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So we looked at a house / Realtors are tools


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2012 Feb 16, 12:58am   39,556 views  84 comments

by joshuatrio   ➕follow (4)   💰tip   ignore  

We looked at a house about 3 weeks ago - the asking was $164,000 - short sale.

It was def. on the smaller side, but way cheap for our area and in a decent neighborhood. HOA was $160/mo which we thought was reasonable. Def. rental potential, and we thought it couldn't hurt to look....

Soooo, my wife called the listing agent, and before she could really get two words out of her mouth, the agent says, "we have 5 offers, so if you want the house, you need to make an offer." My wife politely tells her we just want to look at it - listing agent agrees, and sends one of her tool friend/agents to show us the house the next day.

The agent who showed us the property, easily could have been my mother (she had like 30 years on me), but spoke down to me as if she had the ball in her court. What was even funnier was that she drove up in her decked out Cadillac ... 22" chrome ghetto wheels....

SARCASTICALLY she said "we have 3 offers on it - would you like to make one, and who will you be financing with?" (Funny how the number of offers on the property changes, depending on who you talked to...)

I politely said "we will not be financing - if we make an offer, it will be all cash." Immediately her tone of voice changed with me and she went from "mom-mode" to "best friend." Almost begging us to place an offer, because the place was going to sell "ANY SECOND." Anyhow, we thanked her - but told her the place was too small for us.

Three weeks later - after the house should have sold, we get a call from the listing agent, almost begging us to put in an offer. Apparently, they had ONE offer, all cash, for $160k - but upon inspection, the place needed $10k in termite work - and the buyers backed out.

Anyhow, buyers may be playing hardball. A place like this would have sold immediately last year, but here we are, good price, good location, one month on the market, and it didn't sell yet.

Good change buyers may be demanding more and/or are not putting up with the Realtors BS anymore.

Thought I'd share...

#housing

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1   tiny tina   2012 Feb 16, 1:16am  

When I hear stories like this, I have to wonder...if you are the only one left, why don't you put in an offer? I understand you said it was too small, but you also said it was "way cheap" and could be a rental.

2   joshuatrio   2012 Feb 16, 1:26am  

tiny tina says

When I hear stories like this, I have to wonder...if you are the only one left, why don't you put in an offer? I understand you said it was too small, but you also said it was "way cheap" and could be a rental.

We worked the numbers last night. We could make an all cash offer, or with a small bit down, it was favorable to renting for a 15 year note. Not bad. Yes, we even used Patrick's calculator.

But at the same time, I don't want to put $160k down on a place that I'm not sold on. Additionally, we could rent it, but right now I'm not really wanting to be a landlord.

I hate financing anything, debt sucks. We're debt free - no car notes, credit cards, student loans ... zilch. Taking a mortgage or forking over $100k on a place that you're not sold on doesn't seem like the best idea to us.

Additionally, it's getting cheaper. Prices ARE dropping. Why not wait a year, and get what you WANT, and pay just a little bit more? Just a couple thoughts.

3   PockyClipsNow   2012 Feb 16, 1:32am  

You are complaining about realtors these people seem to be honest and open.

1. they told you there were other offers and that appears true
2. The difference in 'number of offers' doesnt mean they are lying people will normally call the listing agent and say 'im gonna submit an offer tomorrow' so that they can wait for it to submit all offers to the owner. (yes this happens when they are not dual agency)
3. They called you back when the other offer fell out so you can buy it.

Whats the issue with the agents? They are doing a great job to sell this house IMO. Everyone at the mall working retail 'is an uneducated idiot' and salesmen of every type are that way - same in RE.

Good luck!

4   joshuatrio   2012 Feb 16, 2:26am  

PockyClipsNow says

You are complaining about realtors these people seem to be honest and open.

1. they told you there were other offers and that appears true

2. The difference in 'number of offers' doesnt mean they are lying people will normally call the listing agent and say 'im gonna submit an offer tomorrow' so that they can wait for it to submit all offers to the owner. (yes this happens when they are not dual agency)

3. They called you back when the other offer fell out so you can buy it.

Whats the issue with the agents? They are doing a great job to sell this house IMO. Everyone at the mall working retail 'is an uneducated idiot' and salesmen of every type are that way - same in RE.

