I don't trust my real estate agent!!!?

Question

I just found a townhome that I really like that was listed at 120K. My real estate agent and the seller's agent work for the same company. I told my real estate agent to make write up an offer for 110K. She was pushing heavily for me to make a full price offer. She finished the contract for the 110K offer and she was like "I'm positive they are going to coutner offer." The contract wasn't signed and I didn't turn in any earnest money or option money. I'm approved for a lot more and I think that she won't turn in the contract and she'll just tell me "The seller asked for 115K" or something like that in an effort to push her commission up. My questions are: can an offer be submitted without a signed contract, earnest money, and option money? Does she have to give me written notification from the seller showing contract submittal?

Answer 1

If you don't trust your real estate agent, I doubt that anything WE say will help. I don't understand why you would work with any agent you do not trust.

You can expect a counter offer. It's just commonly done. You can also say "I've reached my limit. You (the realtor) can absorb some of it if you will take a slightly smaller commission, OR they can lose the sale as I can't go above 110K."

Counter offers are standard. The seller will do so in hopes of splitting the difference.

Answer 2

If you didn't sign the offer or hand over any earnest money, you have not submitted a complete offer. Don't expect it to be submitted.

Once a complete offer us submitted, the seller can do four things:

1. Accept the offer.
2. Counter the offer.
3. Ignore the offer and allow it to expire.
4. Ask you to resubmit a more reasonable offer without countering yours.

With 1, 2 or 4, the agent should provide you with a signed copy of the acceptance, counter offer, or invitation to re-submit. If the seller ignores the offer then it will simply expire in whatever timeframe was included in the offer.

Answer 3

You should definitely have signed paperwork showing the offer/counteroffer. Your real estate agent MAY not be into fraudulent activities because pushing the price to 115k would only affect the 6% commission by $300. However, you really need to see the counteroffer signed by the seller.

Depending on your location, the price could be good or bad. You are still getting it for 5k less than asking price. If you are in an area most affected by the downturn of the market, you can push the 110k offer pretty hard and may get it.

Ron

Answer 4

Because the Realtors involved work in the same office, she may have knowledge that the sellers have refused all offers and are holding out for a full price offer.

She won't turn in the contract because you didn't sign it. And you don't have a promissary note or earnest money.

I don't give a rip about a few thousand dollars price difference in an offer, it doesn't effect my check enough to concern myself. I write what my clients ask me to, I tell them what I think and the offer goes in.

Change Realtors, this one doesn't have a rapport with you and I doubt this can be salvaged.

Answer 5

Did you not indicated in your buyers contract that you preferred NOT to do "Dual Agency"? If so, then she has violated your contract. If not, then you should have.

Since you r offer wasn't accepted, but countered, you have three options, #1 Counter back, #2 walk away, #3 make another offer price.

It's simple, if you are unable to purchase this home, and you still do not trust your Agent, I would fire them. And seek out another Realtor to assist you. Making sure this time to discuss "dual agency" and how it affects you. But note this; if you purchase that townhome with another agent and your contract clearly states you will pay the commission, you will owe your present Realtor the commission. Most of us write in that should the buyer purchase a home shown by us within say 180 days of the buyers contract being expired/cancelled, etc. you may owe the agent a commission. Read your contract carefully.

Dual Agency isn't a bad thing, it's just that most Realtors do not know how to handle it and so appear to be bias in their dealings.

Answer 6

Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written offer to the seller. This offer specifies not only the price, but all the other terms and conditions under which you propose to buy the property. For some sellers, these terms and conditions such as proposed date of closing, possession, type of financing, testing and other "strings" attached can be just as important as price.

