Realtor changed my offer without asking/(thinking?)

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Realtor changed my offer without asking/(thinking?)

Arianne L.
Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes

Sorry, this is more venting than anything else but I'm curious if anyone else has had similar experiences...

Our first realtor wasn't that great, particularly on communication and actually submitting offers (although we are trying to close a 4 unit deal with him right now).

Now, the second realtor we're actually trying to purchase a personal residence with potential profit when we sell in 2+ years. She's been great so far. Prompt communication and is okay with submitting our "low" offers. Until today...

We are trying to get a property listed on homepath. It is listed at 150k. We initially offered 120k. Bank came back at 141k, we countered at 125k. Bank came back at 137k, we countered at 126k. Bank came back at 136k. (I actually thought that was funny).

Yesterday, we advised our realtor that we would like to counter at 129k (our max is 130k). She then tells us after she submitted our offer that she "asked them to contribute $7,000 to repairs costs of "as is" conditions". So, after all this negotiation with the bank, she basically reduced our offer back down to $122k! and without consulting us first! I don't even know what to say...

P.S. I am currently working on getting my own real estate license so I don't have to worry about this anymore. lol

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Geoffrey Hoffman
Real Estate Agent from Cleveland, OH · Cleveland, OH · Member since 2015 · 45 posts · 26 votes
11y

No, a Realtor cannot offer price/terms which you did not tell her to offer.  That is why it is best to negotiate in writing.  

That aside - If your first response is to call her broker, get her in trouble, and take her license away- Why not have a conversation with her first? Are you sure there is not a miscommunication here?  Based on the numbers you stated:

Bank is at 136k

You tell Realtor to offer 129k

She says she asked the bank to contribute 7k to repairs. 

Was the counter at 136k minus 7k towards repairs  (net offer of 129k, as you wanted)?  Or was it 129k with 7k credit (net of 122k).  Did you even ask her?  Is it just a coincidence that the difference was 7k?

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  • Will S.
    Irvine, CA · Member since 2015 · 51 posts · 6 votes
    11y

    I thinK yOu are going to show that no good deed goes unpunished.

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  • Arianne L.
    OP
    Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    11y

    @Mark Gallagher Yes, we clarified in the end that she did submit $129k with 7k allowance for repairs. Thank you for explaining the difference between the allowance for repairs and closing cost assistance. I am a new investor and this is my first homepath negotiation so I will definitely remember that info. Your point in #4 is something I haven't considered before. I know I've read a lot here on BP about how the "cleanest" offers are best for the bank. But it does make sense that they would prefer a higher selling price even if the net to them would be lower. We've been trying to make "clean" offers but now that you explain that we might try to change our strategy on future offers.

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  • Arianne L.
    OP
    Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    11y

    Update on the situation:

    The realtor called back and said that she had discussed what happened with her broker. I think it's great that she initiated the conversation with her broker, as we did not mention that at all. She said that she had misinterpreted the statements on the website and did not think that the allowance for repairs would make an impact on the offer. My husband gave the example @Eric Peterson gave if the offer went the other way (up instead of down) and how that would be a difficult predicament to be in. She seemed to understand and apologized.

    @Will S. The problem we had with our previous realtor was very different from the problems we had with this one. I believe I stated in my first post that everything has been fine until this one incident. Really, there has been no problem with her until this surprise of an offer. She's been prompt with her communication and respectfully submitted our offers in a timely manner. We actually really liked each other, and one time my husband and I spent time with her and her husband after a showing. My husband and hers are in the same industry and we just had a good time talking about life in general. Which is part of the reason why we believed that she had no malicious intent. What do you suggest the communication issue is on my end? 

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  • Mark Gallagher
    Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
    11y
    Originally posted by @Arianne L.:

    @Mark Gallagher Yes, we clarified in the end that she did submit $129k with 7k allowance for repairs. Thank you for explaining the difference between the allowance for repairs and closing cost assistance. I am a new investor and this is my first homepath negotiation so I will definitely remember that info. Your point in #4 is something I haven't considered before. I know I've read a lot here on BP about how the "cleanest" offers are best for the bank. But it does make sense that they would prefer a higher selling price even if the net to them would be lower. We've been trying to make "clean" offers but now that you explain that we might try to change our strategy on future offers.