Good luck!

1) The listing agent said they had five offers. Trying to push my wife into panic mode. The agent who showed us the house (who worked for the same office) said there were 3 offers.

They both mentioned all offers were WELL-OVER asking, and that we needed to submit something much higher than list price (forgot to mention that part).

Turns out, there was only one offer, UNDER ASKING !! Honest? No, the toolbags were trying to start a bidding war.

2) Yes it does - they work in the same office - they share information - they are on the same TEAM. An offer should not be considered an offer until it's submitted.

3) They called back because they didn't have 3, or even 5 offers on the table. They lied. And the toolbag came running back to my wife asking her to submit an offer.

The issue? The listing agent jumped on my wife and tried the old "pressure" tactic. They lied, they tried to start a bidding war, then they come back with their tail between their legs asking us to submit an offer. Additionally, being rude and disrespectful to others when they are calling for information is uncalled for - the job of a realtor is to sell a house and provide information.

5   clambo   2012 Feb 16, 2:46am  

What is the address? Inquiring minds want to know.
The response to the baloney "we have many offers already" is correct.
When you hear that you say simply "I am not interested now. I am not interested in bidding against others. thank you."
The chrome wheels sounds like you have an agent who made dough selling to the illegals in places like Seaside, etc.
If I guess correctly you would be wise to avoid her.
The HOA fees can jump up $200/month in the blink of an eye by the way, FYI.

6   clambo   2012 Feb 16, 2:49am  

pay cash $160,000?
You could buy vanguard high yield corporate fund which is paying about 7%.
$933/month wired into your checking account.
Small rental dump? Tying up your dough in a crummy property?
I would not touch that little tar baby, looks sticky to me.

7   joshuatrio   2012 Feb 16, 2:53am  

http://www.realtor.com/realestateandhomes-detail/3080-Crumpton-Ln-8_Marina_CA_93933_M13427-84066

3080 Crumpton Lane #8, Marina, CA 93933

Just outside of Monterey - near work.

clambo says

Small rental dump? Tying up your dough in a crummy property?

I wouldn't call it a dump by any standard, but it it packed in, and needs a complete lift inside.

Bottom line is, I don't really want to tie up a ton of cash in a place that I'm not really "sold" on.

8   tiny tina   2012 Feb 16, 2:56am  

joshuatrio says

Three weeks later - after the house should have sold, we get a call from the listing agent, almost begging us to put in an offer. Apparently, they had ONE offer, all cash, for $160k - but upon inspection, the place needed $10k in termite work - and the buyers backed out.

If that's the case, why didn't they just offer $150k? Or $160k and a $10k credit? If they have $160k in cash, is $10k really going to completely kill the deal or wouldn't someone try to renegotiate. Plus, they were the only offer - would either side just walk away if that's the case? Would the agents let them go when they could possibly get commission on $150k instead of $160k?

Maybe you aren't getting straight info at all, I don't know. Things don't add up to me.

9   joshuatrio   2012 Feb 16, 3:12am  

tiny tina says

Things don't add up to me.

Me neither. Which makes for a strong case against the agent playing games.... They were extremely unprofessional to begin with - so it wouldn't surprise me.

Eventually the agents will get desperate and do whatever it takes to sell a house - unlike what they are doing now.

APOCALYPSEFUCK is Tony Manero says

There were never any offers.

I'm inclined to side with this opinion.

10   bubblesitter   2012 Feb 16, 3:18am  

Just push them. Offer(don't forget to send a copy to owner directly) like 140K and then wait to see what happens. How much was your take home after expenses(at 160K)?

11   waiting_for_the_fall   2012 Feb 16, 3:48am  

sale pending

12   joshuatrio   2012 Feb 16, 4:04am  

waiting_for_the_fall says

Just push them. Offer(don't forget to send a copy to owner directly) like 140K and then wait to see what happens. How much was your take home after expenses(at 160K)?

