A refused offer, because of overpricing.

Hi, I'm from Montreal, Canada to put things into perspectif.

There is this property which was first listed for 550,000$ and which was clearly overpriced. Months later, the price was dropped to 529,000$, then 500,000$. Again it was overpriced.

Since I'm interested to the property I did not know what to do. I brought an independent valuator who estimated the market value for 440,000$. So according to the result I offered 400,000$ to start negociating. According to the sellers Realtor the seller was very angry and insulted. The seller conter offered for 485,000$. I wrote a letter with comps. and arguments and explaining that the bank estimates the property for 425,000$ and an independent valuator to 440,000$, I even scanned and printed the valuators conclusion to prove it. I explained that even if anyone else would offer more, the bank will refuse to loan because it will be considered to be overpriced. According to the sellers Realtor the seller started to understand and that they were confident. I finally ended up offering 432,000$ as my final price. Since I do not have a Realtor, the sellers Realtor agreed to cut almost half of his commission, something which would not have happened had both side had Realtors. After presenting the offer to the seller, the Realtor told me that the seller was angry and that his son entered into the picture and that they are deciding to bring a valuator themselves and that after the realtor contract (which ends by the end of the month) his son will be selling the house.

A day later, as expected, I recieve a phone call from the Realtor who tells me that the offer was refused.

As a background, in a period of 5 months, prior to my offer, there was no offer on the house.

What can I do, I can not offer more on it, and I am sure that they'll wait months more to obtain (I know the area, I live in that area) more than I offered, if ever they do and if ever they do, won't be above 2K or 3K, which will be compensated anyway if they invest that money. I wish the seller to bring a valuator, because I am sure that the valuator did not underevaluate it, I even asked the opinion of realtors in the area and one said that I should even wait the listing price to be 450,000$ before making any offer.

I would really want to move for the new year, the seller is clearly unreasonable and will one day realise it, but I have no time for that. What I am suspecting is that his son will be selling the house because they realised it worths less than what they thought so that he can save on the realtor commission.

Will they be more interested if I contact them privatly and ask them if they are willing to take the offer just after the contract with the realtor ends? I can ask them that in the meantime they can bring a valuator.
 
Not sure how things work over there but if you were to make an offer just after the RE agent's agreement ended, they would most probably still be entitled to a commission as they were the ones who introduced you to the buyer in the first instance.

Boods
 
There isn't much you can do. you cann't force them to sell. your options as I see them are;
a) pay more then the property is worth. (I would not advise this)
b) walk away and find a new property.

Sellers can put their house on the market at whatever price they wish. It doesn't have to be fair market value. Maybe the owe more on the house then it is worth, maybe they are just deluded. Maybe they weren't even going to sell in the first place but the REA told them they could get this unreal price for it, so they now won't settle for anything else.

My advice walk away. By all means let the REA know he can contact you if the vendors decide to be more reasonable, but in the meantime move on and look for something else.
 
Since I do not have a Realtor, the sellers Realtor agreed to cut almost half of his commission, something which would not have happened had both side had Realtors.
In Australia it's the exception for the buyer to have a realtor (which we call "real estate agent" ;)); the purchaser is unrepresented > 99% of the time, so I'm surprised the agent agreed to accept a commission reduction, but anyway, well done. :)
Wonder77 said:
Will they be more interested if I contact them privatly and ask them if they are willing to take the offer just after the contract with the realtor ends? I can ask them that in the meantime they can bring a valuator.
Not sure how things work over there but if you were to make an offer just after the RE agent's agreement ended, they would most probably still be entitled to a commission as they were the ones who introduced you to the buyer in the first instance.
Not "probably", definitely. ;) I guarantee you the RE agent will be checking on who purchases when it ultimately sells, and if your name comes up, the courts won't look kindly on the situation. The vendor is financially liable for paying commission, but if you've colluded with the vendor to attempt to deprive the agent of commission, then you're both left open to prosecution for fraud.

rugrat's advice is spot on, in my opinion.
 
