Real Estate Agents (arrogance or reality)

ViolentGranny wrote: ↑ Hello guys, need your help and honest opinion.

To put in context, I'm looking to buy in Montreal surrounding area (north shore /south shore). My budget is around 540k$ with a 10% cashdown. I'm already pre-approved for that amount and seriously looking to buy for June/July, I don have a house to sell.

Here's what happened:
Yesterday, I had 2 calls with 2 different real estate agents and one of the first thing they both told me was: ''you better hurry and be prepared to bid over the asking price ''. One told me that right after I presented myself, which instantly killed the bond.

Now I'm far from being a professional seller, but wouldn't it be something you don't tell the Client right away? Like, if he's not ready to get rape by the market and throw his money in the air, he doesn't stand a chance? I was expecting the agents to reassure me that he would do his best to advise me on a fair price, but I felt like they tried to screen me right off the bat.

Were my expectations too high or It's very normal and common to tell your client right away?

I don’t know what the climate there is like but in Toronto it is like that and someone saying that is being honest. Right now the way things are going for condos here even is if you want a decent one you may need to bid. I do think the realtor probably should not say this on a first phone call as that is a turn off and not very classy. Any professional that works with people for a living should take the first call to build repoire and assess what a person is looking for. They could also give an update of the market and talk about areas where there is bidding just to make the person aware so they keep that in mind when they are looking for property. Like I said I don’t know how it is there but in Toronto the market is quite hot and even condos that were not doing well now the sellers have confidence. And a lot of houses have lots of bidding. You have to keep in mind that you have so many tools to use to check on prices and you can see what properties may require bidding and so on. You can keep interviewing agents and find one you click with and can trust - you definitely want someone you are able to trust. Sometimes it’s not what people say but the way they say it - I think maybe this one said it in a strange way but a good realtor may have been able to word it different or wait till later to show you what is going on

^^^ this. Also, don't forget that their culture is a bit different than Toronto (maybe a little more European) and they're generally a bit more blunt which can definitely come off as arrogant

ViolentGranny wrote: ↑ Hello guys, need your help and honest opinion.

To put in context, I'm looking to buy in Montreal surrounding area (north shore /south shore). My budget is around 540k$ with a 10% cashdown. I'm already pre-approved for that amount and seriously looking to buy for June/July, I don have a house to sell.

Here's what happened:
Yesterday, I had 2 calls with 2 different real estate agents and one of the first thing they both told me was: ''you better hurry and be prepared to bid over the asking price ''. One told me that right after I presented myself, which instantly killed the bond.

Now I'm far from being a professional seller, but wouldn't it be something you don't tell the Client right away? Like, if he's not ready to get rape by the market and throw his money in the air, he doesn't stand a chance? I was expecting the agents to reassure me that he would do his best to advise me on a fair price, but I felt like they tried to screen me right off the bat.

Were my expectations too high or It's very normal and common to tell your client right away?

not the worst thing in the world but yes kind of unprofessional..... they could gab with you for a bit about where you want to buy, expectations etc.

and THEN tell you what the market is like right now....

once again, realtors are a dime a dozen and not the most professional people in the world......why do you think they get such a bad rap....

you just found out .....

ViolentGranny wrote: ↑ Hello guys, need your help and honest opinion.

To put in context, I'm looking to buy in Montreal surrounding area (north shore /south shore). My budget is around 540k$ with a 10% cashdown. I'm already pre-approved for that amount and seriously looking to buy for June/July, I don have a house to sell.

Here's what happened:
Yesterday, I had 2 calls with 2 different real estate agents and one of the first thing they both told me was: ''you better hurry and be prepared to bid over the asking price ''. One told me that right after I presented myself, which instantly killed the bond.

Now I'm far from being a professional seller, but wouldn't it be something you don't tell the Client right away? Like, if he's not ready to get rape by the market and throw his money in the air, he doesn't stand a chance? I was expecting the agents to reassure me that he would do his best to advise me on a fair price, but I felt like they tried to screen me right off the bat.