There's been a sale pending since the day it was listed. What's your point?

13   bubblesitter   2012 Feb 16, 4:15am  

joshuatrio says

There's been a sale pending since the day it was listed. What's your point?

Never mind. I did not follow the link to see if it is sale pending.

14   TPB   2012 Feb 16, 4:18am  

Small? HOA? You shouldn't have wasted your time.

I think a dinky house, is more for someone desperate to be a homeowner and will settle for anything before they get priced out for ever. Or some reasonable person or couple that don't have plans of growing. They like them if the price is right.

Renters damn sure don't want to cover your mortgage, tax, insurance, HOA fee on a tiny house. Condos are different, MFH's are perfect for the Renter not concerned with space. Because they don't have to worry about yard work, or carrying the garbage can out twice a week, getting a water bill from the landlord(which only recently has become the common thing to do).

There's plenty of Investors in my Neighborhood that has found out the hard way, a 900-1200 sqft houses don't rent well. Almost all of them have been put back on the market. Or are just sitting empty with a new paint job and fence.

15   clambo   2012 Feb 16, 4:24am  

It sold for $139,000 in 1991 :)
I think Marina's not a bad spot either.
What about putting a big down but not tying up all your dough in it?
Push comes to shove there must be some foreign students for rentals. They are at 1. mpc 2. cal state monterey bay 3. Monterey institute
Foreign female students are good tenants.

3 bedrooms=more bodies, more rent to collect :)

17   joshuatrio   2012 Feb 16, 4:51am  

The GOP says

Renters damn sure don't want to cover your mortgage, tax, insurance, HOA fee on a tiny house.

It is 1300 sq. ft. Many of the homes in this area are around that size, most not bigger than 1800 sq. ft. It would rent for an easy $1500-1700.

clambo says

It sold for $139,000 in 1991 :)
I think Marina's not a bad spot either.
What about putting a big down but not tying up all your dough in it?

True - the historical value is what caught my eye. But in talking with the wife about it, it needed probably about $30k work inside - flooring, paint and a new kitchen (it's livable, but we'd probably fix it up). Plus $10k to have the exterminator/termite damage fixed.

So I'm up to $204k in a place that I'm not thrilled about, share walls, and have a small backyard.

If we wanted to be a landlord - I wouldn't update a thing in the place.

Marina's a great spot. Easy to work in Santa Cruz, Monterey, Seaside, Salinas, even Gilroy/SJ if one doesn't mind a commute. Not to mention, Marina gets killer west swells for surfing - although we've had 2 sharks attacks at the state beach here in 3 years.

I guess the bottom line is that we weren't thrilled about the place, the prices ARE coming down, but the dang, pesky realtors are still at their games and lying through their teeth... That's what really got me.

18   clambo   2012 Feb 16, 4:57am  

Realtors these days are desperate. You'll be able to notice it now.

19   generallyfd   2012 Feb 16, 5:12am  

With home prices falling and historically only providing a rather modest return (inflation), I seriously don't understand the investor mentality. You're buying a depreciating asset that costs serious time and money to maintain. Most other investments don't require anywhere near that type of maintenance and have higher returns.

I STILL maintain there's a real estate investment bubble that is going to pop just as soon as those with the cash realize RE is not a good investment (relative to other options) and they start putting their money elsewhere.

20   everything   2012 Feb 16, 6:23am  

Steer clear of termites, that whole are is probably infested, and they will come back, don't give the realtor hints on your finances, just say it's covered or show them the paperwork you get from the bank that shows how much you can borrow.

If your staying where your at, definitely keep looking at other places, and keep saving your money.

Don't make the same mistake I did and buy junk.. Don't be afraid to rehash/rethink what you really want, and need, etc.

Your going to have to put with a realtor no matter what, don't let them stress you out, let them do all the flipflam talking and sometimes, not very often, you can learn a little something from them.

21   TPB   2012 Feb 16, 6:34am  

joshuatrio says

It would rent for an easy $1500-1700.