OK some news, I contacted her agent and he explained the seller as an old lady is scarred to be dupped someway because she does not trust the valuator. She is going to bring in a valuator and that the agent was able to have her not sign the refusal. That's good news. The agent also said that they will renew his contract so he will be selling the property. I will therefor have my edge over other buyers because I don't have an agent. Here the commission is about 6% and if both seller and buyer have an agent they take 3%-3%, if only the seller has one, he keeps all the 6%. That's why there is a juice.

How much the kitchen, the bathrooms and the basement has an influence on the price? The house was built in 1969, the two bathrooms are the originals but are in like new condition, the Kitchen was renovated in the 80s, the basement floor is not done. How much could this have an influence in the valuation. How much variation between two different valuation can I expect?

Just for clarification, I don't have a problem with her agent, he is reasonable, he has tried everything to have the seller accept what I am sure he knew was a very reasonable offer. Anyway, now that I know he will renew the contract, there is no problem. Just crossing my fingers that the valuation comes similar as I just really want to move.
 
Hi, I'm from Montreal, Canada to put things into perspectif.

There is this property which was first listed for 550,000$ and which was clearly overpriced. Months later, the price was dropped to 529,000$, then 500,000$. Again it was overpriced.

Since I'm interested to the property I did not know what to do. I brought an independent valuator who estimated the market value for 440,000$. So according to the result I offered 400,000$ to start negociating. According to the sellers Realtor the seller was very angry and insulted. The seller conter offered for 485,000$. I wrote a letter with comps. and arguments and explaining that the bank estimates the property for 425,000$ and an independent valuator to 440,000$, I even scanned and printed the valuators conclusion to prove it. I explained that even if anyone else would offer more, the bank will refuse to loan because it will be considered to be overpriced. According to the sellers Realtor the seller started to understand and that they were confident. I finally ended up offering 432,000$ as my final price. Since I do not have a Realtor, the sellers Realtor agreed to cut almost half of his commission, something which would not have happened had both side had Realtors. After presenting the offer to the seller, the Realtor told me that the seller was angry and that his son entered into the picture and that they are deciding to bring a valuator themselves and that after the realtor contract (which ends by the end of the month) his son will be selling the house.

A day later, as expected, I recieve a phone call from the Realtor who tells me that the offer was refused.

As a background, in a period of 5 months, prior to my offer, there was no offer on the house.

What can I do, I can not offer more on it, and I am sure that they'll wait months more to obtain (I know the area, I live in that area) more than I offered, if ever they do and if ever they do, won't be above 2K or 3K, which will be compensated anyway if they invest that money. I wish the seller to bring a valuator, because I am sure that the valuator did not underevaluate it, I even asked the opinion of realtors in the area and one said that I should even wait the listing price to be 450,000$ before making any offer.

I would really want to move for the new year, the seller is clearly unreasonable and will one day realise it, but I have no time for that. What I am suspecting is that his son will be selling the house because they realised it worths less than what they thought so that he can save on the realtor commission.

Will they be more interested if I contact them privatly and ask them if they are willing to take the offer just after the contract with the realtor ends? I can ask them that in the meantime they can bring a valuator.



Heya Wonder.

Well that's good to hear after a frustrating almost identical situation I've just thrown the hat in on , at least it's not just me.

We had a house here that's been up for 4 yrs would you believe.
It started at 175 4 yrs ago and didn't sell through the middle of the boom and all . Guess what , it still hasn't sold and they've up'd the price to 220 which is way over what it's worth because it has a weird neighbour situation and besides , it didn't even sell at 175 in the middle of a boom.

The owner is an old lady , she can't come up anymore to look after it , the kids haven't been up in 5 yrs , we think well it's not bad at around 180 these days , we''ll offer that and to me that was still 10k over and even the agent agreed.
It's the only offer they've had in 3 yrs, I mean you'd take it wouldn't you ?
Nope , not a hope in hell.
No one to look after it, no offers on it , it's way over valued and the bank wouldn't even approve 220 anyway , we asked .
Nope , 220 and they ain't budging .
We walked away in the end . It's still for sale 6 mths on , no calls .

Cheers
 
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