Dear Agents, I'm not worth your time.

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Dear Agents, I'm not worth your time.

Blake Hansen
Handyman · El Cerrito, CA · Member since 2016 · 16 posts · 8 votes

I'm just starting out. Each time I contact an agent and let them know what I'm willing to offer they usually laugh and are quick to discourage the approach. I'm confused. Like most investors I want to make an offer low enough to get the best bang for my buck and I don't care if my offer isn't accepted if it's not a good deal. However, this is a royal pain and waste of time for a real estate agent. I remember in Rich Dad, Poor Dad, Kiyosaki emphasizing making low offers and finding an agent willing to do so. Are there agents out there who will support an investor who low-balls every seller in hopes of finding a great deal? I can't imagine why an agent would do this. Are there investors out there who became agents for the express purpose of being able to write the offers themselves? I'd love to hear your thoughts on this and more. 

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Bill SchrimpfBusiness Member
Real Estate Agent · Reno, NV · Member since 2014 · 349 posts · 189 votes
9y

If your agent uses electronic forms, it's not time consuming to make offers, maybe 10 minutes...

Agents 'know' each other, at least in my market.  If an agent writes lowball offers all day long, it hurts that agent when they have a 'retail' buyer.

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  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    9y
    Originally posted by @Xin Jin:

    I totally agree with @Jon S. that you need to recognize the market you are in.  The core Bay Area market is still a seller's market.  The asking/listing price is the lowball price in most cases.  People who are not familiar with the local retail markets, will have a hard time getting used to this.

    @Blake Hansen, your time is valuable as well. Writing low ball offers is waste of your own time in a sellers market if we are talking about MLS listings. However, if you are talking about properties that are not listed, that is a different game altogether.

    Thanks Xin! I might have to disagree with you though...I think we passed a peak late last year and we're going to be heading into a buyers market. That should be more obvious in 6-9 months...

    0Reply
  • Ralph C.
    Real Estate investor professional · Suwanee, GA · Member since 2016 · 233 posts · 81 votes
    9y
    Originally posted by @Jon Q.:
    Originally posted by @Xin Jin:

    I totally agree with @Jon S. that you need to recognize the market you are in.  The core Bay Area market is still a seller's market.  The asking/listing price is the lowball price in most cases.  People who are not familiar with the local retail markets, will have a hard time getting used to this.

    @Blake Hansen, your time is valuable as well. Writing low ball offers is waste of your own time in a sellers market if we are talking about MLS listings. However, if you are talking about properties that are not listed, that is a different game altogether.

    Thanks Xin! I might have to disagree with you though...I think we passed a peak late last year and we're going to be heading into a buyers market. That should be more obvious in 6-9 months...

     I agree with @jon s.

    1Reply
  • Steve R.
    Investor · MN · Member since 2015 · 72 posts · 37 votes
    9y

    I agree with the folks that said to use the listing agent. That is how I started and it gave me a chance to meet lots of different realtors to see if they were a fit for me. I eventually found one that works well with me and doesn't mind putting in lower offers.            

    0Reply
  • Xin Jin
    Investor · Berkeley, CA · Member since 2016 · 27 posts · 18 votes
    9y
    Originally posted by @Jon Q.:
    Originally posted by @Xin Jin:

    I totally agree with @Jon S. that you need to recognize the market you are in.  The core Bay Area market is still a seller's market.  The asking/listing price is the lowball price in most cases.  People who are not familiar with the local retail markets, will have a hard time getting used to this.

    @Blake Hansen, your time is valuable as well. Writing low ball offers is waste of your own time in a sellers market if we are talking about MLS listings. However, if you are talking about properties that are not listed, that is a different game altogether.

    Thanks Xin! I might have to disagree with you though...I think we passed a peak late last year and we're going to be heading into a buyers market. That should be more obvious in 6-9 months...

     Jon, I hope you are right!  I have not bought anything in a couple of years.  I am seeing price drops in the secondary markets. I am not confident that it will translate into the core markets.  Only time will tell.

    0Reply
  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    9y
    Originally posted by @Xin Jin:
    Originally posted by @Jon Q.:
    Originally posted by @Xin Jin:

    I totally agree with @Jon S. that you need to recognize the market you are in.  The core Bay Area market is still a seller's market.  The asking/listing price is the lowball price in most cases.  People who are not familiar with the local retail markets, will have a hard time getting used to this.

    @Blake Hansen, your time is valuable as well. Writing low ball offers is waste of your own time in a sellers market if we are talking about MLS listings. However, if you are talking about properties that are not listed, that is a different game altogether.

    Thanks Xin! I might have to disagree with you though...I think we passed a peak late last year and we're going to be heading into a buyers market. That should be more obvious in 6-9 months...

     Jon, I hope you are right!  I have not bought anything in a couple of years.  I am seeing price drops in the secondary markets. I am not confident that it will translate into the core markets.  Only time will tell.

    It is already translating into core markets, though you have a number of variables (tech and international buyers, etc.) that will affect pricing.  Look at the number of competing offers per property and the days on market.  Prices are definitely not continuing to rise in the short term.  I know a mortgage company that works with the luxury condo developers who built a few buildings in downtown SF.  They are virtually ALL dropping their pricing to unload these as quickly as possible.

    0Reply
  • Catherine Coy
    Lender · Huntington Beach, CA · Member since 2008 · 154 posts · 30 votes
    9y

    Blake Hansen wrote:  Are there agents out there who will support an investor who low-balls every seller in hopes of finding a great deal? I can't imagine why an agent would do this.

    I can't, either.  I sure don't.  I don't make money by writing offers and driving buyers around in my car.  I make money by getting offers ACCEPTED.  If you want to write lowball offers all day long, get licensed and knock yourself out.

    1Reply
  • Cindy Pinkston
    Real Estate Agent · Sonoma, CA · Member since 2016 · 8 posts · 3 votes
    9y

    I'm a fairly new agent and a newbie to investing.  I can say that most of the realtors I know are not investment savvy.  They don't know the questions to ask to understand the motivations of the investor. Likewise, many investors don't know how to, or don't care to, educate the realtor, like @Brian Garlington describes (love that, btw!).  They speak 2 different languages.  

    0Reply
  • Account Closed
    Redondo Beach, CA · Member since 2016 · 33 posts · 22 votes
    9y

    Good to remember there are more things to consider than only numbers in an offer. Get to know the listing agent and see where you can make your offer attractive to the seller- think terms. If you have further questions about working with an agent feel free to message me.

    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Blake Hansen,

    Admittedly, I only skimmed this thread before chiming in, but I'm not seeing anyone mention this:

    Find an agent who deals with investors and understands the game. Ask at the local REIAs.

    That said, of course,  if you're going to make a low offer, there needs to be some justification. Property condition is usually the big one. If someone asks you to justify your offer, cite the issues with the property and the cost to repair them. Agents representing such properties usually understand that they won't get full-retail offers because of the property's condition.

    0Reply
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