Were my expectations too high or It's very normal and common to tell your client right away?

Are you upset with what they are telling you because you don't like what you are hearing or are you upset about how they are telling you this?

Could this be a situation where you expect to purchase something with $540k but the going prices are $600k? This is usually the most common disconnect between buyers and realtors, so realtors usually cut their losses early enough and tell you in a round about way that you don't have the budget to get what you want. Not saying it's right or wrong, just my perspective as this is the most common thing with most inbound from potential clients. In Quebec I can imagine they are very direct and to the point and skip the patty cakes chat.

They're right. The longer you wait, the more you will pay. And, in your price range, you will be paying over ask. You can find a realtor that will blow smoke up... or, you can sign with one that tells it like it is, knows the market, will work hard for you, and will get your deal done.

Agree with the poster 2 posts above. Realtors should tell you what is the approx price to be competitive for a particular house or neighbourhood. Whether you feel like you need to bid over asking is entirely your call, because only you are riding the train after mortgage payments start. They should be honest about your bid’s prospect of winning, but shouldn’t be pressuring you to bid to win. Yes the end goal is to get a house, but not at any cost.

RichmondCA wrote: ↑ Are you upset with what they are telling you because you don't like what you are hearing or are you upset about how they are telling you this?

I don't know if upset it the right word, more like surprised and disappointed at the same time, if that makes any sense?
I'm feeling this way because how they are telling me this right away before I have the chance to talk about what I'm looking for. I'm not really used to this kind of behaviour because in my line of work, we don't really behave like this. I was wondering if it's common in the real estate industry.

RichmondCA wrote: ↑ Could this be a situation where you expect to purchase something with $540k but the going prices are $600k? This is usually the most common disconnect between buyers and realtors, so realtors usually cut their losses early enough and tell you in a round about way that you don't have the budget to get what you want.

Not at all, because I didn't even had the chance to tell about my budget or what I'm looking for before they tell me about the overbidding thing.

Look around and try to find what you like. Think you are in Flea Market and you are searching for the best.

Tiger131 wrote: ↑ Agree with the poster 2 posts above. Realtors should tell you what is the approx price to be competitive for a particular house or neighbourhood. Whether you feel like you need to bid over asking is entirely your call, because only you are riding the train after mortgage payments start. They should be honest about your bid’s prospect of winning, but shouldn’t be pressuring you to bid to win. Yes the end goal is to get a house, but not at any cost.

This is exactly what I was expecting them to tell me. An agent coming out this way would 100% come out as honest and professional.

Unfortunately, the first 2 agents were very different. I guess I'll have to interview a few more!

depends on how you take it. It may be considered to be blunt and honest, or downright offensive.

From the purely practical point of view, they don't want to waste time. And nor do you.
If there's realistically no chance in cooperating, then its best for both parties to understand that from the start, instead of dancing around for weeks, only to have it crash and burn.

Think of it you had a high-demand hot item to sell on Kijiiji - you've got a lot of calls and you're confident you can sell at $100.
You don't mind coming out to say "the price is firm". And you'd probably add in that buyer must pick up on weekends only. And add in any other conditions that make it convenient to you - because you're confident of your ability to sell easily. You don't want to waste time with low-ballers, people who want to meet 5km away, people who ask tons of petty questions, etc.

it's not arrogance. it's reality. houses in toronto sell with up to 50 offers.

heck even some condos now are selling for multiple offers. some agents are now listing condos for the purpose of multiple offers.

I think the moral of the story if any is some agents are willing to work with you and let you learn the hard way about how competitive your bids are after losing out on a couple of offers, provided there is good faith in what you are doing.....some just wants you to go over the deep end right out of the gate so they can make a quick dime.

ViolentGranny wrote: ↑ This is exactly what I was expecting them to tell me. An agent coming out this way would 100% come out as honest and professional.

Unfortunately, the first 2 agents were very different. I guess I'll have to interview a few more!

