In case you are wondering, we live in the tri-state area and commuting to NYC is an advantage.

You put your house on the market without giving a thought as to what you would do when you got an offer?

Don't be an idiot. Of course I did. we have plans, a place to live. I was asking for advice on how to handle the agent or what to watch out for. Advices.obviously you have "no idea". Thanks for you valueable response.

How did you come up with your asking price?

It's a bit premature to be stressing over what you'll do with an offer until you have it in hand. And hard to give advice about what to do until you have that information.

I mean, if they offer you full asking price, it's pretty obvious that you should accept it. If they offer you half of asking price, you should probably reject it. If they offer somewhere in the middle, you should counter.

So wait for the offer and then come back and ask again.

I'm also confused at your title that says you're FSBO, but you have a realtor that will handle the sale. What's the relationship there?

When we listed with house pad.com which is a sellers flat fee broker only. It is a way to get onto the MLS and realtor.com without using a sellers agent. They charge a flat fee of $175 for listing on both MLS and realtor.com. They asked if we would work with a buyers broker because of the exposure on the MLS. You can choose a % to pay the buyers broker, it is less costly to do so as most realtors I interviewed wanted 5%. So I am saving 2% as I chose to pay 3% at full asking price.

My lawyer will handle the sale of the property, maybe I should have just called her and asked what next? I saw a lot of good advice on this forum such as "contingency sales" and having an "out clause" and thought I could get some advise on what I should be on the look out for.

My distrust is with real estate agents, they remind me of used car salesmen. Don't mean to offend anyone but I have come across some real winners through this process. Intimidation was one listing brokers tactics. Thanks.

So when you said "we have a real estate agent we used in the past..." you meant "we have a lawyer we have used in the past..."? That makes more sense.

A good lawyer will look out for your interests in the document the offer comes in, and advise you on what to add or delete. Feel free to post the terms here as well and we can chip in.

Again, giving you advice on the offer before you know what's in it could burn up a lot of typing telling you how to deal with contingencies that the buyer may not even ask for.

Your absolutely right weedy acres, I meant real estate Lawyer.

Maybe I am premature, when and if we get an offer and I have a specific question, I will repost. Thank you

Sorry, this is what I was reacting to: "I guess I am asking for any input as I haven't had the time to research getting an offer".

This really should have been researched before the For Sale sign went up in the yard.

If you get an offer through a buyer's agent it will probably have an attached sales contract. If you like the amount and the general terms, then you should immediately set up an appointment with your real estate attorney to review all the clauses and dates in the contract. Your attorney will advise you if there are any issues with the language of the contract. You will have an opportunity to make changes.

If a buyer makes an offer without a buyer agent, then you have the option of having your lawyer draw up a sales agreement. If buyer wants to use his/her lawyer to draw up the contract then you will need to decide which side creates the contract. It doesn't matter since your lawyer will review the document. Lawyers like to use their own contracts whenever possible.

Seafire1,

Calling people name is not a preferred way to get help from this forum.

Terriks is a long term contributor who has provided lots of valuable inputs. You owe him/her an apology for your bad manner.

azmom, Thanks for the support, but I was a bit rude in my first knee jerk response.

Azmom, his response was not " helpful" in any way shape or form. I belong to several forums which welcome newcomers and treat them with kindness. This is a very stressful time in my life, I don't need to be jeered at besides. I will take my questions elsewhere. THIS is the reason I left several of Gardenwebs forums. A few people who think they are better than everyone else.

Terricks, I did not respond to you 2nd post, because I was afraid where it would lead to. I have read many threads on this sight lately, your knee does jerk quite often. You may not mean to come across in that manner. I give you the benefit of the doubt. I will not post again, sorry for wasting anyone's valueable time.

Thanks for your response Mike. I thought the realtor would want to use his own contract. I'll pose my questions to her. That's what I'm paying her for.

"That's what I'm paying her for."

Nope.

You're paying her because you've agreed to pay a buyer's broker.

You aren't entitled to ask her any questions;
in fact, it would be better for all parties to the transaction if you were to address all your questions to your attorney.

