Renovators vs. flippers and seller agent helping buyer (agents, fees, house)
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Most homes that have been done have been flipped - think cosmetic lipstick on a pig type stuff, and a lot of the time they don’t even care about the aesthetic of the house. Renovators / rehabber are the ones who will take the time and money to redo the guts of the home and hold their work to a high standard.
We were headed out of the back yard and a guy had arrived at the front. My agent asked if they were an agent. No they were interested in buying and they mentioned that they were a renovator and not a flipper.
Seller doesnt care who buys house. Buyers agent should, so they can calculate in rental market/cap rate after purchase, reno costs if flip and rate of return.
I would think a retail buyer will always pay more than a flipper or renovator or some other type of investor. Investors normally need some kind of profit/overhead built in. Retail buyers will pay more to make their family happy.
I would think a retail buyer will always pay more than a flipper or renovator or some other type of investor. Investors normally need some kind of profit/overhead built in. Retail buyers will pay more to make their family happy.
We're looking in a lower price range and our offer on one property was matched (and accepted) by someone else who offered same as us. Another we offered but not high enough. Cash buyers are our competition and see no way around it.
Important reminder! It is the SELLER who hires the seller's agent to sell the property, usually directing them to do this quickly and to get the best price.
These agendas are not in conflict!
THANK YOU! I think Jack wins the prize for most ridiculous on C-D in 2021. Here's the translation of what he said if anyone didn't understand . . .
Real estate agents are BAD!!! They will work hard to help their client meet their goals!!! Bad agents!!! BAD!!! You should hire an attorney to represent you instead because they know how to read/write contracts but have no knowledge of market conditions, how to market a house successfully, why contracts say what they do, may or may not have any experience with negotiations, likely know little to nothing about how a house is constructed, have no knowledge of staging, and have no connections with tradespeople who could assist with the sale like photographers, videographers, Matterport creators, plumbers, electricians, painters, inspectors, etc.
As always, a fantastic and well reasoned anti-agent post by Jack. In fact, I would say most of the anit-agent posts that are written here read similarly.
Quote:
Originally Posted by TeamLynn
I would think a retail buyer will always pay more than a flipper or renovator or some other type of investor. Investors normally need some kind of profit/overhead built in. Retail buyers will pay more to make their family happy.
I'm finding in my market area that retail buyers are often offering less than flippers. The retail buyers are still factoring in the cost of the renovations much like the flippers. The cost of renovation for them essentially includes the profit the general contractor is looking to make. Plus, the cost of materials is usually higher for the retail buyer because they're installing higher quality finishes in the house compared to the flipper.
I had something happen to me years ago that really illustrates what I'm talking about. I had a client who was buying a $2M house (probably in today's market this would have cost $3-$4M) and they asked the builder if they could pick the kitchen faucet. He said "fine" and he said he would give them a credit toward whatever faucet they wanted in the amount that he was going to spend on the faucet he was planning on installing. They got a $600 credit and were AGHAST. "How could anyone install a $600 faucet in a $2M house???" they asked me. Had the faucet been installed and no one asked how much it cost, I have no doubt that 99.9% of interested buyers would have been 100% satisfied with the $600 faucet. My clients ended up installing a $1500 Waterstone faucet which to me seemed a bit overkill for money spent on a faucet but . . . to each their own.
We're looking in a lower price range and our offer on one property was matched (and accepted) by someone else who offered same as us. Another we offered but not high enough. Cash buyers are our competition and see no way around it.
After multiple threads around this property search you’ve had going for months and months, it’s pretty safe to say that you’re simply underbidding on these properties, or you have an unrealistic view of what they’re worth/what your money can get.
After multiple threads around this property search you’ve had going for months and months, it’s pretty safe to say that you’re simply underbidding on these properties, or you have an unrealistic view of what they’re worth/what your money can get.
Fine line on underbidding. On a rental I offered 102 and the asking was 95.
Was that underbidding?
Out of all the offers they had mine was the highest.
But they sold to someone else at 102 and I believe I was the single high offer and it sold to a cash buyer wiling to match my offer. Lack of success is due to the competition. Cash buyers is one category of competition.
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