Neighborhood resident realtor devaluing property

RR3 (Texas)
Posts: 40

Posted:

We have a neighborhood realtor who is selling homes within our community at a lower price range to get her commission paid quicker. She is basically setting a safe price where comps in the area show that she can list for a higher price. She is basically undervaluing our home values. I wanted to know, can the board, and its not in the CCR's, implement something to stop her from this tactic? Basically, implement a rule to stop her from selling below market value. There are some homeowners who are friends with this realtor and believe that she is selling fast because she is good when in fact that's not the case at all. Please advise. THanks

RichardP13 (California)
Posts: 3,868

Posted:

The only thing you could do is find your local Realtor Association and file a complaint.

MarkM31 (Washington)
Posts: 494

Posted:

Good luck proving your assertions. Her clients are content, or they would not agree to sell, correct? This has MYOB written all over it.

MichelleK5 (New York)
Posts: 161

Posted:

Quote:

Posted By RR3 on 06/12/2017 9:08 AM

We have a neighborhood realtor who is selling homes within our community at a lower price range to get her commission paid quicker. She is basically setting a safe price where comps in the area show that she can list for a higher price. She is basically undervaluing our home values. I wanted to know, can the board, and its not in the CCR's, implement something to stop her from this tactic? Basically, implement a rule to stop her from selling below market value. There are some homeowners who are friends with this realtor and believe that she is selling fast because she is good when in fact that's not the case at all. Please advise. THanks

Are you seriously trying to dictate what your neighbors can sell their homes for? WOW..

The realtor isn't doing anything wrong. The price she's selling for is agreed upon by the owners. You have no idea what their discussions are, nor do you know why the owners are selling below other comps. Maybe they need to for financial reasons? Who knows, but it's certainly none of your business nor can you do anything about it to be honest. Try and you'll wind up in court.

RR3 (Texas)
Posts: 40

Posted:

No, trying to stop a realtor from selling below home value. There are other neighbors who have inquired and feel the same way. They are fast selling due to lower prices and bringing in a certain type of clientele. I think its ok to ask the question and there are certain neighborhoods where HOA's do dictate the minimum home price for sale. Not saying we need to do that but wanted to ask.

MarkM31 (Washington)
Posts: 494

Posted:

Post count=0

RR has left the building?

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By n/a on 06/12/2017 10:48 AM
No, trying to stop a realtor from selling below home value.

How noble of you

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By n/a on 06/12/2017 10:48 AM
... there are certain neighborhoods where HOA's do dictate the minimum home price for sale.

I've never heard of that, has anyone else? I do recall reading that there are some where the association has right of first refusal so they could offer more than the going offer.

Escaped former treasurer and director of a self managed association.

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By DouglasK1 on 06/12/2017 11:36 AM

Posted By n/a on 06/12/2017 10:48 AM
... there are certain neighborhoods where HOA's do dictate the minimum home price for sale.

I've never heard of that, has anyone else? I do recall reading that there are some where the association has right of first refusal so they could offer more than the going offer.

I doubt it also, except in possibly the most extreme situations imaginable, such as maybe Beverly Hills. But regardless, the minimum price would have to be constatly adjusted due to pressures on the market.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I know from my own experience that when I sold my house I listed it at 75K. The buyer offered me 75K. However, once the house was appraised it only was at 74.5K. I had to pay the buyer $500 difference. So one can ask for a higher price all day long, but once that home is appraised they only can sell at that appraised price.

Many people think they can just put any sales price on their home. You sure can. The reality is that banks determine the price via appraisals. So you can put a million dollars on your home because you live next door to million dollar house... It's just that you live in a 2 bedroom shack while that house is a 7 bedroom wonder...

Former HOA President

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By MelissaP1 on 06/12/2017 11:57 AM
I know from my own experience that when I sold my house I listed it at 75K. The buyer offered me 75K. However, once the house was appraised it only was at 74.5K. I had to pay the buyer $500 difference. So one can ask for a higher price all day long, but once that home is appraised they only can sell at that appraised price.

Many people think they can just put any sales price on their home. You sure can. The reality is that banks determine the price via appraisals. So you can put a million dollars on your home because you live next door to million dollar house... It's just that you live in a 2 bedroom shack while that house is a 7 bedroom wonder...

Hate to burst your bubble, but your comments are inaccurate. As I mentioned to you before I will generally only comment on areas I have some form of expertise. In this instance, my experience is working for a mortgage banker.

You can sell your home for whatever you want, to a limit. In some areas, selling your home to a friend for half the value would be an issue. BUT, the price of the home is NOT determined by the appraisal, the LOAN is.

I recently sold my house in my former HOA. The listing price was $580K, the buyer offered $550K and the appraisal came in at $535K. The home was sold for $550K. To get an 80% loan, the buyer had to put down $107K, PLUS $15K, (difference between selling and appraised price).

The LTV (loan to value) on a purchase is based on the Purchase Price or the Appraised Price, WHICHEVER is lower.

In the same scenario, if the listing price is $550K and the selling price is $550K and the appraisal comes in at $580K, the loan will be based on the purchase price of $550K.

PitA
Posts: 1,416

Posted:

..... and bringing in a certain type of clientele.

