Why do realtors hate putting in lowballs for you?

Flipper/Rehabber · WA · Member since 2019 · 5 posts · 10 votes

I’m not saying all, but the majority scoff at the idea of putting in a lowball for you. Does it give them a bad rap or something I’m not aware of since I’m not an agent? I agree in some markets it’s not appropriate but I’m looking at a property that’s been listed for 6 months, needs allot of TLC, it’s the owners investment property also, and vacant. Why the heck not? My math only works at 60k less than asking price but I can’t find an agent that doesn’t think I’m being “rude.” What don’t I know??

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Here is a question.....are you willing to pay someone for the time it takes them to write up the offer and put it in? Whenever someone asks me to write up a lowball that I know has no chance of going anywhere, I tell them its $500. Funny that no one takes me up on that. I guess they know its $500 essentially flushed down the toilet. They dont mind asking someone else to waste their time, but they dont want to put their own money or time up to accomplish their goal.

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Leah Stuever
Realtor · Dallas, TX · Member since 2019 · 194 posts · 164 votes
6y
Because they know that it is a lot of work for zero pay. It is highly unlikely the offer will be excepted if it is obviously too low and wont be excepted. If you want to put in an obnoxiously low offer, you need to back it up with data. You are offering this amount because it will cost x y and z to get it up to snuff.
35 Reply
Joe FunariBusiness Member
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
6y
@Nick Zito @Leah Stuever was spot on backing up offers with data to justify your low offer. But also if your having issues with my fellow Realtors struggling with the idea of preparing low offers on your behalf then they are not a good fit for you. Reasons may be they don't understand REI or afraid of rejection. I am more than happy to prepare multiple offers for an investor client. I always tell my clients "You can't win unless you play." In short, how will you know if your offer won't get accepted unless you actually present an offer. In fact, only this morning I submitted an offer for a client that was 50% of ARV on a property. Who knows if it will get accepted. The seller could flat out reject it. They could counter with a slightly higher number. Or in a perfect world accept my clients "low ball" offer. My point is if your realtor is resisting putting in an offer then you should look to find a Realtor that is Investor Friendly. Better yet, find one that is a fellow investor and loves to submit a lot of offers on your behalf. Just make sure you have your pre-approval letter or proof of funds letter ready to give to the Realtor. If you haven't done the due diligence on your part and obtained these letters that may be why your current one is resisting helping you. In sellers markets its a must to present one of these financing letters. Sellers will reject offers otherwise. Good luck in your search regardless of exit strategy. But keep putting in offers.

27 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
6y
If a property has obvious HIGH DOLLAR problems making an offer like that doesn't offend me. Provide some rehab quotes to justify the offer. My Dad always told me there's a sucker born everyday. Don't be the sucker.

If they don't want to put in offers and get paid find another agent. I offered 30-35% < asking on 3 properties before finding the right deal. My agent was helpful the whole time.
7 Reply
Parker Eberhard
Contractor · Seattle, WA · Member since 2019 · 339 posts · 325 votes
6y
@Nick Zito because an agent doesn’t want to get a bad reputation amongst his or her peers as the lowball agent. Other agents will not want to keep on doing deals with them. It’s also the reason that buyers should constantly revoke offers; you end up looking like a flake and people will stop wasting time on you and your ‘offers’
8 Reply
Tracy Selfridge
Contractor · Lexington SC · Member since 2019 · 36 posts · 46 votes
6y
Originally posted by @Parker Eberhard:
@Nick Zito because an agent doesn’t want to get a bad reputation amongst his or her peers as the lowball agent. Other agents will not want to keep on doing deals with them. It’s also the reason that buyers should constantly revoke offers; you end up looking like a flake and people will stop wasting time on you and your ‘offers’

