Offer is in

April 16th, 2008

Today, I decided to submit an official offer on the off-market house I saw yesterday. I am not sure I want the house yet and I definitely need to do some inspections, but my agent’s advice in this case is good: go ahead and lock it up under contract and then spend the next week deciding if you really want it.

Unfortunately, I don’t agree with my agent’s advice on the price I should bid, however. I want to come in $150,000 less than what the seller wants. My agent doesn’t think I should come in more than $50,000 below. This illustrates another reason why I think the value of real estate agents is overrated: their motivation is to get you a house as quickly as possible at any price that is comfortable to you (and thus collect a nice commission). My motivation is to get a house that I want at as low of a price as possible. If I bid $150,000 less than the ask, the seller can always say no and then I can come up quickly to his price, if need be.

So that’s what I just did. We’ll see what happens.

One Response to “Offer is in”

  1. Andy Borgmann Says:

    their motivation is to get you a house as quickly as possible at any price that is comfortable to you (and thus collect a nice commission). My motivation is to get a house that I want at as low of a price as possible.

    This is the one mistake I feel I made in the purchase process of my home. I was 25, buying my first home, and I let the real estate agent coach me too much on the price. If I ever do this again, I am going to #1 be more patient, and #2 bid the price I want to pay.

    Remember, you don’t usually make the money on a property when you sell it, you make it when you buy it.

    Ohh and note #2 on this topic. The price they paid for the property should be completely irrelevant. The fact that I wanted to pay $165,000 for a property that the previous owner paid $170,000 five years ago shouldn’t keep me from biding $165.

    #1 - September 5th, 2008 at 9:58 am