All of that work for $150 a month profit, that's if nothing goes wrong.

22   MAGA   2012 Feb 16, 10:18am  

clambo says

Here's where I looked:

http://www.zillow.com/homedetails/3080-Crumpton-Ln-UNIT-8-Marina-CA-93933/19357341_zpid/

The listing agent is too lazy to take some real photos? Instead, the Realtor uses Google street view.

A quality RE professional for sure.

23   Bigsby   2012 Feb 16, 12:02pm  

joshuatrio says

http://www.zillow.com/homedetails/3080-Crumpton-Ln-UNIT-8-Marina-CA-93933/19357341_zpid/

If it's a home for you to live in, you may as well try your luck with a low offer for one of the houses in Marina that is in the 250-275k range (or wait and save). They look a much better deal to me and prices still seem to be moving (slowly) down.

24   Malkovich   2012 Feb 16, 1:56pm  

APOCALYPSEFUCK is Tony Manero says

There were never any offers.

Be sure to call the abutting neighbors to this shit house and tell them the thing is a termite nest and should be burned to the ground.

Then call the realfucktard and ask what she did that was so impressive that her pimp let her keep his car.

Can I sign up for your newsletter, good sir? :)

Every time I open a thread I immediately look for your post.

Many thanks.

25   karen   2012 Feb 16, 4:40pm  

Rents are going to go down, too. Hold onto cash for a couple more years.

26   karen   2012 Feb 16, 4:42pm  

That dump will ultimately sell for 85K, if they're lucky.

27   Bigsby   2012 Feb 16, 5:12pm  

karen says

That dump will ultimately sell for 85K, if they're lucky.

Then you don't know the market in this part of the world.

28   cleg   2012 Feb 16, 8:07pm  

"The difference in 'number of offers' doesnt mean they are lying people will normally call the listing agent and say 'im gonna submit an offer tomorrow' " If someone might submit an offer tomorrow that doesn't count as an offer. An "offer" has a specific legal description in contract law. In general I have discovered it is best to assume that everything the realtwhore says is a lie. I have dealt with dozens of people in the real estate "profession" over the past 25 years and cannot think of one of them who has not made an effort to misrepresent something, hide key information, lie about submitting an offer , lie about other offers or otherwise lie in an effort to make the sale. In at least 2 cases the facts being withheld were that the property in question was ineligible for a building permit, meaning that if I had bought it based on the agents verbal representation I would have owned a $100K plus vacant lot that I could not build a house on. There was also the lakefront property that did not actually reach the lake. The Realt$#@% spent a lot of time describing where I could build a dock but failed to mention that was someone elses back yard. The fact is you can do better at finding an buying property without them because they will not show you the good stuff. Think about it. If a property is listed and offered by a Realt$#@* it means that they have already passed on the opportunity to buy it themselves at a discount (their commission) to what they want you to pay.

29   rktbrkr   2012 Feb 16, 8:28pm  

Salespeople are always going to do what salespeople do whether it's a used car or a home.

Realtors are doing whats best for buyers or even for the sellers either really, they're trying to maximize their own benefit so when you're a potential buyer you have to look at everybody else in the transaction with a jaundiced eye.

30   LASVEGASWINNER   2012 Feb 16, 9:21pm  

"I politely said "we will not be financing - if we make an offer, it will be all cash."

A "seasoned" agent would have inquired about "all cash" as to"you have $160,000 sitting in a checking or savings account today"? I would have then suggested looking at a $320,000 with 50% down since I would make twice the commission then on a $160,000 house. Sounds like the agent wasn't prepared to work with an investor

31   batakdepores   2012 Feb 16, 11:05pm  

clambo says

You could buy vanguard high yield corporate fund which is paying about 7%.
$933/month wired into your checking account.

Clambo, do you do this yourself?

32   investor90   2012 Feb 16, 11:26pm  

APOCALYPSEFUCK is Tony Manero says

It's called fraud. Call the police and ask for these two to be arrested for felony misrepresentation, convicted and stuffed into a supermax for 10-40 years.

joshuatrio says

APOCALYPSEFUCK is Tony Manero says

NOT THAT FAST! They must be waterboarded and shipped to YEMEN for some additional "training" to make them better agents.

