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
- Member since 2020 · 60 posts · 32 votes3y
Quote from @Hamed Rahimi:
The current decision depends on how you got here:
-How did you select your agent? Was it a referral? Did you research about his experience?
-Do you trust his knowledge and analysis? Do you trust that the offer he is suggesting is aligned with your investment goals?
-How do you get to your number? Did you do the due diligence to get to your number?
-At the end of the day, if you send an offer with your price and it will get rejected, you can submit an offer with your agent price and see how it goes?
-One thing that sometimes agents forget, is that at the end of the day, they have to act in the best interest of their clients and do what clients want (as long as it is not against the law).
Q: How did you select your agent? Was it a referral? Did you research about his experience?
A: I was checking a listing out and he was there, we engaged in what it became and interview and I decided I wanted to work with him. I did not research about his experience, however he seemed pretty knowledgeable.Q: How do you get to your number? Did you do the due diligence to get to your number?
A: I base my numbers on data that I pull from available websites ( BP, redfin, etc. ). I do numbers before I check a property to see if it is worth pursuing.
Q:At the end of the day, if you send an offer with your price and it will get rejected, you can submit an offer with your agent price and see how it goes?
A: If I submit an offer and the seller doesn't even bother to reply I move onto finding another deal opportunity. I don't even bother trying to find the price they want. In my opinion that makes me look weaker as a buyer. However, if they are willing to negotiate and come at me with a counteroffer then is game on.I haven't been able to get to this point because my agent wants me to submit the winning offer and the winning offer is not necessarily the winning deal.
- 3yJared HottleBusiness MemberReal Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
I suppose it depends on how much of a discount. If we are talking 5%or less I think that is a problem. If you are looking for big discounts I would say, always remember agents are paid a commission on the purchase price at closing and are not paid for any other activity. So those that refuse to pull the trigger or are low-ball offer types will be the first they will drop as their business grows or they get busy. This is not saying you cannot continue using your strategy but I would have an open conversation with them on what you are going to be doing for the foreseeable future and ask them if they think they are a good fit. As an investor using this strategy I would be ready to only have inexperienced or new agents take my calls so you will need to educate yourself on the process and work a bit harder than you would if you had a rockstar agent. Again to each their own. There are many benefits to working with a top-producer but significant discounted offers is not one of them.
Jared Hottle Real Estate59 Reviews - Real Estate Professional · Ashburn, VA · Member since 2014 · 29 posts · 15 votes3y
You may consider becoming your agent. I did. I'm glad I did. This makes you competitive with your speed to execute. You can make as many offers as you like. Bonus, you can make money by listing or selling to your friends and family.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
When it comes to real estate transactions, it's important to be honest with your agent and make sure that you're both on the same page. If you don't feel comfortable listing a property at list price, let your agent know. Be clear about what you're willing to offer and if they don't agree then find another agent who is open to working with you on your terms. Communication is key in any successful transaction!
- Member since 2022 · 2 posts · 1 vote3y
I'm not sure why you would want to show loyalty to your agent. They are only here to make money. They will not be there to help you financially. They are there to help make a deal easier but they usually do not know about repair cost, rental estimates, BRRR, ...etc.
They will not know about zoning , and getting a property zoned for commerical or multifamily. I use to be a realtor. They usually have a website where they ask questions just like Bigger pockets and most questions go unanswered. Don't depend on them. Stick to your guns.
- Real Estate Agent · Bradenton, FL · Member since 2019 · 21 posts · 6 votes3y
@Frank A Castro Congrats on looking for your next investment that's awesome!
I see hear this a lot with other agents unfortunately. The question Is... the agent you are currently working with, is he an investor himself or does he works with other investor clients? Really the question is does he understand what the numbers look like on your end? What the numbers on both ends ? The numbers you need to make in order to receive the ROI worth the investment. Also the numbers on his end, the realistic numbers on the comps of the area to find the most realistic price to start the negotiation. If you really like the agent maybe you can teach him and get him to watch/ listen to some BP podcasts. He may become your best advocate after that. Either way he needs to get on the same page as you or more on. Good Luck!!
- Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes3y
Perhaps he's looking at a CMA that is showing him a story that causes him to believe list price is still waranted, but if it's sitting over 40days - I'm not sure I understand his debate. I'm sure he's thinking "we are going in w/a low ball offer and a VA loan...not a great look." Just tell him you know we won't be making any best friends through these offers, but as long as you are basing your offers on a CMA, your ideal affordability price point, and DOM, this isn't a popularity contest. You could always suggest to him that he verbally run a low ball (if he feels it's just way below a point of reason) by the listing agent to see if it's worth writing up.
- Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes3y
@Frank A Castro- thanks for clarification ...in this case I would seroiusly consider looking for a new real estate agent that is more on the same line of thinking as you are . Sounds like the present agent might be minimizing the work he / she needs to do to get to a commission
- 3yPatti RobertsonBusiness MemberProperty Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
Looking at Virginia Beach MLS stats for 4/2s that have closed in the last 30 days, the averages sales price to list price ratio is 99% - meaning on average properties are closing at 1% below list price, and the average days on market is 35 days. Our inventory is still really low and while volume has been down because of the time of year, we have turned the corner and have lots of activity now. We are back to the days of multiple offers. I wouldn't be a buyer's agent for any amount of money personally. Everyone wants to get a deal. I would guess about 10% of our agents are also real estate investors. Overall all investor competition is higher than ever. I don't know all the details, but I would say your agent is probably telling you to be realistic if you REALLY want to buy something.
- Realtor · St Louis, MO · Member since 2021 · 33 posts · 15 votes3y
Quote from @Frank A Castro:
Quote from @Hamed Rahimi:
The current decision depends on how you got here:
-How did you select your agent? Was it a referral? Did you research about his experience?
-Do you trust his knowledge and analysis? Do you trust that the offer he is suggesting is aligned with your investment goals?
-How do you get to your number? Did you do the due diligence to get to your number?
-At the end of the day, if you send an offer with your price and it will get rejected, you can submit an offer with your agent price and see how it goes?
-One thing that sometimes agents forget, is that at the end of the day, they have to act in the best interest of their clients and do what clients want (as long as it is not against the law).
Q: How did you select your agent? Was it a referral? Did you research about his experience?
A: I was checking a listing out and he was there, we engaged in what it became and interview and I decided I wanted to work with him. I did not research about his experience, however he seemed pretty knowledgeable.Q: How do you get to your number? Did you do the due diligence to get to your number?
A: I base my numbers on data that I pull from available websites ( BP, redfin, etc. ). I do numbers before I check a property to see if it is worth pursuing.
Q:At the end of the day, if you send an offer with your price and it will get rejected, you can submit an offer with your agent price and see how it goes?
A: If I submit an offer and the seller doesn't even bother to reply I move onto finding another deal opportunity. I don't even bother trying to find the price they want. In my opinion that makes me look weaker as a buyer. However, if they are willing to negotiate and come at me with a counteroffer then is game on.I haven't been able to get to this point because my agent wants me to submit the winning offer and the winning offer is not necessarily the winning deal.
Q: How did you select your agent? Was it a referral? Did you research about his experience?
A: Right now, I am a realtor myself. When I was buying my first home a few years ago, I found two realtors based on referral. Interviewed them and choose one. I was lucky and made a great choice. The realtor that I choose was a guy that I made a favor for his son a few years ago. After buying the house, he became my mentor. Guide me to get my real estate agent license and right now, he is my broker.Q: How do you get to your number? Did you do the due diligence to get to your number?
Websites like BP, Zillow, Redfins are great starting points vut you need to go further and do a more detailed due diligence. Ex. If the owner has updated the kitchen and bathroom in the past 6month, these websites do not take that into the consideration. The updates may add $20k-$30k to the house price. Make sure that your analyses are accurate and you get a number (highest price) that you can pay for the house and still make it a good investment for you. Never go higher that number.
Q:At the end of the day, if you send an offer with your price and it will get rejected, you can submit an offer with your agent price and see how it goes?
A: As a realtor, every time I submit an offer, I am in contact with the listing agent and ask how the seller feels about the offer. If rejected, I call the listing agent and ask for feedback. This helps me to draft the second offer better. If your first offer is always being accepted, it means you are offering too much.It may be ok to pay ~$10k-$20k higher for somebody that is buying a house to live in it for 5-10 years but as an investment, every dollar counts.
I would be happy to help you in your real estate journey with any questions you may have. - Member since 2022 · 17 posts · 4 votes3y
It can be frustrating for an agent to spend time writing and making many offers that will all be rejected.
That being said, has your agent run comps? Does the seller already have other offers? Has the seller already rejected an offer for that price recently?Has your realtor had a conversation with the other agent to find out if the buyer would accept or counter? I've seen a lot of times you can talk out the details then submit the offer so that not as much time and effort is wasted. Also you can show them your numbers and ask them how they arrived at theirs.
- 3yTim JacobPro MemberReal Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
There is some give and take that people should consider. Most listing agents can give a yes or no on a verbal and thus the agent should always check that option if you are low balling. If you are low balling and they are spending days and days writing offers only to be rejected because you are asking a ridiculous amount off then you are wasting there time. Maybe they can come up with a strategy like only do this if a property has been listed at a price point for more than a month and then don't go over 10 or 15%. They should make sure you will pay them a minimum commission regardless of the list price so you are not wasting their time. Marginalizing the help for your own gain usually winds up having more negative consequence for your bottom line than any gain. At the same time they could be really lazy if they don't want to even give a verbal for something not too low or write an offer under list price at all. Its hard to judge this situation.
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