My agent is not comfortable with my offers
Member since 2020 · 60 posts · 32 votes
My agent is not comfortable with my offers
Most Popular Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesLet me see if I have the facts right here:
1 - You are making an offer for under the asking price
2 - Your agent doesn't want to make the offer
3 - If the offer were made, it could be accepted and you would get a property at a discount.
4 - If the offer were made, it could be turned down with a counter offer from the seller, or....you could make another offer higher than the first
I'm leaning towards dumping your agent. Your agent is supposed to be working for you, not against you. They can recommend you make a higher offer if they think someone else will, and they would get it instead of you, but that doesn't mean you shouldn't make the discounted offer if you think you want to...especially if you need the discount to make this a good deal. You base your offer on whether or no that offer will get the property, you make offers based on getting the deal. If you have to increase your offer to get the property, but then the deal isn't good, you don't want the property...you only want deals.
114 Replies
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes3y
Well the main question is....is he right in his assessment of the given situation as to what to offer, or is he wrong?
District Invest Group546 Reviews - Member since 2020 · 60 posts · 32 votes3y
Hi @Russell Brazil, thank you for your prompt reply. Below is my most current example ( from today):
There's a listing that has been on the market for 127 days. It's listed for $370k, and based on my numbers (PITI plus Variable expenses and some little renovation) I wanted to write an offer for 340k to see if theyre willing to counteroffer. They initially came out with a really overpriced listing at around $450k back in july, and they have been decreasing the price consistenly until The end of December where it landed at where is at right now. The seller has to be motivated in some sort to make these drastic changes, that's my guess. After talking to my agent I decided to write a $355k with full closing assistance and even then that number didnt seem to work. I told him i just want to enter in the negotiation game but he makes it seem that I am trying to fool the seller.
This is not the only offer where this has happened , just my latest one.
- 3yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Let me see if I have the facts right here:
1 - You are making an offer for under the asking price
2 - Your agent doesn't want to make the offer
3 - If the offer were made, it could be accepted and you would get a property at a discount.
4 - If the offer were made, it could be turned down with a counter offer from the seller, or....you could make another offer higher than the firstI'm leaning towards dumping your agent. Your agent is supposed to be working for you, not against you. They can recommend you make a higher offer if they think someone else will, and they would get it instead of you, but that doesn't mean you shouldn't make the discounted offer if you think you want to...especially if you need the discount to make this a good deal. You base your offer on whether or no that offer will get the property, you make offers based on getting the deal. If you have to increase your offer to get the property, but then the deal isn't good, you don't want the property...you only want deals.
- Member since 2020 · 60 posts · 32 votes3y
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Joe Villeneuve:
Let me see if I have the facts right here:
1 - You are making an offer for under the asking price
2 - Your agent doesn't want to make the offer
3 - If the offer were made, it could be accepted and you would get a property at a discount.
4 - If the offer were made, it could be turned down with a counter offer from the seller, or....you could make another offer higher than the firstI'm leaning towards dumping your agent. Your agent is supposed to be working for you, not against you. They can recommend you make a higher offer if they think someone else will, and they would get it instead of you, but that doesn't mean you shouldn't make the discounted offer if you think you want to...especially if you need the discount to make this a good deal. You base your offer on whether or no that offer will get the property, you make offers based on getting the deal. If you have to increase your offer to get the property, but then the deal isn't good, you don't want the property...you only want deals.
@Joe Villeneuve appreciate your feedback.That's exaclty the same way I look at it. Like i told him today, " If I want to pay for listing price I will just jump on the listing that has been on the market for 7 hours". There's a reason why i target property that have been listed for a longer period of time.
On the other side he's a really knowledgeable person. But I feel that I am stuck with a home buyer agent rather than a investment property agent.
- Developer · Houston TX · Member since 2018 · 423 posts · 400 votes3y
Sounds like your agent is worried about becoming known as that agent that submits lowball offers. However, in this market in which we have no idea where the economy will be in 6 months, you need to find an agent that understands your strategy of coming in lower to offset potential correction. Agents are not all created the same. Find one who is hungry and will put in offer that you want to make. The worst thing a seller can say is no. However, if your agent advises from a knowledge point of view and understands investment then it's worth listening to them. But most agents are not investors.
If numbers don't work don't waste your time. If listings are on the market for over 100 days and they barely dropped prices then that is not a motivated seller.
I would look at new construction and see if you can find a builder that is willing to pay closing costs, buy-down rate, etc. Sellers of existing homes who have owed prior to 2021 are normally sitting in a good position so they are not in as much of a hurry to let go of their home.
Another option is to look at listings that had a price cut but the property has been on the market for a short period of time.
Best of luck
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Have an honest talk with your agent and tell them that you are not willing to offer list price. If they aren't comfortable with that, then that's fine, but you will work with another agent.
- 3yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesWhat do you mean stuck?
Quote from @Frank A Castro:
Quote from @Joe Villeneuve:
Let me see if I have the facts right here:
1 - You are making an offer for under the asking price
2 - Your agent doesn't want to make the offer
3 - If the offer were made, it could be accepted and you would get a property at a discount.