I don't know about other markets, but for our market this applies. If an agent is constantly putting in lower offers there will be a bad reputation built.
6 Reply
Frank Procopio
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
6y
Ask them to call in a verbal and feel the other agent out
15 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
6y
@Nick Zito as already mentioned basically two reasons.
1. It takes work to prepare offers. No one wants to do work with a low probability of success
2. They are affraid of developing a bad reputation.
Number one is a legitimate concern. However the response is (presuming it is true and you can back it up) I am going to buy 8-12 properties this year. Would you like to get an extra 8-12 commissions this year for sending out a high number of offers?
Number two is an example of an insecure agent. All agents know it is the legal duty to present a clients offer. A low offer does not at all reflect on an agent. It may reflect on the agent's client, but not the agent. Any agent that doesn't understand that shouldn't be in this business.
If your buyers agent cares what a moron sellers agent thinks, the he or she shouldn't be in the business.
That is just my opinion. I have little tolerance for professional that don't understand or follow their fiduciary duty. It is also based on the indisputable fact that properties are regularly sold at; below market prices, below asking prices and well below what an agent thinks will be accepted.
Having said all of the above that is why I am not an agent. If I was an agent, I would fire you as a client. I don't want to work that hard.
21 Reply
Carl Ohai
Member since 2019 · 40 posts · 2 votes
6y
I know nothing about real estate, but I am learning. Is it possible that one aspect of it is that agents don't want to ruin a rapport with the listing agents?
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y
Here is a question.....are you willing to pay someone for the time it takes them to write up the offer and put it in? Whenever someone asks me to write up a lowball that I know has no chance of going anywhere, I tell them its $500. Funny that no one takes me up on that. I guess they know its $500 essentially flushed down the toilet. They dont mind asking someone else to waste their time, but they dont want to put their own money or time up to accomplish their goal.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
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37 Reply
Tanner Marsey
Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
6y
1. Bad rep.
2. Waste of everyone’s time (generally....)
3 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
It’s a big reason I don’t use realtors .most people want too much and If the offer doesn’t make you blush then it’s too high
10 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
If you can back up your low ball offer with math then they should put the offer in. You are getting multiple rejections to submit your offer and maybe it is way too low. Do you know what the lowest rejected offer was?
On the other hand, you are an investor and investors look for the absolute best deal. Its not a waste of time, why can't your agent call it in? If your agent doesn't want to do it for you then why not go directly to the listing agent. If its a commission split thing, the listing agent will see a bigger cut.
3 Reply
Randall Weatherall
Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
6y
I'll do it occasionally for some clients that I know are low-balling (not 30 cents on the dollar, but maybe 50-60) and can justify and can close 100% if accepted, but it does take time to write up 30 -50 offers, even with the proper, scalable systems in place to ease that pain. I agree with Russell: it's spinning wheels for little to no reason. If someone told me I can crack 100 rocks in half with a hammer but I have to spend 30 minutes cracking each one and one of them may have $500 bucks in it, not a very appealing scenario.
A lot of the way some agents feel about vs. others is also what's the low-ball sales price? Is it $400,000? I'm writing it up right now! Is it $11,000? I have to like you an awful lot for that one.
Lastly, if you're a good client of this Agent's and you've closed a bunch and you only ask for low-ball offers every now and then and they don't do it or complain while doing it, they're bad people lol
2 Reply
Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
We have put a lot in over the years & she never flinches. But she has also made a lot of money from us & visa versa. We often spend summer Friday nights at their Lakehouse for Happy Hour so she sent me a card that had a picture of a Giraffe that said ...
'...the drinks may be on the house BUT the LOWBALLS are on me.."
I assumed it was a dig because of the LOWBALL offer she had to present that won us our Lakehouse ....
3 Reply
Tony Gunter
Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
6y
Just one of the reasons why I got my license. I submit my own offers. By GA law the listing agent is required to present them to the seller. Problem solved.
9 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Would you work for free at your current job? Drive around town for free? Spend your weekends working for free?
Whats the point in writing a low ball offer with 0% chance of getting accepted? I get the argument from the buyer side. Well you never know unless you put the offer in. Now take it from an experience agent's perspective. You are wasting your time and mine.
I have no problem writing a low offer but you better be All Cash 7 day close non-contingent if you are not you are just talk.
To me sending 50 low ball offers and praying and hoping 1 gets accepted is not a viable strategy. Seriously all that time searching, looking, analyzing, missing out on good deals for 1? This is not how it's done.
11 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
Is the ask 880K and you are offering 820K or is the ask 75K and you are offering 15K?
Also how well of a relationship do you and the agent have? If some random person calls me and says "I want you to represent me, to start I want you writing an offer for 32% of asking on 123 Main street". I would give them the number to an agent I didn't like very much who was competing with me to lock him up a bit. Now if a regular calls most likely I'd write it up because the people I work with would have a solid reason for asking and it would be a one off.
6 Reply
Patrick Risko
Milford, CT · Member since 2018 · 5 posts · 6 votes
6y
@Russell Brazil
So I would be curious.
What if the buyer said that they would give you the $500 but if the offer gets accepted you would represent the buyer in the transaction for only the $500?
6 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y
@Patrick Risko
Thats an additional 20 hours of work post contract ratification that needs to be worked at $350 per hour, which is my billable rate. The $500 is for the 1.5 hours of work on the front end.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
9 Reply
Lindel Turner
Investor · Jonesboro, AR · Member since 2017 · 136 posts · 79 votes
6y
@Nick Zito
Find a new agent. A lot of these statements is why I got my own license. They sure as heck won’t tell you it’s to much when you offer full price.
3 Reply
Lindel Turner
Investor · Jonesboro, AR · Member since 2017 · 136 posts · 79 votes
6y
@Nick Zito
Wait till they don’t even present the offer because they rather wait for their own buyer to get both sides of the commission. You will learn real quick. Don’t waste your time on an arrogant agent that don’t like to present offers.
1 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
6y
Originally posted by @Frank Wong:
Would you work for free at your current job? Drive around town for free? Spend your weekends working for free?
Whats the point in writing a low ball offer with 0% chance of getting accepted? I get the argument from the buyer side. Well you never know unless you put the offer in. Now take it from an experience agent's perspective. You are wasting your time and mine.
I have no problem writing a low offer but you better be All Cash 7 day close non-contingent if you are not you are just talk.
To me sending 50 low ball offers and praying and hoping 1 gets accepted is not a viable strategy. Seriously all that time searching, looking, analyzing, missing out on good deals for 1? This is not how it's done.
@Frank Wong - "Would you work for free at your current job? Drive around town for free? Spend your weekends working for free?"
I truly understand what its like to work and not get paid but that happens in commission sales work. Sometimes its feast and sometimes its famine. Let me ask you this - Is it right that a buyers agent is avoiding to show a qualified buyer a house on the MLS because the commission is too low?