"This is the reason I left many garden web forums". Was it them...............or you??

Sylvia is correct; You are paying the buyer's agent to bring you a ready, able and willing buyer. She is not there to represent you nor to help you with your best interests. Be careful... any buyer's agent is going to be much more experienced in the nuances of an offer and a transaction.

"Saving" money just means YOU have to do all of the work, including negotiating your own transaction and everything else that a realtor usually handles. Real estate attorneys do not negotiate transactions. They merely vet them for accuracy and to make sure your interests are protected. If you are not knowledgeable enough to handle those issues, then hiring an actual realtor to represent your interests here would seem to be the logical move for someone who needs assistance in selling their home.

You should not ask the buyers agent any questions at all other than pertaining to her clients ability to fullfill the contract. She/He is working for the buyers and not you, your attorney is whom you should be directing your questions about the offer to.

I would try to avoid too many contengencies except the normal appraisal, mortgage, and inspection ones.

Do realtors really negotiate the best selling price for the buyer? Several years ago I was talking to realtors about listing my house with them. At least one said to me "your first offer is your best offer". I think most realtors will urge the buyer to accept an offer even if it the seller considers it low.

I do agree there are people who can benefit from an experienced realtor. Not everyone has the time and patience to sell their own house.

seafire1,

I hope you get an offer.
I understand where you are coming from, so you won't get an argument from me. I DO NOT like realtors, either.

I sold my last house listed the way you did. It worked for me. I, also, worked in RE as an agent and understand the business. While there are some good realtors, many belong to the "used car salesmen" club. lol

However, if you're going to make it in the RE business, you have to become a "shark" or buyers/sellers will eat you alive, or take advantage of you, physically, time-wise, and financially. They'll USE you, and spit you out. The trick is to find a decent realtor, IF you wish to pay the full commish. There are always 2 sides to a coin ;)

Personally, I think the RE industry is set up where greed and being a shyster (? sp) is rewarded. It's piled high with brokers, agents, managers, boards...it's gotten out of hand with costs, dues, with the realtor him/herself not pocketing much after a transaction. Being HONEST, and genuinly trying to help people, while buyers/sellers treated me with disdain, as though I was a money grubber gave me a bad taste for the business, so I got out.

I honestly feel that the RE industry should be like an accountant's office. You, as a customer want help, you go to THE agent, you pay them and they work with you/PER HOUR. Forget the sales game playing, currently involved in the RE business, where it feels like somebody wins or loses. It should be a win/win.

Anywhoo, now get ready to "act as your own agent".
1)Make sure you're priced right. Prices vary from the state level, town and then neighborhood, so get specific. Look at your neighborhood prices. Roughly, you should be able to go into your town's sold properties in the last 2 years. Just call your Town Hall and ask them for help. The foreclosures may or may not count, depending on may factors. Look how YOUR town is doing in comps to other parts of your state. How much did the homes depreciate on an average?
2)Get ready to negotiate. You need to understand what your buyer is thinking and what they want. You need to figure out YOUR leverage. This can be tricky, because their realtor will protect their interest. On a plus, in this economy, realtors are hungry so the buyer's realtor may be nice to you and try to make this deal work, bending a bit for you.
3)Take the negotiated offer CONTINGENT on your lawyer's approval (THIS is very important, in case you are new to this). After your lawyer helps you, your contract will be binding and the buyer and you must continue with the steps in the contract:
a)additional money ON TIME from the buyer.
b)inspections. THIS is where it can get ugly, and negotiations are key. A good realtor is a nice sheild to have, otherwise you have to rely on yourself, and say "my lawyer says...." trying to skew things your way. Careful not to cross the line/law ;)
c)buyer getting a mortgage committment from the bank.
d)other
Once, all that is done (the contingencies in the contract satisfied), you will be on your way to the closing. Good luck to you.

Notto wrote:
"Being HONEST, and genuinly trying to help people, while buyers/sellers treated me with disdain, as though I was a money grubber gave me a bad taste for the business, so I got out."

