer today and MINUTES afterward -- I'm talking less than an hour after I've given our signed contract to the realtor -- we get a call saying, "Oh, what a shame, there's been another offer. It was made by an investor." The realtor wants to know if we would prefer to just go ahead and offer the asking price. They can't tell us anything about the counter offer except that it's likely we'll be asked to put in our highest bid in hopes that it will still be the highest bid against what the investor bids. I want to believe it is just a bizarre coincidence. But, it's so darn strange. :glare: that comment alone would give me great pause for concern. I wouldn't say that all realtors are unethical---we've had very good experiences in the past with realtors. However, in another town we did make an offer on a house. The realtor there said almost the exact same thing and urged us to offer full price. In our case, we did (it was a dumb decision on our part) and we regretted buying that house. We didn't stay there long---there was a lot of pressure from that particular realtor to buy the house, to buy it that weekend, etc. etc. We should have known better, but thankfully that mistake is just part of our past. FYI, this realtor was a buyer's broker. I wouldn't let that sway you one way or another. After this hard-earned lesson, both dh and I came to the conclusion that, when push comes to shove, all realtors are really seller's brokers. They only make money on the sale of the house. The others have given you excellent advice. Check the reputation of the realtor; check the realtors' board and find out if there have been any ethical complaints against this realtor. I agree with Pam "SFSOM" in TN: if it's meant to be, it will be. When we asked that particular realtor who made the offer, of course they couldn't disclose that to us or give us any additional information. I would say that's probably true---nevertheless, we should have smelled something fishy at that point, but we didn't. I hope this is not the case in your situation; I hope that you and your dh find the right house--even this house--and have a great experience with it. BTW, I'm not trying to say, by implication, that if you and your dh do decide to buy this house that you're making a mistake. Think on it for a while and go with your "gut", would be my best advice. Best wishes to you! Quote Link to comment Share on other sites More sharing options...
Doran Posted September 13, 2008 Author Share Posted September 13, 2008 I appreciate the feedback. Although the purchase of a house to live in would be a first for us, we have purchased property in the past - first the lot we've owned for some years, next dh's business property which dh bought four years ago. He has a good handle on the basic process, thus I am not especially fearful of being swindled in a way that will hurt us long term. If we get swindled out of this house, it will be unfortunate on some level, but I'll just presume, then, that there was a reason we weren't supposed to have it. Dh is clear - he says he's not playing the game. We have some conditions in the contract that ask the seller (bank) to cover closing costs and/or a one year homeowner's insurance policy. Those are the only things that dh is willing to bargain away. But, the price we've offered, he says, is firm. I'm glad he's so solid on this. He thinks the realtor is in bed with "an investor" (possibly another realtor, or a friend?) as was mentioned here. Someone who waits in the sidelines for a real offer, then swoops in with a counter offer just so the realtor can get a better commission. I guess my post was more one of frustration that it has to come to this and wishing things like this didn't have to happen. This agent is representing us, not the seller. She is not the listing agent, but the listing agent is with the same realty company. We contacted this realtor because we know her personally, but that doesn't mean we would never suspect her of shady dealings. So, we'll see. She still talks a good talk, as if she's all about making this deal happen for us. So, who knows. Time will tell. At this point, we won't know anything until at least Monday, possibly longer. Onward! :driving: ETA: I want to also be clear that I never meant to imply that all realtors are crooks. But, as I said in my title, "many" do seem to wear that label well. Quote Link to comment Share on other sites More sharing options...
Kris Posted September 13, 2008 Share Posted September 13, 2008 Dh is clear - he says he's not playing the game. We have some conditions in the contract that ask the seller (bank) to cover closing costs and/or a one year homeowner's insurance policy. Those are the only things that dh is willing to bargain away. But, the price we've offered, he says, is firm. I'm glad he's so solid on this. He thinks the realtor is in bed with "an investor" (possibly another realtor, or a friend?) as was mentioned here. Someone who waits in the sidelines for a real offer, then swoops in with a counter offer just so the realtor can get a better commission. It's so great that the two of you have "set your feet" on this -- no matter where you put them! Having a line drawn really helps when things get more complicated and you have to make decisions -- sometimes emotional ones, which a house purchase can be! I don't know why, but I was thinking about this while I was in the shower -- I know, I know -- TMI. I know you didn't mean *all* realtors are unethical, but I just think it's so unfortunate that salespeople in all fields generally have a "bad rap." It doesn't take too many bad apples to create that perception. What the "bad ones" consider part of the "negotiation process" involves lies and deceit. Why lie? Why make up a story (as someone else posted -- maybe on another thread?) about other offers on the table, etc., etc. -- does it really work often enough to make it worthwhile? That person lost a sale because of it -- and the listing. I can only imagine it works more often than not, or they wouldn't be doing it. But that one -- it could have been a win/win and instead the realtor lost the sale, the people lost the house. The owner eventually sold it, but -- I don't know. I have had salespeople, when they were confronted about untruths, tell me it was "just part of the negotiation process." I just *cannot* abide a liar and, to me, there's no other label for it. But maybe that's the only way they can justify it. Quote Link to comment Share on other sites More sharing options...