2 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
6y
Originally posted by @Anthony Rosa:
Originally posted by @Frank Wong:
Would you work for free at your current job? Drive around town for free? Spend your weekends working for free?
Whats the point in writing a low ball offer with 0% chance of getting accepted? I get the argument from the buyer side. Well you never know unless you put the offer in. Now take it from an experience agent's perspective. You are wasting your time and mine.
I have no problem writing a low offer but you better be All Cash 7 day close non-contingent if you are not you are just talk.
To me sending 50 low ball offers and praying and hoping 1 gets accepted is not a viable strategy. Seriously all that time searching, looking, analyzing, missing out on good deals for 1? This is not how it's done.
@Frank Wong - "Would you work for free at your current job? Drive around town for free? Spend your weekends working for free?"
I truly understand what its like to work and not get paid but that happens in commission sales work. Sometimes its feast and sometimes its famine. Let me ask you this - Is it right that a buyers agent is avoiding to show a qualified buyer a house on the MLS because the commission is too low?

Hi Anthony,
Should the agent show the buyer? Yeah I think so but the agent also have specific rights on how they value their time. If their time is worth more than showing a low price home why would they do that? Reason why some agents charge full commission and why some agents are discount brokers. If your skill level and value that you bring is worth more then you have to manage your time efficiently. Only so many hours and available time to work.
Agents avoid taking buyers and listings all the time because the commission is too low. This is nothing new. If someones avg per hour is $600 why would they do something at $150. No it's not free money. It's time committed and taken away from other things that they can do.
If the buyer's agent is avoiding meaning dodging his clients and giving them the run around. No thats terrible. Just tell your clients up front I don't work in that price range let me find you an agent in my office that does.
For me, I help everyone. If you are a serious buyer regardless of price I will treat you like my #1 client.

5 Reply
Emmett Freedman
Rental Property Investor · Baltimore, MD · Member since 2015 · 12 posts · 3 votes
6y
@Frank Procopio this might be an obvious answer, but can an investor call a realtor and make the offer themselves? Seems like an easy way to avoid hurting the realtor’s reputation. For example, you just call the other agent and say you would offer $60K under listing because the place has been vacant for a year and that’s just where the numbers work for you. They can laugh it off if they want, or they can take it seriously because they know their client may be that desperate.
Are there legal reasons why you can’t do this?
2 Reply
Danielle Wolter
Rental Property Investor · San Diego, CA · Member since 2019 · 290 posts · 253 votes
6y
I have an agent that will make as many lowball (what really is considered lowball??) offers i want. Just over the past couple weeks, she has submitted numerous offers for me that were well below asking price. I know it takes work to write up offers, but I will likely be buying multiple properties with her. In fact, we just got one under contract today. And I made another offer an hour later. She knows I want to buy and seems to be willing to submit offers all day. Obviously, this is from my point of view and I can't speak to what other realtors believe. I say if your agent won't make the offers for you, find one that will, or provide your offer directly to the listing agent and cut the buyers agent out (I would only do this if you're comfortable with real estate transactions).
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