4 - If the offer were made, it could be turned down with a counter offer from the seller, or....you could make another offer higher than the firstI'm leaning towards dumping your agent. Your agent is supposed to be working for you, not against you. They can recommend you make a higher offer if they think someone else will, and they would get it instead of you, but that doesn't mean you shouldn't make the discounted offer if you think you want to...especially if you need the discount to make this a good deal. You base your offer on whether or no that offer will get the property, you make offers based on getting the deal. If you have to increase your offer to get the property, but then the deal isn't good, you don't want the property...you only want deals.
@Joe Villeneuve appreciate your feedback.That's exaclty the same way I look at it. Like i told him today, " If I want to pay for listing price I will just jump on the listing that has been on the market for 7 hours". There's a reason why i target property that have been listed for a longer period of time.
On the other side he's a really knowledgeable person. But I feel that I am stuck with a home buyer agent rather than a investment property agent.
- Investor · Houston · Member since 2022 · 80 posts · 44 votes3y
Consider doing a little more work and find off market properties on your own. No realtor, just you and Mr. Motivated homeowner.
Some realtors don't like the low ball offers because a) it takes time to put together the offer and that time would be wasted b) they make more money at list. <== It's almost a conflict of interest.
- Chicago, IL · Member since 2020 · 184 posts · 182 votes3y
Real estate car salesmen, err I mean agents, have a fiduciary duty to save you money.
But they dont care and most bring nothing to the table. I would fire that car salesman and approach the sellers agent myself.
- Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes3y
These are not lowball offers! Anything within 10% of list is reasonable, especially in this market.
Dump your agent. He is not working in your best interest.
As an investor/broker, it really doesn't matter if your agent is an "investor agent." That's more branding than substance, unless your agent is bringing you off-market deals.
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Luciano A.:
Sounds like your agent is worried about becoming known as that agent that submits lowball offers. However, in this market in which we have no idea where the economy will be in 6 months, you need to find an agent that understands your strategy of coming in lower to offset potential correction. Agents are not all created the same. Find one who is hungry and will put in offer that you want to make. The worst thing a seller can say is no. However, if your agent advises from a knowledge point of view and understands investment then it's worth listening to them. But most agents are not investors.
If numbers don't work don't waste your time. If listings are on the market for over 100 days and they barely dropped prices then that is not a motivated seller.
I would look at new construction and see if you can find a builder that is willing to pay closing costs, buy-down rate, etc. Sellers of existing homes who have owed prior to 2021 are normally sitting in a good position so they are not in as much of a hurry to let go of their home.
Another option is to look at listings that had a price cut but the property has been on the market for a short period of time.
Best of luck
@Luciano A. Thank you very much. I really appreciate this input.
- Investor · Cottage Grove, MN · Member since 2016 · 24 posts · 11 votes3y
Quote from @Luciano A.:
f numbers don't work don't waste your time. If listings are on the market for over 100 days and they barely dropped prices then that is not a motivated seller.
I would look at new construction and see if you can find a builder that is willing to pay closing costs, buy-down rate, etc. Sellers of existing homes who have owed prior to 2021 are normally sitting in a good position so they are not in as much of a hurry to let go of their home.
That's a reasonable take regarding the lack of used home inventory keeping prices elevated and I agree. I do have a hard time visualizing a case though where the new construction numbers work in a market where the used home numbers don't even when factoring in builder incentives (unless they were massive). Can you expand on that?
I think anyone would prefer new construction but when I look at the numbers here in my market you're right around break even on a monthly basis or actually loosing a couple hundred $/month. If I have to tie up 20-25% in a down payment how do I see a return on that aside from banking on appreciation and tax deductions or is it different somewhere else?
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Theresa Harris:
Have an honest talk with your agent and tell them that you are not willing to offer list price. If they aren't comfortable with that, then that's fine, but you will work with another agent.
I had this conversation with him already, he's just reluctant to cope with it.
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Joe Villeneuve:
What do you mean stuck?Quote from @Frank A Castro:
Quote from @Joe Villeneuve:
Let me see if I have the facts right here:
1 - You are making an offer for under the asking price
2 - Your agent doesn't want to make the offer
3 - If the offer were made, it could be accepted and you would get a property at a discount.
4 - If the offer were made, it could be turned down with a counter offer from the seller, or....you could make another offer higher than the firstI'm leaning towards dumping your agent. Your agent is supposed to be working for you, not against you. They can recommend you make a higher offer if they think someone else will, and they would get it instead of you, but that doesn't mean you shouldn't make the discounted offer if you think you want to...especially if you need the discount to make this a good deal. You base your offer on whether or no that offer will get the property, you make offers based on getting the deal. If you have to increase your offer to get the property, but then the deal isn't good, you don't want the property...you only want deals.
@Joe Villeneuve appreciate your feedback.That's exaclty the same way I look at it. Like i told him today, " If I want to pay for listing price I will just jump on the listing that has been on the market for 7 hours". There's a reason why i target property that have been listed for a longer period of time.