Regardless if it's blunt, or to the point, you need to look for someone you are comfortable with, if the first 2 didn't do it for you interview more until you find the one you think is the right fit for you.

the reality is , on those 50 to 60 offer homes, at least 40 agents are wasting both their clients time & their time..... both are too stupid to realize what is going on in the market
and that they have no business submitting a bid .....

i.e. 699k asking price and submitting an offer for $750k , when you know its gonna be 800 - 900 k

the majority of offers are not even close .....

SomeOtherDude wrote: ↑
Think of it you had a high-demand hot item to sell on Kijiiji - you've got a lot of calls and you're confident you can sell at $100.
You don't mind coming out to say "the price is firm". And you'd probably add in that buyer must pick up on weekends only. And add in any other conditions that make it convenient to you - because you're confident of your ability to sell easily. You don't want to waste time with low-ballers, people who want to meet 5km away, people who ask tons of petty questions, etc.

This is probably the best analogy to describe what happened. It doesn't make it right, OP keep looking and you will find someone fitting. It's a bit of a balancing act, you also don't want an agent that's easy to get along with but can't close a deal because he/she is doing a bad job of closing the gap between reality and your feelings (at the expense of losing you as a client). That's not to say the first two are the right ones for you, but the direct behavior from the beginning is the most 'efficient' for both sides despite it being off putting initially.

joepipe wrote: ↑ the reality is , on those 50 to 60 offer homes, at least 40 agents are wasting both their clients time & their time..... both are too stupid to realize what is going on in the market
and that they have no business submitting a bid .....

i.e. 699k asking price and submitting an offer for $750k , when you know its gonna be 800 - 900 k

the majority of offers are not even close .....

Pretty much, the first two agents OP spoke to are most likely in the top 10 offers likely to close, the other 40-50 offers are agents that are nice that haven't had the 'come to reality' moment with their client. Waste of everyone's time if people could communicate better.

Keep in mind that the Real Estate forums are actively used by real estate agents and multi-property investors. So take that into consideration when you read some of the comments.

It's really a very difficult market for buyers. It's easy-money these days for selling agents. They're making it really easy on themselves. They know, in this seller's market, that the seller will be happy with the outcome, regardless.

They are NOT acting in the overall best-interests of the client. They're NOT interested in looking at every possible bid. They're eager to get the deal secured, get their commission, and move on to the next deal.

BUT, it is true that, unless a property is over-priced significantly, one should expect multiple offers these days.

ViolentGranny wrote: ↑ Were my expectations too high or It's very normal and common to tell your client right away?

RxMills wrote: ↑ Keep in mind that the Real Estate forums are actively used by real estate agents and multi-property investors. So take that into consideration when you read some of the comments.

It's really a very difficult market for buyers. It's easy-money these days for selling agents. They're making it really easy on themselves. They know, in this seller's market, that the seller will be happy with the outcome, regardless.

They are NOT acting in the overall best-interests of the client. They're NOT interested in looking at every possible bid. They're eager to get the deal secured, get their commission, and move on to the next deal.

BUT, it is true that, unless a property is over-priced significantly, one should expect multiple offers these days.

Agreed. Conceptually, an agent shouldn’t care if a buyer/seller over/underpays 50-100k. Commission wise it’s like an extra $2500 pre tax.

It’s in the agent interest to get the deal closed. So for selling agents it means getting the seller to accept any deal ASAP, even if it’s lower than optimal

And it means getting a buyer to submit the best offer possible even if it’s 50k overpay.

It’s just a huge conflict of interest to have an agent collect a commission % instead of an hourly pay based on time spent.

lolbeast wrote: ↑ It’s just a huge conflict of interest to have an agent collect a commission % instead of an hourly pay based on time spent.

Australia/NZ have figured it out better - they use a sliding commission scale .
e.g. (not sure of the real-life numbers in practice)
3% commission on first 500K
2% on next 200K
1% on next 200K
..... and on