Realtor wants to do verbal offers

I'm putting in pretty low offers and my realtor wants to give verbal offers to the listing agents to see if they're even interested, instead of a written offer.

I'm concerned she's doing this in a nonchalant way that doesn't convey 1) that it's a serious offer or 2) outline our terms (like cash and as-is).

I'm not so keen on writing up a contract on every offer, but wondered if I could submit my own letter of intent and if they show interest THEN have my realtor write up a contract.

Or maybe send my letter of intent to my realtor and have her forward it the listing agent.

What do you think?

Edited: 06/26/2010 at 11:58AM

Richard Warren

Real Estate Investor · Las Vegas, Nevada

1825 posts
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Icon_minipost Mar 09 '10, 12:57 AM

The realtor works for YOU. If he/she doesn't want to do a written offer then find a new agent. A verbal offer can easily be interpreted as testing the water rather than a serious offer.

:cool:

Edited: 06/26/2010 at 11:58AM

Jeff Price

Residential Real Estate Agent · Memphis, Tennessee

11 posts
21 Influence

Icon_minipost Mar 09 '10, 01:08 AM

It depends on the relationship your Your agent has with listing agent. Some listing agents will not take offers without a contract, proof of funds and copy of earnest money check. If the home is listed on reotrans or res.net you have to submit everything or the web site kicks it out.

Edited: 06/26/2010 at 11:58AM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
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Icon_minipost Mar 09 '10, 01:14 AM

Thanks, Richard. I was thinking the same thing about verbal offers. Since I'm submitting such a low number, I'd think I would want to look as serious as possible. I feel unsure of myself, though, and hesitate to tell my realtor that.

Jeff,
What do you mean their relationship? (Do you mean if they know each other?)

Edited: 06/26/2010 at 11:58AM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
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Icon_minipost Mar 09 '10, 02:51 AM

So is it a waste of time for me to send letters of intent for now?

Is this a good way to go? Or are written contracts the only way to get a seller's attention?

Edited: 06/26/2010 at 11:58AM

Raymond B.

Real Estate Investor · Wallingford, Connecticut

250 posts
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Icon_minipost Mar 09 '10, 06:47 AM

My real estate agent, writes up as many offers as I want to submit. He knows that this is just a "numbers game" and sooner or later, my offer will be accepted.

Ray in Ct.

Edited: 06/26/2010 at 11:58AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
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Icon_minipost Mar 09 '10, 06:52 AM

Find an agent that does some form of electronic contracts. Once you have the template set up, making a written offer on a specific property is a five minute job.

Edited: 06/26/2010 at 11:58AM

Jon Holdman, Flying Phoenix LLC

Christopher Davis

Real Estate Investor · St. Louis, Missouri

153 posts
1742 Influence
4 Awards

Icon_minipost Mar 09 '10, 07:43 AM

Verbal anything with REI

and

HELL NO

just my opinion

Chris

Edited: 06/26/2010 at 11:58AM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
2 Awards

Icon_minipost Mar 09 '10, 11:20 AM

Haha! Chris, I guess you don't think verbals are taken seriously either, huh? Well, it's good to know my hesitations weren't off.

I have another two properties I wanted to submit offers on with a different realtor and this time I said "I do NOT want to put in a verbal offer - can you do electronic contracts?" And she said she could!

She emailed me the docs, I'll print, sign and fax them back tomorrow.

Thanks for the input! I'll also have more courage to tell the agents what I want. I was shocked that when I told her what I wanted, wala! There it was.

Edited: 06/26/2010 at 11:59AM

Carla Reid

Residential Real Estate Agent · Phoenix, Arizona

23 posts
430 Influence
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Icon_minipost Mar 09 '10, 01:05 PM

Hi Kelly,

Plain & simple..... that's just shear laziness on the part of the agent.

Your agent's contract writing platform should allow for her/him to save a template for your contracts which typically contain the same clauses and terms. Saving a lot of time writing offers. Your agent should be able to write up an offer in 5 minutes tops, upload it to an e-signature program such as Docusign, and have it back from you with signatures within a few minutes.

Like Jon stated, it's best to find an agent that utilizes an electronic signature platform. It saves a ton of time and paper!

Verbal offers aren't taken seriously and aren't a good idea. If your offer is submitted in writing, whether or not the listing agent feels the offer is suitable or will be accepted, they have an obligation to present it to the seller.

And don't hesitate to let your agent know exactly what you want, and how you'd prefer to conduct business. (As long as it is legal and ethical, of course :mrgreen: )

If he/she doesn't like it, move on to an agent that's investor-friendly and actually gets it! :wink:

Edited: 06/26/2010 at 11:59AM

Carla Reid

Residential Real Estate Agent · Phoenix, Arizona

23 posts
430 Influence
1 Award

Icon_minipost Mar 09 '10, 01:09 PM

Oops, didn't catch your last post.

Looks like you may have found an agent to suit your needs.

Good luck with the offers!

Edited: 06/26/2010 at 11:59AM

Tim W.

Real Estate Investor · Indiana, Indiana

4333 posts
23859 Influence
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Icon_minipost Mar 09 '10, 06:00 PM

My agent does it all the time with my lowball offers with the intention of seeing how low the bank can go. He'll also do e-mail offers. The reason we don't do written offers all the time is the reams of addendums we'd have to fill out. I'm cool with it.

