Unsolicited Offer on My House

[Craig T]

I ran into a realtor who specializes in our community while walking Tank last week. I told him we were planning to list the house at the end of summer. He called today saying he has a buyer who needs the five car garage and RV pad and wants to put in an offer on our house. He's coming to look inside the house tomorrow at 11:00.

Is this a bait-and-switch ploy realtors play in order to secure the listing?

If it's real, what the hell do I do? My wife can't retire until the end of this year. I'll have to rent something for 12 months, and that ain't gonna be easy with a 150 lbs dog. Around here, a 1,500 sq ft dump will be more to rent than our house payment. We'd have to go small and stick half our crap in storage.

On the other hand...the real estate market is cooling down and interest rates are climbing. Maybe I better figure it out and not look a gift house in the mouth.

[look 171]

Craig, try and rent it back from them until she retires.

[Baz]

Originally Posted by look 171

Craig, try and rent it back from them until she retires.

+1

This would be ideal.

Good luck, mon!

[Rtrorkt]

also, pay only the buyer's commission, not the entire fee

[MikeSid]

Unless the realtor offered to waive or reduce commission, this is just a play for a listing.
The buyer that supposedly exists (needing the 5 car garage, RV pad, etc.) is out there whether or not you list the house for sale with another agent. So why would you limit the competition for your house?

Decide if you want to sell irrespective of this pitch. If you want to sell, list the house for sale on the open market. Require a lease back as a condition of sale.

If the realtor's offer contained some incentive, since they'd be getting both ends of the commission on this deal, then reevaluate. But with no shaving of commission, this benefits no one but the realtor.

[Tobra]

^this^

[speeder]

Originally Posted by Rtrorkt

also, pay only the buyer's commission, not the entire fee

Originally Posted by MikeSid

Unless the realtor offered to waive or reduce commission, this is just a play for a listing.
The buyer that supposedly exists (needing the 5 car garage, RV pad, etc.) is out there whether or not you list the house for sale with another agent. So why would you limit the competition for your house?

Decide if you want to sell irrespective of this pitch. If you want to sell, list the house for sale on the open market. Require a lease back as a condition of sale.

If the realtor's offer contained some incentive, since they'd be getting both ends of the commission on this deal, then reevaluate. But with no shaving of commission, this benefits no one but the realtor.

I'm not an expert on the particulars of RE commissions but it seems like Craig should not have to pay that agent anything since he did't hire him. He's working for the buyer's fee, right?

And what everyone else said, if you take the offer, make it contingent on you staying until an agreed date. And whatever you do, make damn sure you're really netting top dollar on it. If you put it on the open market, at least you know for sure that you got what you could for it.

I have a couple of friends who overpaid for high-end houses in recent years in L.A., IMO and because they could not turn around and sell them for what they paid a year or two later when they changed living plans. That is not supposed to happen in SoCal these days and I'm talking before rates started going up.

I think that their RE agents told them they were getting a good deal, (market value), when they really just did not want to put in a lower offer because they wanted the sure commission. Only relation to your situation is the subject of games RE agents play.

[look 171]

Originally Posted by speeder

I'm not an expert on the particulars of RE commissions but it seems like Craig should not have to pay that agent anything since he did't hire him. He's working for the buyer's fee, right?

And what everyone else said, if you take the offer, make it contingent on you staying until an agreed date. And whatever you do, make damn sure you're really netting top dollar on it. If you put it on the open market, at least you know for sure that you got what you could for it.

I have a couple of friends who overpaid for high-end houses in recent years in L.A., IMO and because they could not turn around and sell them for what they paid a year or two later when they changed living plans. That is not supposed to happen in SoCal these days and I'm talking before rates started going up.

I think that their RE agents told them they were getting a good deal, (market value), when they really just did not want to put in a lower offer because they wanted the sure commission. Only relation to your situation is the subject of games RE agents play.

One thing about this market is that if a lower offer is made, its just a waste of time and effort. Buyer is just not going to get the house. The tricks they play and has been for a long time is to list it way (you can determine that) low and take offers and only look at top ten and go back to those ten to create a bidding war. Most serious buyers know that they have been at it for 6-9 months, sometimes more, writing offers over asking and getting beat up physiologically. So they find a house they really like, they write one big offer and kill off all competitors making that their dream home. Driving up the market all the time. Agents know that emotional roller coaster. Some take advantage of it

[sammyg2]

Iffn I was you (and you're glad I'm not) I'd work it on MY SCHEDULE and not the realtor's schedule.
When you are ready to sell and move, put the house up for sale. I seriously doubt we'll run out of realtors or house buyers by then.

