Real State Agent Is Telling Us To Offer Way More Than They Ask For, Doesn’t Sound Good. Need Advice?

My boyfriend is trying to buy a house for us to move in together. He got an agent couple, they’re really nice but nice doesn’t cut it for me. I’m very skeptical when it comes to money matters.
We saw this house for standard sale with asking price of 240k, our agent said offer 250k so you have a better chance (to me this is a red flag). He says, if it appraises for less, then you’ll pay that. I don’t know how true that is. Now, 2 days after the offer, they tell us “well counter offer is 265k.” Seriously, WTF?!!
sounds so wrong!
We love the house and can’t wait to live with the love of my life, but I don’t want him to get F*cked!
More info: We live in LA County, California. I was looking on zillow says the house was last sold Oct 2012 for like 165K. I know it’s been remodeled, but don’t think that it’s worth 100K in remodeled cost. IDK, I don’t know anything about real state or housing…
I just don’t think this sounds right…

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2 Responses to “Real State Agent Is Telling Us To Offer Way More Than They Ask For, Doesn’t Sound Good. Need Advice?”

  1. taismith says:

    You already said you’re very skeptical when it comes to money matters. This doesn’t really work if you don’t know real estate, or negotiating.
    1. We don’t know how the market is in that area. In a good housing market ANYWHERE, a home will sell for full asking price or more. I sold a home that sold for $300K OVER asking price. So what’s the market like?
    2. Zillow doesn’t mean anything. It generates random numbers with no bearing whatsoever to assessment value or market value. It just gives a general number based on sales and information it thinks it has. If it’s been remodeled, Zillow won’t know. Improvements? Wouldn’t know. Fire? Wouldn’t know.
    3. What you think a home is worth versus its true market value might be two completely different things.
    4. Do you genuinely not trust these agents? If so, then perhaps you should walk away from this deal and go find a new agent you trust completely. Or do you not trust all agents?
    5. The agents are wrong about the appraisal. If the appraisal is less than the agreed upon purchase price, the seller can lower the price to be within the appraisal value (so you guys can qualify for a mortgage), or you can walk away, OR you can accept it as is (if you like the home that much). It doesn’t automatically mean you get to pay the appraisal price.
    6. If you smell something fishy going on, ask for a CMA. Most agents do one anyway when it comes time to writing an offer. A CMA is a comparative market analysis of how much you should offer, where you’ll end up in relation to sales in the past 3 months in the area comparable to that home (relatively same lot size, same SF, relatively same age, etc).

  2. glenbarr says:

    Any investment you don’t understand is a bad investment, even if everyone else thinks it’s a great idea, or even if it IS a great idea. If you don’t understand an investment, you will never feel comfortable with it and it will always worry you regardless of the outcome. (and houses ARE an investment)
    That being said, you need to consider the housing market in your area. And remember the Realtor represents the SELLER, not you. They are NOT some benign entity with no vested interest in the outcome.
    Are houses regularly going for more than the asking price? Are housing prices going up in general? WHY does the Realtor think you should offer more? What are his ECONOMIC reasons? (besides his bigger commission, I mean).
    If the trend in your area is rising prices overall, then you may need to offer more. But if they aren’t going up on a DAILY basis then I would say, pass on the house. There are other houses for sale, and I assure you, the Realtor WILL show you another no matter how obstinate you are!
    Yes, it’s tough to lose out on a house you really like; but in the long run, it is tougher to overpay for a house because you will have to sell it at some point and you don’t want to be under water when you do. Remember, the housing bubble burst exactly because of unthinking buyers paying stupid amounts of money for property not worth the cost.
    When you smell a rat, trust your nose. Don’t let someone tell you it’s not a rat.

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