Can a Agent refuse to submit an offer?

Question

I made 2 offers on Bank REO properties the agent I'm working with is telling me that I have to make a higher offer because my offers are coming in under 50% and the bank is going to ignore them.  Can he do this?

Mark Brian · Answer

In my state, I am required to submit all offers, unless I have written instructions from my seller client to not submit offers below a certain price or with certain terms.

Jake Kucheck · Answer

You're right, you can't find out if he's telling the truth or not.  But you can make a pretty good guess based on the facts.

If the property has a low DOM (<21 Days), is below other actives/pendings/solds, and isn't a complete teardown, he's probably telling the truth.

If its got a 120+ DOM, priced high, and hasn't had a showing in months, he's probably full of it.

Either way, offering 50% of ask is a good way to get a great deal, but its also a good way to waste a lot of time.  I'd recommend getting a buyer's agent who can be as efficient as possible submitting these types of lowball offers.  I don't know how it works in Philly, but a one page LOI with your suggested acquisition price is taken seriously here in OC, if its coming from the right agent.  You'll still get a lot of rejection or non-response, but at least you'll save a tree or two :)

Steve Nicewarner · Answer

If the bank has, in writing, instructed him to do so ["don't bother sending me offers at less than 50% of the listing price"], yes. Probably not the brightest idea in the world, but banks haven't been known for being bright.

If you really think the agent is blowing you off, talk to your state's Real Estate Commission. They would be the ones to enforce the rule.

Kevin M · Answer

The only way a bank will accept a offer that low is if its been sitting for a while.(theres usually a reason why its sitting so long also,if its a good deal its usually picked up by investor long before then).Most of my first offers are around 30% below asking but almost always multiple offers so i end up around asking price anyway  on best and last if i want the house or if asking price is too high i dont even waste my time

Jeffrey K. · Answer

Don't waste your time with offers that low.  If anyone has ever gotten a deal like this please prove me wrong, but it is less than one in a million chance.  You will also just piss the agent off and he will be less willing to help you with another deal.

Jose R. · Answer

Jared, 
            
            Don't worry about what the agent says.  It's their job to tell you:  "Oh, there not going to take that."  You submit the offer that woks for YOU regardless of how many offers are submitted.  
            
            I would like to piggyback on what Jake wrote in the previous post; your chances of getting an offer like this accepted are much greater when the property is in need of alot repairs and been on the market for a while.  
            
            Just keep in mind the first offer is hardly ever accepted (unless its a full price offer.)  Keep at it and don't quit!

Jared Johnson · Answer

the listing agent the one representing the bank as the seller.  After talking to him about it he explained to me that there are other offers on the property that are higher than mines.  Personally I don't believe him but there is no way to find out if he is telling me the truth or not.

Will Barnard · Answer

Under the agent's licnese agreement, they are REQUIRED to present ALL written offers, and can not circumvent that, even IF a bank said don't bother with anything below x price. The bank does not hold a re license and therefore it is the responsibility of the licensed agent to submit ALL offers in writing regardless per their licensing rules and regulations.

I will tell you that you are basically wasting your time offerring below 50% of ask price as that will never fly (unless in Detroit, ha ha)

Jake Kucheck · Answer

Jared ar you saying that "your" agent, as in the one solely representing you as the buyer, is telling you this?  Or are you saying the listing agent (the one representing the bank as the seller) is telling you this?  This is an important distinction.

Can a Agent refuse to submit an offer?

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