OR if you really have the itch, counter their offer with an extra $50k or so just to see if they flinch. Whatever it takes to make it worth it.

And if you do, make the listing good for 24 hours ONLY.
You can do that! that way if he has a real buyer he'll step up, otherwise it's all BS.


YMMV, this advice is worth every penny you paid for it.

[look 171]

Craig, what have you gotta lose by talking to him? You know when to say no. I really think he wants his foot in the door, but who knows, he might have a real buyer. Once you have spoken to him, there's a real good chance you will call back when you are ready to sell. He has a better chance at it. I think your bigger head ache is where to settle down?

[Shaun @ Tru6]

There are 10 if not 50 buyers just like the agent described that will buy your house when you want to/need to sell it.

I wouldn't try to time the market. 6 months to a year is a lifetime in these crazy times of market fluctuations, across the board.

[Norm K]

Originally Posted by speeder

I'm not an expert on the particulars of RE commissions but it seems like Craig should not have to pay that agent anything since he did't hire him. He's working for the buyer's fee, right?(

Although everything is negotiable the buyer's fee is typically (as in well over 90% of the time) paid by the seller. That said, if these people really want your home they should be willing to at least participate in that Buyer's Agent fee (of probably some 2.5-3%). Then again, if you can ultimately net the number you want, paying the agent for bringing a qualified buyer to the table isn't all bad.

As for renting the home back from the new owner: could be problematic unless it's a cash deal, as lenders have rules against occupancy agreements of longer than about 60 days, post closing. Break the lender's rule and face possible charges of loan fraud, and FBI level offense.

_

[stomachmonkey]

Midwest is predicted to flip to a buyers market this year with the rest of the country following in 2020.

If it I could sell today I would. Then rent for a couple of years. Just does not jive with logistics right now.

Part of the rational is 2019/2020 is when supply will exceed demand.

Bunch of people are going to age out (die) and there are not enough buyers to absorb the inventory.

THat's what I've heard from several sources over the last year or so.

[Craig T]

Originally Posted by look 171

Craig, try and rent it back from them until she retires.

Geez, I din't even think about that! Thank you. I'll make the proposal. The realtor said they guy was flexible.

I've been looking at the rentals on Zillow. There's actually some good inventory of several things we could live with.

[Craig T]

Originally Posted by Rtrorkt

also, pay only the buyer's commission, not the entire fee

The realtor is a pretty straight shooter. I've known him for 12 years. He said he'd do the deal for 3.75%. I think that's reasonable.

[Baz]

I'm not in the real estate business and am certainly not an expert. But as someone who has bought and sold stuff....sometimes having a good partner in the deal has a great deal of value.

It doesn't mean you need to reduce the price...it just means you can avoid dealing with a lot more of the headaches.

What I'm trying to say is if you find a buyer who goes along with everything - then why look elsewhere?

[Craig T]

I really appreciate the insights from you guys. It's an amazing sounding board for opinions and experience.

The price the realtor gave me today is about $200K more than I thought the house was worth, and he offered up the lower commission. I didn't have to ask for it. I guess the market could be up some, but I still think it's a significant premium over the market value. If the buyer and offer are for real, I'm leaning toward taking it (before Newsom can do any real damage, or force me to take in 12 illegal immigrants...Ooops! I mean asylum seekers).

The realtor just texted back! He said the buyer is flexible enough to give me a 90 day escrow if I need it, but deals fall out in long escrows. I'll propose closing quickly and renting it back tomorrow when he's here, but my gut says to take the money and run. Renting a 12 month transitional place is a PITA, but I'll be in a better position to buy when we do decide where with the cash in hand. Everything is going in storage anyway if we do the RV thing.

My chances of getting any sleep tonight zero to none

[LWJ]

Money talks.

A real offer is a great thing.

Everything else is BS.

If it is a great offer, take it.

Good luck!!!

[spyerx]

Cash offer?
Get an independent appraisal.
And negotiate back that commissions to 2.5%

[Hugh R]

I did something similar 18 months ago, but my neighbor wanted to buy it for his Dad, no tarting up the house, he took it as is. I did split the termite repairs with him, and had a 90 day escrow and 45 day rent back. Use a Good Escrow company to make sure everything is proper.