Chat Plus

Real estate editor Maryann Haggerty and columnist Elizabeth Razzi respond to a question adapted from a recent online chat.

Q How Low to Go: I'm struggling with what to offer on my first home. The prices in the neighborhood I'm looking at are extremely diverse. The most recent sales data are from last summer, and I think the prices should be much lower now. I've been asking my agent what he thinks is realistic, and he won't give me a clue. He keeps saying, "Make an offer, we'll see if it's accepted." Why is he reluctant to give me advice? Advice is the reason I need him, because I don't know what I'm doing.

A Maryann Haggerty: You say, "my agent," but he's only your agent if the two of you have a signed a buyer-brokerage agreement. In any less formal situation, or if there's some version of dual agency, his fiduciary responsibility is to someone else, not to you. Otherwise, I can't figure out why he won't guide you.

Elizabeth Razzi: Even the pros are having a tough time figuring out values right now, but that doesn't give the agent an excuse for hiding under his desk while you fend for yourself. There is a risk that what you thought was a low offer would still be too high. You would only be certain of that after the seller jumped on it and made it a binding contract. Get yourself another agent who can develop a range of likely values for that home, based on sales of similar homes in comparable neighborhoods. If you have signed a contract with Mr. Reticent, ask his broker to transfer you to someone willing to advise you. Above all, make sure your bid is contingent on an appraisal that justifies your price.

M.H.: If there really have been no sales in the neighborhood since summer, sellers could be getting desperate. It won't cost you anything to make a low-ball bid. But don't take it personally if the seller rejects your offer in a huff.

The next Real Estate Live chat will be at 1 p.m. Friday.