should we fire our realtor?

posted 1 month ago in Engagement
Post # 47
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45 posts
Newbee

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bouviebee :  Maybe their Realtor should be more proactive, but not a Bulldog.  That is a strategy that doesn’t ever work.  Especially in a hot market.

Post # 48
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45 posts
Newbee

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denkyem :  Oh wow!  As a Realtor that would make me SO nervous not to have an inspection, but our average home price here in Grand Rapids, MI is about $230.  The culture here is everyone expects everyone to get a inspection.  I suppose if youre’ paying up to 1,000,000 for a home if there is a major problem – like a roof that will cost them $30,000 to get re-roofed it’s not such a big deal.  But here it would be huge.

Quick question..I’ve always wondered how young people can afford homes for a million +.  I’m sure there is an income discrepency between Michigan and Toronto….and Michigan and either of our coastline properties, but not THAT much of a discrepency…do you just pay interest for a while ad hope it appreciates?  You can still get a cute little starter home for $160.  I’m not trying to pry into your personal finances…I’m asking generally how do people who work modest jobs afford that cost of living…say a teacher and a nurse for isntance….

Post # 49
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1543 posts
Bumble bee
  • Wedding: City, State

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SimpleModernBling :  You and I must think of a bulldog as different things. I think of a bulldog as someone who isn’t afraid to hold their own. Someone dedicated and reliable who works hard to find solutions for their client. To be “dogged” is to be tenacious and persistent. I don’t ascribe to the meaning of a bulldog as someone who’s overly pushy and an asshole

Post # 50
Member
1037 posts
Bumble bee
  • Wedding: December 2014

Sellers markets are hard! We purchased in a boom and had to offer extra to get our offer accepted. In My country though we don’t use buying agents in most cases, you just submit the offer with your conditions and that’s it. Your agent just sells your house and organizes your offers you receive. 

Even worse is our housing market has crashed at least 25% here so now we have lost all our equity and couldn’t sell without a major loss, even though this home was never meant to be our forever home we are now stuck here as I don’t see prices rising to those levels again for a very long time. 

Post # 51
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40 posts
Newbee

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SimpleModernBling :  A bully offer is sending making an offer as quickly as you can after it appears on MLS and giving the seller a very short time to accept. It’s essentially a Buyer trying to lock it in to an accepted offer so the Seller can’t consider anyone else who might want to make an offer. 

Personally, I once did that for a property that was listed for $999,000. I offered $1,005,000 with the Seller’s preferred completion date and gave her 24 hours to accept. She declined to respond and said she needed to see it listed for a week before she would negotiate. 

It sold about a month later for $990,000 to someone else. 

Post # 52
Member
3 posts
Wannabee

I’m in Toronto also. I have fired an agent before for the exact same reason. Fire them and move on before the market actually heats up in April/May. You don’t have to be nice to someone who you’re giving a gun in a sword fight and they keep coming back shanked. This is your home. Your life. Your money. At the end of the day, when this guy loses your dream home and finally gets your one months later for way more money and less house — are you really going to sleep peaceful at night knowing he still made money off your deal? Nah. Six months ago we had an agent who was way too passive , lost our DREAM HOME (third offer he lost on the third house). We met all the sellers terms and bully offered. We were told to write a personal letter, etc. Did all the things. Still lost. Turns out we knew the neighbors and they talked to the owner. The owner liked our offer but our agent didn’t mention we’d be 100% flexible with closing date to accommodate and he didn’t tell us our standard 60 day close was not sufficient… so even with all the flexibility in the world, we lost on a flexible close…. and we still talk about it and kick ourselves. Love our house now… but not as much as that house we lost. Good luck. 

Post # 53
Member
3302 posts
Sugar bee

A bully offer is one that comes in before the offer period starts and gives a deadline before the other offers.

Toronto is a crazy market. The house beside us just sold for 949k which is a teeny bungalow with an inside so bad they didn’t post pictures of the inside. The buyer is going to add a second level which will still be cheaper then buying a finished place in this location.

Many people bid on 26+ places.

Post # 54
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45 posts
Newbee

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stella678 :  Thanks for the information about a Bully offer.  We (as Realtors in GR Michigan use this tactic too, we just never had a name for it) maybe I’ll use it…or maybe I’ll think of a more positive sounding word…so the seller’s first impression isn’t a netative one – especially if I’m the buyer’s agent.  I think I might call it a “Special Offer”.  🤔

Thanks for the explanation!

Post # 55
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237 posts
Helper bee
  • Wedding: City, State

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sewingbee :  
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frenchie0586 :  Thanks for the explanation of the market, that sounds insane! However, the second part of my question which is most confusing to me wasn’t answered. In the US, a bank will not loan you any more than the appraised price less your down payment. So if you offer a dime over market price, out here, you would need that in cash. I guess it is hard to understand that SO many people in Canada are just walking around with half a million dollars in their bank?

Everyone keeps telling OP that is how Toronto is, and it is not her Realtor’s fault, it is HER fault for not offering MORE. Her Realtor told her to offer more money and you are all saying she didn’t listen to him and it is her fault she lost homes because her offer wasn’t competitive. Well what if she doesn’t have 300K in cash?! I certainly don’t… and I don’t know anyone who does. The only option would be to back off and find a smaller house for a lower value. I am just confused as how everyone says simply offer more money. Offer that money from where???

Post # 56
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115 posts
Blushing bee

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temeculabride :  If you don’t have the cash and thus can’t be competitive, you shouldn’t be offering on the house or like you said, you should be looking for something smaller or out of the city.  I know it’s annoying to hear “this is the Toronto market” but that is what it is.  Most people living here understand that.  

I can only speak for myself and my experience but every house we went 200k over asking on was approved by the bank. We also do have 200k in cash in the bank waiting to find our home. 

Post # 57
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115 posts
Blushing bee

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SimpleModernBling :  I am a teacher. We get paid a lot more in Canada compared to the US. My SO is in finance. 

Post # 58
Member
4022 posts
Honey bee

I had this same experience when trying to buy in Boulder, CO. Everything was going for well over asking, in the same day it was listed, and bully offers never worked. They can’t work when sellers know the market is nuts and people are willing to pay. I never ended up purchasing in that market as I hated the idea of paying out the nose for something that had a high chance of not appreciating. Toronto sounds scary AF for buyers! 

Post # 59
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237 posts
Helper bee
  • Wedding: City, State

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frenchie0586 :  Thanks, I suppose that is the major difference for us US bees. A bank will not loan you more than the appraised price less your down payment, period. I could write all the high offers I wanted to to get accepted, but when it came down to getting approved for a mortgage I would be SOL. 

I lost a house because of this. House was listed at 250K, I was approved for 250K and willing/able to spend it very comfortably on my income. Appraisal came back at 220K, and since I only had 25K in cash for a 10% down payment and not an extra 30K to make up the sale difference, I had to back out. The sellers would not break even on that lower sale price and decided to just not sell their home at that time anymore. So even though I was approved and 100% able to make payments, the US banks go on the appraisal price.. and ONLY the appraisal price. They wouldn’t care if I made 300K a year, they would still not issue a mortgage for more than the value of the home. 

Post # 60
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3302 posts
Sugar bee

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temeculabride :  the bank doesn’t loan the money based on the homes assessed value. The bank lends based on what they think you can afford.

 

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