First you say you DO NOT LIKE Realtors. Then you say you do not like Buyers. Then you say you do not like Sellers.
Man, no wonder you got out of the industry.

getting back to your listing/sale price--
if you get an offer that is for full price, then you listed too low...

if your state requires that sale prices must be turned in to the local tax authority as some states like FL requires then you can look up the history of homes in your neighborhood with similar sq ft and other features like swimming pool or garages and get idea of past comps

knowing how to price your listing for the market is one reason why a good realtor is beneficial...

Posted by ncrealestateguy (My Page) on Sat, May 12, 12 at 21:13

Notto wrote:
"Being HONEST, and genuinly trying to help people, while buyers/sellers treated me with disdain, as though I was a money grubber gave me a bad taste for the business, so I got out."
First you say you DO NOT LIKE Realtors. Then you say you do not like Buyers. Then you say you do not like Sellers.
Man, no wonder you got out of the industry.
---------------------------------------------------------
In a nutshell:

Many realtors DESERVE the "used car salesmen" title, which evokes disdain from the buyers/sellers, so buyers and sellers see ALL agents as the same( actually, several rotten apples spoil it for everyone). People do not trust realtors, because they cannot tell the good from the bad. I, myself have learned NOT to trust majority of realtors. I have stories to back my opinions up ;)

Ironically, the honest, knowledgeable realtors, who worked for the buyers/sellers like for themselves in my office did not do as well as the ones who were in RE to just make a buck. Some honest, caring ones had to cross over to the "dark side" to make a living.

Because, IMO the RE system is a gouging one with too many layers, it brings out the worst in most or ALL people involved-buyers/sellers/RE agents. I understand where ALL are coming from. As I said earlier, I wish the RE industry would change to make it more pleasant, because it's stressful enough to buy or sell a house (on the buyers and sellers), without having to play games with the RE industry. It costs too much to purchase or sell a house. The middleman costs too much due to the RE industry exploding in costs.

Basically, depending which side of the coin you're on (RE Agent vs buyer/seller), you will find a way to blame the other party for your woes. Greed brings out the worst in people.

@ mike-home -- I looked up the "first offer is best" concept. In certain cases there may be some truth to it but it seems to depend on who the buyers are. If they have been researching the market for a while, have made other offers, and are pre-approved and everything, then they are likely on the money.
On the other hand, there is some slight possibility that someone will come along and get emotionally attached to your house and offer more than the market value, but unless they can give a large downpayment they may run into trouble at appraisal.
Below is a link to the reasoning why the first may be the best. You can find lots of counter-examples too, for example on advice threads at zillow.
I think the take-home message is "know your buyers."

Here is a link that might be useful: Argument why first is best

Thanks for the article, but I don't think it is realistic. I am sure there have been cases where a buyer has rejected the first offer, and then all subsequent offers have been lower or none existant.

When a seller and a buyer agent are involved in an offer, how does a seller get to know the buyer? The seller and buyer never talk to each other. If the seller and buyer sat down and discussed the offer perhaps there could be a meeting of the minds and the seller could be convinced that this would be the best offer he/she will receive.

Posted by mike_home (My Page) on Sun, May 13, 12 at 17:28

Thanks for the article, but I don't think it is realistic. I am sure there have been cases where a buyer has rejected the first offer, and then all subsequent offers have been lower or none existant.
When a seller and a buyer agent are involved in an offer, how does a seller get to know the buyer? The seller and buyer never talk to each other. If the seller and buyer sat down and discussed the offer perhaps there could be a meeting of the minds and the seller could be convinced that this would be the best offer he/she will receive.

________________________________________________________

Ha! that's just it. The seller is at a disadvantage when they are working with ONLY a buyer's realtor. The realtors make sure you don't meet their people. It's all a pretense game like the realtors own the RE market and everyone involved in it. Some realtors love to teach you, the FSBO seller a lesson to never try to cut them out, again. I despise this dirty little game. Of course, when both sides have a realtor, the realtors keep both parties apart claiming that it's better that way for business purposes. Sometimes it is, and sometimes it's not. If your realtor is excellent, yeah, you're better off in the background...