O ~ M ~ G

MORE Homeowners

The Horror

The Horror

(picture Marlin Brandon in the ending of 'Apocalypse Now')

MichelleK5 (New York)
Posts: 161

Posted:

Quote:

Posted By RichardP13 on 06/12/2017 12:23 PM

Posted By MelissaP1 on 06/12/2017 11:57 AM
I know from my own experience that when I sold my house I listed it at 75K. The buyer offered me 75K. However, once the house was appraised it only was at 74.5K. I had to pay the buyer $500 difference. So one can ask for a higher price all day long, but once that home is appraised they only can sell at that appraised price.

Many people think they can just put any sales price on their home. You sure can. The reality is that banks determine the price via appraisals. So you can put a million dollars on your home because you live next door to million dollar house... It's just that you live in a 2 bedroom shack while that house is a 7 bedroom wonder...

Hate to burst your bubble, but your comments are inaccurate. As I mentioned to you before I will generally only comment on areas I have some form of expertise. In this instance, my experience is working for a mortgage banker.

You can sell your home for whatever you want, to a limit. In some areas, selling your home to a friend for half the value would be an issue. BUT, the price of the home is NOT determined by the appraisal, the LOAN is.

I recently sold my house in my former HOA. The listing price was $580K, the buyer offered $550K and the appraisal came in at $535K. The home was sold for $550K. To get an 80% loan, the buyer had to put down $107K, PLUS $15K, (difference between selling and appraised price).

The LTV (loan to value) on a purchase is based on the Purchase Price or the Appraised Price, WHICHEVER is lower.

In the same scenario, if the listing price is $550K and the selling price is $550K and the appraisal comes in at $580K, the loan will be based on the purchase price of $550K.

Thank you for this post.

We have a vacation home in town with a population of less than 700 people, most of whom are part time residents like us. It's a vacation town with forests, lakes, and no commercial properties are even allowed.
The homes here are always appraising for less than their value as not many are sold, so when one comes up, they get compared to the latest sales which happen in the town over. Problem is, homes there sell for much less.

The reality is quite different from the appraisal though, and there have been bidding wars on properties here.

Ours was also appraised at about 50k less than what it's really worth (and ours was a huge fixer upper.) All that meant is we had to put more down as the loan was less.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Oh so this did not happen to me? Good to know. I will continue to make sure I live in your world and your world alone... Reality is what reality is. My house sold $500 less than what I listed and had accepted an offer for. Fact and reality... No scenarios needed...

Former HOA President

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By MelissaP1 on 06/12/2017 12:38 PM
Oh so this did not happen to me? Good to know. I will continue to make sure I live in your world and your world alone... Reality is what reality is. My house sold $500 less than what I listed and had accepted an offer for. Fact and reality... No scenarios needed...

He's pointing out that the sale and loan amounts are seperate items. Since your sale was driven by the buyers loan, you chose the course of action that you did. But the inverse also happens a lot in hot markets and bidding wars.

RichardP13 (California)
Posts: 3,868

Posted:

Do people forget what happened in the last housing crisis in 2007-2008? From 2001-2007, homes were over appraised. Homes would sell for $600K when they actually were worth $500K, but lenders demanded from appraisers that there appraisal come in at purchase price OR they would find someone who would.

If someone wants to overspend on something, they have that right.

I have a rental property that we purchased for $150K in 1998. In 2006, it was appraised for $620K, in 2011, it was appraised at $250K and two weeks ago it was appraised at $520K. In a couple of years, we are due to hit the bubble again. Hope it isn't as bad as the last one.

TimB4 (Tennessee)
Posts: 21,059

Posted:

RR3s post count went to zero.

This could be a glitch. However, it's often an indication that the individual has resigned from the forum.

KerryL1 (California)
Posts: 14,550

Posted:

I noticed the post count at 0 too, but sometimes, the info exchange is valuable to others anyway.

A couple of years ago when we had a few short sales here, and a few sol for quite a bit under "market value," some sellers were frantic that they'd affect the sales prices of their own condos, but it just didn't happen.

FredS7 (Arizona)
Posts: 927

Posted:

Any owner is entitled to decide whether they want the best price or quickest sale. The real estate agent doesn't accept a price, the owner does.

PitA
Posts: 1,416

Posted:

... Hope it isn't as bad as the last one. ...

I, on the other hand, have leveraged MY assets on the assumption of a far worse 'bubble crash'.

When it happens I juuuust may be able to relocate to Madison Avenue, NYC.

Here's hopin'.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By n/a on 06/12/2017 9:08 AM

We have a neighborhood realtor who is selling homes within our community at a lower price range to get her commission paid quicker. She is basically setting a safe price where comps in the area show that she can list for a higher price. She is basically undervaluing our home values. I wanted to know, can the board, and its not in the CCR's, implement something to stop her from this tactic? Basically, implement a rule to stop her from selling below market value. There are some homeowners who are friends with this realtor and believe that she is selling fast because she is good when in fact that's not the case at all. Please advise. THanks

The agent is not setting the sale price, the owners are. It appears some fellow owners are bailing out either that or you are under the impression your home is worth more than it is. Which is it?