An offer to purchase always includes the following items:

Address and legal description of a property
Sales price
Terms (cash or mortgage amount and type)
Seller's promise to provide clear title
Target date for closing (the actual sale)
Amount and type of deposit money accompanying the offer, where it's to be held, and what happens to it if terms are not met.
Method by which real estate taxes, rents, utility bills etc. are to adjusted between buyer and seller
Provisions about who will pay for surveys, tests and the like
State required provisions and disclosures
A time limit after which the offer expires if not accepted
Contingencies
Contingencies

If your offer says "this offer is contingent upon a certain event", you are saying that you will only go through with the purchase if that event occurs. The most common contingency is the mortgage contingency, by which a buyer agrees to purchase only if they can obtain a specific kind of financing within a specific time frame. Another common contingency states that a buyer will agree to purchase only upon receipt of a satisfactory test result (on the well, the septic system, a complete home inspections, radon, etc.) within "x" number of days.

It's important to remember that these details must be written into the contract up front, and that you, as a buyer, must make every effort to fulfill these contingencies, including paying any fees.

Earnest Money

Along with any offer you submit to a seller, you will be expected to offer earnest money, also sometimes called "hand" money or "good faith" money. This money, usually a personal check, is deposited into an escrow account by the listing real estate office if and when your offer is accepted. It remains your money so long as you abide by the terms of your contract and make a good faith effort to fulfill your obligations. At closing it will counted toward your downpayment or closing costs. Should you fail to follow through on the promises you made in your offer to purchase, however, that money could be confiscated by the seller as damages for having taken there home off the market, so it's important that you understand, up front, the obligations that a contract imposes on you, and recognize that an agreement of sale is a legally binding document that is not to be entered into lightly.

Negotiating Tips

Some buyers have a better bargaining position and are more attractive to sellers than others. Cash buyers and buyers who have written pre-approval from a lending institution will have a stronger bargaining position than buyers whose ability to obtain financing is questionable or unknown. Buyers who don't have to sell another home first are also stronger buyers than those who do. Your Buyer's Agent can advise you on steps you can take to enhance your bargaining position.

The Seller's Response to Your Offer

You will have a binding contract if the seller, upon receiving your offer, signs an acceptance without making any changes to your offer. In this case, your offer becomes a binding contract as soon as you are notified of acceptance. If the offer is rejected, the deal is off and all parties walk away.

If the seller agrees to parts of your offer, but can't accept all the terms and conditions, they may return to you a written counter-offer containing changes to the terms that they don't like. On receipt of a counter-offer, you have the option of accepting the changes, rejecting the offer, or making additional changes and returning the offer to the seller.

Any time either part makes any changes to an offer, the original offer becomes null and void. The offer only becomes a binding contract when all parties have signed an offer without any additional changes. In the meantime, other buyers are free to submit their own offers in competition with yours, and the property is "fair game".

Answer 7

I just bought a house, and to answer you question -NO, you must sign the offer you are making at all times, but she doesn't have to show you written notification for the submittable, now, if you don't trust her, tell her that you don't feel comfortable with this transaction remember YOU are the buyer!!! and if you agent is honest she will explain everything to you. what is funny is that she hasn't asked you for hearnest money!! hmmm.... they should ask you for that before any offers are made, to assure that you are serious with this house...another thing is why is she pushing you to make a higher offer :( that is so not professional! also, when i was buying my house there was something that I didn't feel right, and my realtor said ' I rather you feel happy and comfortable with what we are doing, than for me make a commission - remember my job is driven by referrals' it made me feel so much better...Good luck and ASK ASK ASK!!!

Answer 8

Offers must have a written contract with earnest money.

Realtors are required to submit any and all offers whatever they may be.

As contracts contain a clause that "time is of the utmost importance", with a short time limit to accept or reject, they are returned within hours, up to 24 hours.

I don't trust any realtor.

Answer 9

It sounds like you need to change real estate agents. It is her fiduciary duty and within Realtor Code of Ethics that she present every offer to a seller and reply to you as to their answer. If you think she would do this to you...ie: say they want more to get a bigger commission....then find a new agent.

Answer 10

I can't imagine your Realtor would do anything unethical for a 5,000 increase in the sales price. That 5k difference equals $150, and your Realtor has to share that with his/her company. so, for $100, it's highly unlikely that is any part of your Realtor's motivation. Realtors want to go to closing first and foremost. You don't stare a bird in your hand for the 2 in the bush... http://www.choicefinance.net/