AS a FSBO, you can ask the buyer's realtor a little about the buyers. The realtor doesn't have to tell you anything. Then again, I would remind them that they will be getting a commission off YOUR house. Anyway, if you're really good you may be able to pick up "on things" to figure out what your leverage is. If the realtor plays hardball, you will have to decide if you're comfortable dealing in the dark.

BTW-the first offer is NOT always the best offer. Sometimes you get a crazy person who will just throw a lowball to test your desperation. It all depends what type of person the buyer is.

When I listed my house like OP, I had 2 offers. One from a realtor/buyer. The realtor was nice enough to share some info on his buyer,and I picked up a vibe that his buyer was a royal PITA....so I didn't want to cooperate with the negotiations that much.

The second offer came from regular buyers. I chose the people without the realtor. I read them and their intentions like a book. I did give them the 3% savings, and we closed. I will say this: it was NOT a smooth transaction. Most transactions are a pain, anyway. I had to deal with everything myself and tell THEM what to do. The market was tanking and they wanted to back out....There was a point that I thought a GOOD realtor would have been a nice buffer between us.

I can not fully explain why the first offer is usually the best, but in my experience, it is true.
One reason is that if a seller rejects the first offer, chances are the seller will be on the market for longer than the avg. market time. The next buyer knows this and assumes the seller is more motivated than if the offer came in before the avg. market time. The opposite is true too. If the buyer makes an offer after the home has been on the market after only a week, the seller swears his home is hot Sh__. Even though chances are that it was only good timing. So in either scenario, one party has a psychological advantage over the other right off the bat. This translates, a lot of the times, into a better deal for that party. Of course there are exceptions.
That is my take on it, and I am sticking to it.

I walked away from this thread because I thought it was going nowhere fast. Glad I came back, now THIS is an interesting discussion. As previously stated, I thought I was being blacklisted and suddenly several RE agents called and wanted to show my house, without previewing it. Prior to those two, I was told by several REA's that they couldn't show my house without a preview so I allowed 5 to preview it. They all tried to sell me services and not one of them has brought a buyer to look at it. Hmmm.
So anyway, The two REA's came that didn't preview it, to show the house and said I'd be on the deck if they had any questions. These Two REA's showed the entire house and saved the yard for last, introduced me to the buyers and we had a discussion and they asked questions which I gladly answered. I gave copies of the floor plan ONLY to both buyers and REA's so they would see there were no numbers being exchanged or whatever. I think it was in the REA's best interest to introduce us and show representation, otherwise, if the buyers were curious, they could come at another time And approach us, which I would not invite. A deal is a deal and I have morals. One of those REA called in a few days and asked if I had any interest in the property, which luckily we did because my reply was honestly Yes, she than asked if we could be out of the house within 45 days as the buyer needed to a quick close. My answer was yes. She brought them back a second time, but an offer has not been made. The buyer also asked me my timeline so I believe they need to find a home. I presume if I said that that showings had been slow, that would have been favorable for the REA to recommend a low offer. So I feel I dodged a bullet, I am LEARNING. We shall see what happens, we are in a good position. We can leave soon or hang out for the summer, and we have a empty house in the family so anything goes.

Also, in my previous post when I said I was paying the buyers agent, I would pose my questions to them, I had meant to say paying my RE Lawyer and would ask the lawyer question. Although I will be paying a buyer agent, I realize their loyaly is to the buyer first and foremost. I hope they will work with me onestly, but I'm no fool, I am practical.

Thanks for all the helpful discussions.

"I can not fully explain why the first offer is usually the best, but in my experience, it is true. "

It is called history.

Even though it is theoretically 'private' the value of rejected offers does not seem to stay that way for long.

Another thing with a first offer is that it is an opportunity to move on. My IL received an offer on their house and the buyer wanted the fridge. They were affronted at the offer because they never said the fridge was included and they thought the offer was too low. They did not negotiate. It was another 6 months before they sold the house during which time they had to pay the mortgage, insurance and deal with the stress. A new fridge would have just been one month's mortgage payment but that decision cost them $8K. That is a rather hefty stupid tax.

