Even before this latest go-around with my agent, I had decided not to use her services after this property. As I told my wife yesterday, there have been too many "little" things I've noticed over the course of our relationship with this latest thing being the proverbial straw on the camel's back. In the past, she hasn't communicated very well with me on several items - most notably my offers. Many other things I could list as well, but suffice it to say, I'd be better to deal with listing agents directly and do the retail marketing myself for the price I'm paying my agent to do the work and the benefits received.
I took the afternoon off yesterday, because my wife and I had some much needed errands to run. I sent my agent an email with my offer price well in advance of me leaving work. When I finally had time to sit down last night and read my email, I received two from my agent. The first looked like it was sent soon after I left work, and the other a short time later. Here was the first:
What happened?? I was recommending $125-130K, you were talking about 130-135, and now you want to go to 140?!? I am not just opposed, I would not take the listing if it were not you. The house tax appraises for $133K, it will not appraise for more than $135K and that would be a stretch (and thus would not get loan approval for a buyer), and it will be the highest priced property in the development by $5000. I tried to talk some sense into [my wife], but she insists that this is what you have decided. Please know that sold comps don't show the amounts the sellers paid in buyers costs, reducing the net sale price. This is something that I go over with folks on a line item basis at the listing appointment, but haven't had a chance to do this with you (and will tomorrow). If you are firm, firm, firm on this price I will do it for you, but I am on record that it is so overpriced that you will not only not get offers, you will not even get showings beyond those that are trying to sell other homes off of yours. Please call me if you can get a minute.
Now call me mean, but I was really put off by this email. First, I never said 130-135, and she never said 125-130 - NEVER. The only mention was when both of us were giving examples for other reasons. Matter of fact, the only time I said anything definitive is when I said "maybe around $135k" in an email earlier this week. Second, the 2005 tax assessments have been out for a few weeks now. This property was appraised at $137k. LAST YEAR'S assessment was $133k. This is one of those incidences where she doesn't communicate well - one of those "little" things I mentioned above. Third, if it weren't me, she wouldn't do it. This kind of put a sour taste in my mouth for future deals I would have with her. The biggest gripe I have about this whole situation is the lack of communication on her part. Instead of talking to me SOONER about prices, she waits for me to say something and then jumps on both me and my wife about how opposed she is about it and how she wouldn't do it in normal situations (with an attitude no less). Another thing that boils me is the fact that she made no mention to me about this circular. In fact, MY WIFE was the one who had to ask her about it. If my wife didn't ask her, we would be meeting on Saturday morning and my agent would be saying "sorry, but the circular just went out - we'll have to wait another month to put your property in." Another "little" thing that just adds to the pot.
My agent's follow-up email was to tell me that since she didn't hear back from me, she went ahead and put the request in for the circular and the MLS entry with our $140,000 price. Why she didn't call me at home is beyond me. She has both my work and home phone numbers.
Well, after reading her email last night, I settled myself down and replied with the following:
I had several appointments this afternoon, and didn't have a chance to check my email until now. Evidentally there was some miscommunication going on in our earlier correspondence with each other. I had actually targeted a listing price of around $135k, but never had anything definitive in mind. As I said before, comps suggested a price of around $142,500, but that was based on square footage. [Our] County's 2005 tax records show a tax assessed value of $136,900. Last year's value was $133k, which sounds like the value you were quoting. I realize $140,000 may be a stretch, but I'd rather list a little higher and go low (if need be) as it will be next to impossible to do it the other way around. Frankly, neither of us expect to realistically fetch $140,000 for the property, but we will be open to any reasonable offer.
Also, in your recent scenario of selling it for $128,000, I was a little surprised by your quoted net profit of $15,000. I'm guessing it didn't include a lot of recovery costs I have to recoup to date, but if I had to sell for that price, I would realistically only see a realized gain of a little over $8,000 (not including Uncle Sam's take). While this isn't bad at all, I was still hoping for around $15,000 (give or take).
I look forward to discussing this more tomorrow morning with you.
We'll see what transpires when we meet this morning.
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2 comments:
Well, if you buy HUD homes or buy homes that are listed you may as well get an agent because the listing agent will just take 6% if you dont. Might as well have someone looking out for you and doing some of the leg work - now that can probably be more of a drawback than an advantage if you don't get a good agent. They are hard to come by but if you are going to buy homes that are listed you really should take some time to find a good one. Good doesn't mean experienced either really. I think I'd rather find one that was newer but hard working and depenedable, one that I could train to do things the way I like them to be done and that I could expect to come to know how I like thngs to be done so they can become a little more autonomous. Now, as to the price, the reason I liked 139500 is because its still "in the 130s". Yes, you wont get the people that search 140-165 but, really you dont have a very good chance of selling to them anyways. Youre looking for the people that search 120-140 because there starts to be very little difference between 135k and 139.5k - I mean, really on most loans thats a difference of what? $30-40 a month? Have you had it appraised? That might help too if you could show it appraises for more. I only use agents when I HAVE to and this is why. Most of them are to used to doing things a certain way and dont like moving outside their comfort zone. I haven't found a good one yet, but I'm always keeping my eyes open - I really need to find one so I'm a little less jaded about agents as a whole.
Good points, Ryan. With my current agent's little annoyances adding up to a big headache, I'm on the market for someone else. I've heard new agents are usually the best, becuase of exactly your points. I had hoped I had a winner, since she says she is an investor, too, but too many issues with her.
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