There were never any offers.

I'm inclined to side with this opinion.

33   elliemae   2012 Feb 16, 11:32pm  

APOCALYPSEFUCK is Tony Manero says

Then call the realfucktard and ask what she did that was so impressive that her pimp let her keep his car.

Marry me!

34   investor90   2012 Feb 16, 11:33pm  

jvolstad says

joshuatrio says

The agent who showed us the property, easily could have been my mother (she had like 30 years on me), but spoke down to me as if she had the ball in her court. What was even funnier was that she drove up in her decked out Cadillac ... 22" chrome ghetto wheels....

What happened to all the hot young female Realtards? I want to get a Bl.w J.b at closing from a hottie.

They are waiting n line at the VD clinic for their HIV tests.

35   investor90   2012 Feb 16, 11:34pm  

Malkovich says

APOCALYPSEFUCK is Tony Manero says

There were never any offers.

Be sure to call the abutting neighbors to this shit house and tell them the thing is a termite nest and should be burned to the ground.

Then call the realfucktard and ask what she did that was so impressive that her pimp let her keep his car.

Can I sign up for your newsletter, good sir? :)

Every time I open a thread I immediately look for your post.

Many thanks.

ME THREE...! Realtards= swamp gas

36   PockyClipsNow   2012 Feb 17, 2:11am  

ok now it sounds like these people are liars.

Its to be expected at every turn in every business I suppose.

Your only weapon is to bribe them (let them double dip commission) and get the listing agent working for you on the seller to lower the price before they accept the offer then get them to put in as much 'repair money' as you can get.

There are others way to get a lower price, other 'weapons' people use. I had a buyer come in with a chimney inspector who is supposdely known for advising every single chiimny he inspects be torn down and rebuilt. That was good for the buyers to gouge 10k off the price. But this was 2006 when they paid over 600k so the joke is on them. I know it was a lying scam and I gave in (was about to lower the price anyway, no offers coming int).
THen there is the crooked mold inspector scam, then there is the crooked home inspector scam (aluminum wiring! gotcha!), then there is the crooked termite inspector scam. Its endless.

37   zzyzzx   2012 Feb 17, 2:34am  

PockyClipsNow says

2. The difference in 'number of offers' doesnt mean they are lying

Yes it does.

38   zzyzzx   2012 Feb 17, 2:36am  

PockyClipsNow says

THen there is the crooked mold inspector scam, then there is the crooked home inspector scam (aluminum wiring! gotcha!), then there is the crooked termite inspector scam. Its endless.

Please elaborate on this more. Are you saying that people are claiming false defects to get out of buying houses?

39   PockyClipsNow   2012 Feb 17, 2:45am  

Im claiming its common to hire an 'aggressive inspector' not to get of contracts but the buyers use this sometimes to get credit ($) for repairs after offer is accepted. Its well known tactic, and in most all cases the defects are real. Except for Mold and termite - i think those are mostly BS IMO based on my in the field experience. (in the case of mold i would say 100% a scam, 'toxic mold' is a scam 100% of the time IMO but you can find endless 'evidence' its real but I think its as fake as global warming, mold is natural and will grow on your bread in 2 days. But i could be wrong.)

40   clambo   2012 Feb 17, 2:53am  

for depaktepores I have vanguard total bond market index, vanguard high yield tax free, vanguard high yield corporate.
The biggest of the three is total bond market index admiral shares.
I would not suggest that having $150K in cash is the same as buying high yield corporate bonds however. The high yield bond fund can vary in nav (principal) so using that fund as a parking place for money is not that wise.
But, if I were a guy running around looking for "investments" and had $150K burning a hole in my pocket, I'd consider the alternative to being a landlord and look at bond funds.
A place to hold your dough while you decide might be vanguard total bond market index fund.
International bond funds also may have good yields but they have other risks depending on which countries bonds they own, and currency risks, etc.

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