Sweetpeach Posted September 13, 2008 Share Posted September 13, 2008 She is not the listing agent, but the listing agent is with the same realty company. I didn't want to ask if it were an in-house deal but I suspected. There are no secrets "in house." sigh. Keep us posted - I really want to know how this plays out! Fingers crossed. Quote Link to comment Share on other sites More sharing options...
Jennifer3141 Posted September 13, 2008 Share Posted September 13, 2008 Doran, I think it's neat how aligned you and your DH are on this decision. I have to believe that it will all go your way in the end. Jen Quote Link to comment Share on other sites More sharing options...
melissel Posted September 13, 2008 Share Posted September 13, 2008 After this hard-earned lesson, both dh and I came to the conclusion that, when push comes to shove, all realtors are really seller's brokers. They only make money on the sale of the house. This is so true. The more the house sells for, the more they make. I know you didn't mean *all* realtors are unethical, but I just think it's so unfortunate that salespeople in all fields generally have a "bad rap." It doesn't take too many bad apples to create that perception. What the "bad ones" consider part of the "negotiation process" involves lies and deceit. Why lie? Why make up a story (as someone else posted -- maybe on another thread?) about other offers on the table, etc., etc. -- does it really work often enough to make it worthwhile? That person lost a sale because of it -- and the listing. I can only imagine it works more often than not, or they wouldn't be doing it. Yes, the ethics of most of the salespeople I know are little wobbly. It's depressing. My DH has been a real estate agent for 6 years now. He's one of the few I know of with good ethics, which explains why he doesn't make a whole lot of money at it. He worked in Hoboken (outside NYC) selling and renting real estate for several years, and oh my! That was quite the education for both of us! Though I will say that in a few cases, our realtor knew better than we did how to make a deal happen and was able to bump us to the right people in a slightly unethical way. If he hadn't, we'd still be sitting here waiting for Citibank to put together our mortgage papers :glare: Regardless, Doran, everything happens for a reason. I hope you get the house, but if you don't, I'm sure there's something better just around the corner. Good luck, and good for you for standing your ground. Quote Link to comment Share on other sites More sharing options...
Carol in Cal. Posted September 13, 2008 Share Posted September 13, 2008 But I also know that they are out for themselves, and I accept that. The good ones really work hard. They show you lots of homes. They listen when you tell them what kinds of places you would consider. They point out pros and cons. They help you with price without being pushy about it. They find comparables and let you know how those differ from the house you are looking at. OTOH, even with a realtor I trust, I check on them. I go look at those supposed comparables. I discuss their locations with the realtor. I go to open houses in the same neighborhood. I check local home sale prices and drive by those houses, too. I go to open houses without them and keep my finger on the pulse of the local market--is it rising or falling? Are there more desirable little subareas? I don't expect a realtor to know everything about the neighborhood that I will likely live in for the following 15 years or more. The choice of a home is too big a deal for me to leave it to someone else. So is the contract and its terms. I would sit tight on the price. I think that it's all part of the game. If you get it you get it, and if you don't you don't. Quote Link to comment Share on other sites More sharing options...
Doran Posted September 13, 2008 Author Share Posted September 13, 2008 I don't expect a realtor to know everything about the neighborhood that I will likely live in for the following 15 years or more. The choice of a home is too big a deal for me to leave it to someone else. So is the contract and its terms. My husband's father has spent a lifetime investing, not in the stock market, but in real estate on Long Island. He is by no means a rich man, but he has acquired and managed to hold onto a small handful of properties there which will serve as his retirement fund. He reads the real estate/property listings every day, and by association, my dh (and his siblings) learned to do the same. My guy knows every house that is for sale within our price range in this town. He often knows (or knows where to find) the original price and subsequent sales prices. His father's business, at which my dh worked as a young man, offers architectural and home inspection services, so dh knows what to look for when buying a home, and he understands real value. His judgement - not mine - led us to purchase our lot 15 years ago, when we had barely two nickles to rub together (some things don't change! :D). I thought the man had lost his mind! But, here we are today with a property worth four times what we paid for it. So, I feel grateful and safe in these negotiations alongside my spouse. :001_smile: Quote Link to comment Share on other sites More sharing options...
Tracy in Ky Posted September 13, 2008 Share Posted September 13, 2008 Oh dear, you need my momma. (Yes, I have a mother, quit laughing). Her clients name babies after her. You are a funny girl. I'm glad you are on this board :) Quote Link to comment Share on other sites More sharing options...
Doran Posted September 15, 2008 Author Share Posted September 15, 2008 The house got away to the higher bidder. Ah well. It had a fugly bathroom anyhow. :lol: :glare: :001_unsure: :angry: Quote Link to comment Share on other sites More sharing options...
newbie Posted September 15, 2008 Share Posted September 15, 2008 Now you can keep your dream prop., btw, whats a fugly bathroom, do you have pic. examples?:001_huh: Quote Link to comment Share on other sites More sharing options...
Doran Posted September 15, 2008 Author Share Posted September 15, 2008 Now you can keep your dream prop., btw, whats a fugly bathroom, do you have pic. examples?:001_huh: It's a merged word. F + ugly. I'm being fairly rude (sorry). And, no, I didn't take pictures of it. Grumble, grumble, fume. Quote Link to comment Share on other sites More sharing options...
newbie Posted September 15, 2008 Share Posted September 15, 2008 Now I get it, I am so slow, it took me days to figure out tea. Quote Link to comment Share on other sites More sharing options...
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