Little background: I am a newly licensed agent. I haven't had a transaction yet. I have a couple buyers clients who aren't really motivated, and no listings yet. Needless to say - I DONT KNOW THE ROPES! Hahaha.
My husband and I are looking to pick up our first investment property with cash. We viewed a property listed on MLS yesterday that I'd be very interested in - but for the right price. I filled out the feedback form and the selling agent promptly emailed back "Make an offer" (which is just something he does I guess. we've viewed a few of his properties now and he always emails back within an hour the same thing)
What is the protocol here for opening up lines of communication? Can I respond to his "Make an offer" email with "How much will the bank accept?"
I just don't know how to be a real estate agent yet :(
I am a relatively new agent as well and have found that some agents aren't as conversational as others. I've even dealt with one who would only text! Oh my. On the feedback form, I would keep your feedback short, very concise, and sweet and end your feedback with the statement "writing an offer, expect within 2-3 hours". This way, you are setting the expectation that you are serious. Then, with the offer, include a cover letter that goes into more detail about how you arrived at your offer. Always open your letter with how great the house is, what you like about it, the amount of potential it has and why your offer should be the one accepted. And remember, it's a numbers game, even when you are an agent. Hope this helps!
Is this a short sale, or an REO. In either case the agent won't know, unless it's a short sale with a deal that just fell apart, and they have a counter from the bank, which may or may not be valid by the time your contract is processed. With a private seller you can ask the "where do you think we need to be" question, for whatever that reinserted may be worth. If a short sale, more details may be needed. If there are additional mortgages/liens behind the first mtg that maybe the first won't contribute enough to make them sign off, the buyer would need toons up some extra money to satisfy them. This of course would affect your offer price, so you'd need to know this going in. But, typically just send the written offer and go from there.
@Wayne Brooks gives good advice. I'd also recommend trying to call the agent, getting chatty and seeing what they may communicate. Typically an REO agent won't know what the lowest the bank will accept, but if they have been doing this for years, they may have good feel about what the asset managers are thinking and what they have done in the past.
Call the agent, ask them if they have had other offers, and tell them what you have in mind for price to get their feedback. Also, make sure they know you are the purchaser, because some reo banks refuse to pay commission to Agents if they are the purchaser. You want to know if this is the case because you might be smart to use another agent and collect a referral fee.
For one, don't make your feedback sound like you're ready to write an offer, otherwise the agents will hound you.
Two, "how much will they take" is a bad question. Even if the sellers/bank/whoever told the agent they'd take $300,000 doesn't mean that's what they'll take. Plus, it's not in the best interest of the sellers to disclose what they'll take. Maybe the buyer would offer more if they didn't know what the price was.
We've had it plenty of times where a seller would say they'd take X amount (which we never, EVER disclose) and then get a offer a little higher and the sellers tell us they aren't going to give their house away. Blah!
Also, if you don't have any business yet, and if you have the time, just write the offer and send it along. If anything, you'll at least be proficient in writing offers when you get a buyer. :-)
try to feel them out but the agent most likely won't tell you the bottom price. Or they may lie and tell you the bottom price which may be higher then the bottom price.
Also as said above, the bottom price has a tendency to change both up & down.
thank you all for your valuable insight! :) i am going to have my mentor help me put in an offer tomorrow and maybe I'll call the agent on the way and see if I can get a clue...
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