     She submitted $136 w $7 credit or $129 w $7 credit?

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  • Arianne L.
    OP
    Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    11y

    @Mark Gallagher $129 with $7 credit

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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    @Mark Gallagher  thanks Mark,,, for this reason I only like to do business with top agents.

    I can see where this method would lead to all sorts of issues.. and miscommunications between agent and buyer... 

    I can see were both were thinking one thing and doing another.. As an agent I would want an e mail confirm that the buyer understood last update to the electronic system

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  • Rod Desinord
    Real Estate Agent · Pompano Beach, FL · Member since 2015 · 249 posts · 73 votes
    11y

    wait maybe I am missing something but on a counter offer don't you have to sign the document saying you want to go with that new offer. It sounds like to me she negotiated the terms with the bank and than came back to you for a confirmation on that negotiation.

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  • Stephanie Goodman
    Real Estate Broker · Waterford, MI · Member since 2015 · 67 posts · 23 votes
    11y
    Originally posted by @Rod Desinord:

    wait maybe I am missing something but on a counter offer don't you have to sign the document saying you want to go with that new offer. It sounds like to me she negotiated the terms with the bank and than came back to you for a confirmation on that negotiation.

     No, Fannie Mae has everything online and counters are done verbally. 

    She should have known better than to change it without asking you, if you had gotten the correct offer in sooner it might have never gone to 'highest and best' because your offer would have been accepted before the other ones were submitted.

    I hope everything works out for you, I would definitely find a new realtor after this. 

    2Reply
  • Christopher Leon
    Realtor · Schaumburg, IL · Member since 2011 · 289 posts · 118 votes
    11y

    @Arianne L. although the your agent is unethical for having changed your offer, if you really wanted the asset, why didn't you take the hint when the seller countered from $137k to $136k and just take the deal? It's almost a 10% discount off the original ask. Your agent made a bad call on making your net offer less than the previous offer - hope you can still snag the unit. Good luck

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  • Arianne L.
    OP
    Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    11y

    @Stephanie Goodman Thanks. I did speak with the listing agent and she confirmed that what you said is true. 

    @Christopher Leon Our max price for the asset is $130k. More than that, it wasn't really a "deal" anymore. We'll see what happens. If it goes off the market then we'll know someone else wanted it more. If it doesn't then we'll resubmit an offer in a week.

    Thanks to everyone for contributing to the discussion. As new investors, we've learned several lessons from this experience and look forward to continuously improve.

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  • Mark Gallagher
    Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
    11y

    @Arianne L.

    What was the highest and best deadline? Is your offer in? 

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  • Arianne L.
    OP
    Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    10y

    @Mark Gallagher Yes, we got our offer in. We got notified today that they rejected ours and accepted somebody else's offer yesterday. It still says "Active" on homepath.com though, so maybe it'll be worthwhile resubmitting an offer in a few days.

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  • Micki M.
    Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes
    10y

    My first question, was how did they submit an offer without you reviewing it, but after reading I see it is for a foreclosure.  Systems like HUDhomestore are just an online offer form, they are not a binding contract and have no signatures.  In any instance, your broker should NEVER submit anything you did not agree to or authorize, but for everyone freaking out about them submitting a full contract, that's not the case, so the buyer is not in jeopardy.

    The red flag I see is that she's arguing with you about it.  An apology and a promise to not do that again is the only response, and if I didn't get the deal I'd switch brokers.

    Just an FYI don't expect much from the listing side either.  My worst transactions have been with foreclosure listing brokers. On the last one I received a document from title that had my buyer's signature forged on it by someone in the listing broker's office.  They didn't understand why I was upset either, they had the best of intentions.

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  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    10y
    It takes a few days for it to come off the website. Personally, I would have bid $130,250 , just in case the other offer was 130k. I don't want to loose the property over a small difference of $250.
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