On the other side he's a really knowledgeable person. But I feel that I am stuck with a home buyer agent rather than a investment property agent.
I didn't mean it in a literal way. I will have to let him go.
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Joehn B.:
Consider doing a little more work and find off market properties on your own. No realtor, just you and Mr. Motivated homeowner.
Some realtors don't like the low ball offers because a) it takes time to put together the offer and that time would be wasted b) they make more money at list. <== It's almost a conflict of interest.
I will put more emphasis on this type of deal finder. Thank you.
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Danny Polanski:
Real estate car salesmen, err I mean agents, have a fiduciary duty to save you money.
But they dont care and most bring nothing to the table. I would fire that car salesman and approach the sellers agent myself.
That definitely sounds like a great option. Thank you.
- Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes3y
There's a ton of real estate agents out there. Some newly licensed ones may be happy to write offers just to get the experience and be active. I certainly wouldn't continue a relationship with a realtor that wouldn't submit your offers as long as they're not stupid low. I've told realtors we work with that if we're making a low offer they can run it by the listing agent verbally and then we'll put it on paper if they think it's a possibility. One thing you're doing differently than us is you intend to open a negotiation for a purchase and our offers are a one time deal. ie, we have one offer we make, no contingencies, no inspections, just an all cash offer and it's a "take it or leave it."
- Member since 2020 · 60 posts · 32 votes3yI agree. I've been stuck doing deals analysis all the time. All the listings that we check out are listings that I find, not my agent, and I am only bringing to him the ones that make sense on my numbers, neither to waste his time nor mine, and then every time when I am ready to write the offer he explains to me how is not a good idea because It will be ignored or it won't be accepted, which is fine by me, because I am looking more for a negotiation. I wish he was presenting me deals opportunities but it's me doing the homework before hand.
Quote from @Loren Clive:
These are not lowball offers! Anything within 10% of list is reasonable, especially in this market.
Dump your agent. He is not working in your best interest.
As an investor/broker, it really doesn't matter if your agent is an "investor agent." That's more branding than substance, unless your agent is bringing you off-market deals.
- Member since 2020 · 60 posts · 32 votes3yThank you for the input. The reason I mention de negotiation is because if I see response from the seller I see opportunity to interact and find an agreement. However, if I get ignored, I will come back with the same offer 3 weeks later, not higher.
Quote from @John Teachout:
There's a ton of real estate agents out there. Some newly licensed ones may be happy to write offers just to get the experience and be active. I certainly wouldn't continue a relationship with a realtor that wouldn't submit your offers as long as they're not stupid low. I've told realtors we work with that if we're making a low offer they can run it by the listing agent verbally and then we'll put it on paper if they think it's a possibility. One thing you're doing differently than us is you intend to open a negotiation for a purchase and our offers are a one time deal. ie, we have one offer we make, no contingencies, no inspections, just an all cash offer and it's a "take it or leave it."
I will be on that level that I can submit an all cash offer, just not there yet :) . Leverage is my biggest ally. - Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Get a new agent.
- 3yRyan KellyBusiness MemberReal Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
@Frank A Castro talk to some additional agents. Not everyone is a good fit for your strategy. An experienced investor agent would not have an issue helping you submit lower offers IF that is an appropriate strategy for the market.
Ryan Kelly Group - Keller Williams5110 Reviews - 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Quote from @Frank A Castro:
Quote from @Theresa Harris:
Have an honest talk with your agent and tell them that you are not willing to offer list price. If they aren't comfortable with that, then that's fine, but you will work with another agent.
I had this conversation with him already, he's just reluctant to cope with it.
If you've had the conversation and he is reluctant, then follow through and find another realtor.
- Developer · Houston TX · Member since 2018 · 423 posts · 400 votes3y
Not all new builds would work just like not all SFRs would make good investments. Some builders are offering incentives that could save you money, such as buy-down programs and warranties on certain new homes—which may not be the case with older properties. For new builds, you wouldn't have to worry about major CapX repairs, especially with the 2-10 warranties builders give. And because rents tend to be higher and they rent faster—you'll also see lower vacancy rates. In my area, some new homes are being sold at a lower cost per square foot than older homes in the same neighborhood.
However, I have advised many newer investors that not all markets make sense to invest in. As a builder myself with an edge, I can see people buying duplexes for $500k and ask myself: What is their play? Some people buy properties not necessarily for cash flow. Not everyone buys for appreciation. Some people buy to preserve capital for the long term, while others use cost seg depreciation to offset W2 income if their partner is a stay home parent. Investing in long-term rental properties with the goal of earning a double-digit return can be done—but it requires patience and diligence. You have to look at many deals before one works out for you.
Warren Buffet's quotation about being greedy when others are fearful doesn't always hold true, because sometimes you should just sit tight and wait. And work on improving your investment strategy—it's better to pivot than make bad moves out of panic or greed. People in high-priced markets are making their rental numbers work by relying on Airbnb. Perhaps there is another way you can make your numbers look good—midterm rentals or rent by the room, for example.
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