I think that all offers should be responded to. If not accepted, then make a counter offer. Sellers that get offended and refuse to respond to offers are cutting off their nose to spite their face.

"Sellers that get offended and refuse to respond to offers are cutting off their nose to spite their face."

No, it is a rejection of the offer, for whatever reason the seller has.

If they make a counter the offer remains 'in play' until the counter dies (time limit) or is withdrawn (before being accepted by buyer).

I rarely take the time to respond to low-ball or other offers with unacceptable terms.
At best I might have my RE agent tell the buyers agent what term(s) are objectionable.

Received a low ball offer. It sys in the contract if I do not respond within 3 business days than the contract is final and binding even with out my signing it. Will call the lawyer tomorrow, but that sounds unreasonable. In other words if I refuse to respond they can proceed with the sale?

I am sure you are misreading it somehow. To make the contact valid, you would need to sign. Please quote the text here for all to see.
If it does say something like that, then either throw it in the trash or counter with your terms and put in the same verbage!

Contract:
Attorney review clause:
The buyer or seller may choose to have an attorney study the contract. If an attorney is consulted, the attorney must complete his or her review of the contract within a three day period. This contract will be legally binding at the end of this three day period unless an attorney for the buyer or the seller reviews and disapproves of the contract

Notice given from RE agent long with contract:
The contract becomes final and binding unless your lawyer cancels it within the following three business days. If you do not have a lawyer, you cannot change or cancel the contract unless the other party agrees.

Hmm smart move on the agent to make sure they get a response. Even if it is lowball counter back and strike that clause in your counter. Doesn't hurt you to counter and then you also null the contract.

The wording means if both parties agree on all items with the contract and both parties SIGN it, there is a 3 day period for lawyer to review and the 3 day period starts when all parties sign.

If everyone signs and it takes longer than 3 days for lawyer, then any changes per lawyer review are no longer allowed.

I agree w/sweettea, it is referring to time for review AFTER both parties sign the contract. Before then there is no contract.
Imagine if buyers can make a binding offer without approval of the seller, I make such offers around town today.

yes Sweatpee, that is what my Lawyer said. I am crossing my T's anyway.

The offer was $70k less than asking, with a prequalify letter from The bank HE WORKS at, not a Pre-Approval. And they want to close in 45 days from yesterday. THEY have to be out of their rental, there's a lease.
There are foreclosures in my neighborhood that are priced higher than the offer and would likely not close for months on end. Our house is in a more desirable cul de sac with a great yard and very well maintained. We are retiring, we can stay for another year if necessary, but would like to sell now and they know that. Don't know what they are thinking other than,

"It's a sellers market, let's lowball the crap out of this and and they will meet us halfway. "That's a large halfway!

The realtor Acknowledged that this was very low, but they insisted.

What would be your counter offer?

Since it's a lowball offer, I probably wouldn't drop the price MUCH, with the lowest point being where the halfway point between your counter and their original offer is something you'd be willing to accept.

Since you've been on the market such a short time and already have an offer, I'd respond just before your response is due - not sooner - then give them a long time to respond back to you, reserving your right to cancel your counter-offer at any time prior to receiving their written acceptance.

Drag them out to preserve your opportunities for a better offer from another buyer --

Counter with the same # that you would have if the offer was something better.

What is your asking price? What is your current market value of your home based on comparables of homes SOLD in last months?

If your asking price is $750k, then $75k off asking price is within 10%. If you are priced at $150k, then $75k off asking price is asking for a half price sale. Unless you tell your asking price, $75k won't help us give you advice.

Did you price your home high because you are testing the waters or because you can stay another year?

Maybe their offer price is within $25k of true market value and maybe you priced too high. or possibly you priced your home very fair to start and didn't want to budge much because your price is low to begin.

Pls give more info as to how you arrived at your asking price so we could have a better educated guess as to how you should counter.