Edited: 06/26/2010 at 11:59AM

Mark Brian

Real Estate Agent · Anderson, South Carolina

313 posts
2065 Influence
6 Awards

Icon_minipost Mar 09 '10, 09:37 PM

Find an agent that wants to work for/with you and helps you to succeed by submitting written offers. It will just help your chances of getting your offers accepted IMHO.

Edited: 06/26/2010 at 11:59AM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
2 Awards

Icon_minipost Mar 09 '10, 11:04 PM

Hi Carla! Thanks for commenting.

The other realtor I'm using to submit offers emailed me the docs, and I have to fax them back. (She said she would save my contract for future use.) That sounds different from an e-signature template that you described. Am I right?

Also, what kind of buyer's agreement should I use? I don't want to sign exclusively with her (since other realtors are sending me properties as well). I really wanted to sign a transaction-specific type of agreement. Anyone know what that's called?

Thanks so much for your help!

Edited: 06/26/2010 at 11:59AM

Mark Brian

Real Estate Agent · Anderson, South Carolina

313 posts
2065 Influence
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Icon_minipost Mar 10 '10, 11:45 PM

In my state it would be the same EBA agreement, just we would only specify the agreement was for this one property and not a wider range of properties or areas/price ranges. Your state will be different, but the agent should be able to help you.

Edited: 06/26/2010 at 12:00PM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
2 Awards

Icon_minipost Mar 11 '10, 12:03 AM

Thanks, Mark!

That's what I was hoping to do. I asked her if we could do something like that, and I'm waiting to hear back from her.

What would new investors do without bp?!

Edited: 06/26/2010 at 12:00PM

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
2 Awards

Icon_minipost Mar 11 '10, 12:11 AM

She'd emailed me back as soon as I finished posting above.

She said that I need to put a time limit on our agreement and that I may not work with anyone else during that time limit.

She also said that generally people work with one realtor, since there could be a problem if two realtors sent me the same property. She said if we were going to work with more than one realtor she'd rather opt out of working with us.

Does she have a point?

Edited: 06/26/2010 at 12:00PM

Tom Wilhelm

Real Estate Investor · Arlington, Massachusetts

15 posts
173 Influence
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Icon_minipost Mar 11 '10, 01:49 AM

Originally posted by Kelly Payne

She'd emailed me back as soon as I finished posting above.

She said that I need to put a time limit on our agreement and that I may not work with anyone else during that time limit.

She also said that generally people work with one realtor, since there could be a problem if two realtors sent me the same property. She said if we were going to work with more than one realtor she'd rather opt out of working with us.

Does she have a point?

That sounds more like a standard "retail buyer" oriented sales pitch to me. She wants easy, quick, short-term money rather than a long-term mutually beneficial business relationship.

You should find a local realtor who knows how to work with investors and is interested in your goals and how they can help you achieve them.

Edited: 06/26/2010 at 12:00PM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
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Icon_minipost Mar 11 '10, 01:50 AM

Here's another thread where these "exclusive buyer agent" agreements are covered:
http://www.biggerpockets.com/forums/21/topics/45169-what-is-typical-in-buyer-s-agreements-

You can tell I'm not a fan. :wink:

Originally posted by Kelly Payne

She'd emailed me back as soon as I finished posting above.

She said that I need to put a time limit on our agreement and that I may not work with anyone else during that time limit. ...

You can't work with anybody else then because you agreeed to allow her to be exclusive - that's by definition.

Originally posted by Kelly Payne

...
She also said that generally people work with one realtor, since there could be a problem if two realtors sent me the same property. She said if we were going to work with more than one realtor she'd rather opt out of working with us.
...

It's good to work with more than one realtor in case any are underperformers (quite a few turn out to be just that). So, if you work with more than one, you have to have some guidelines and policies that you follow so as to be fair.

Face it, getting the auto-sent listings is near zero work / effort for the realtor; just the one-time setup for your search criteria. So, I tell them that whoever gets me a specific listing first and gets me into the property in a timely manner will get to present the offer. Whoever gets me into the property will present all offers (remember, when they sit for a while, you can send in a fresh offer after your original has expired) for that one property; they will not be circumvented if they did that amount of work. And I tell them that I do NOT do ANY EXCLUSIVE buyer agent agreements up front; if that is going to be a problem, we don't need to do business together.

Originally posted by Kelly Payne

...
Does she have a point?

She is putting you in a position where you have to make a decision. I'd say see if you can find some other agents who are willing to work non-exclusively first; if you don't find them, then your choices seem limited.

Edited: 06/26/2010 at 12:00PM by Steve Babiak

Kelly Payne

Real Estate Investor · Tulsa, Oklahoma

32 posts
214 Influence
2 Awards

Icon_minipost Mar 11 '10, 02:42 AM

Thanks, Tom and Steve.

I read the threads and it's good info. I'll need to think about what to do, considering it's been hard for me to find an agent who'll present my offers.

I might sign a 30-day agreement with her (which is what she suggested in the first place) to see how it works out.

So far, my experience has confirmed the theory that you only get mediocre listings from agents you don't have an agreement with. So this might help in the long run...

Thanks again!

Edited: 06/26/2010 at 12:01PM

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