Why do realtors hate putting in lowballs for you?

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Why do realtors hate putting in lowballs for you?

Nick Zito
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
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.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Billy Thurston:

    @Russell Brazil

    Is submitting an offer really $500 worth of work? How long does it take to write up an offer and send an email?

     Writing an offer, making the calls, sending the email, getting signatures, and looking at the the comps....all in its about 90 minutes...so yes, its about $500 in work.

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  • Account Closed
    Roswell, GA · Member since 2017 · 26 posts · 10 votes
    6y

    @Nick Zito find a property manager who manages investment properties in the area tell them they can manage it if you get it under contract and buy it. They should not be afraid to make a lowball offer since they probably did that in the past to

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  • Billy Thurston
    Swanton, VT · Member since 2019 · 17 posts · 5 votes
    6y

    @Russell Brazil

    Wouldn’t making call, getting comps, only be done after the offer is excepted?

    Here in VT comps are done by paid appraisers, not agents. And only once under contract.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Billy Thurston:

    @Russell Brazil

    Wouldn’t making call, getting comps, only be done after the offer is excepted?

    Here in VT comps are done by paid appraisers, not agents. And only once under contract.

    I think you have a misunderstanding of the process.

    Ive got 2 phone calls to make on every offer. 1 w the client, 1 w the agent. Thats 15 to 20 mins on each call. Appraisers have no part in the process of making an offer. I need to look at data to know what Im talking about when Im making an offer.  Then Ive got a 50-100 page contract thats got to be put together depending on the specifics of the property.

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  • Farzan Setayesh
    Rental Property Investor · San Diego, CA · Member since 2017 · 86 posts · 14 votes
    6y

    @Russell Brazil

    Love love love it... well said.

    1Reply
  • Courtney Thanphachanh
    Specialist · Yukon, OK · Member since 2016 · 12 posts · 5 votes
    6y

    @Nick Zito does your buying agent not agree with presenting the sellers with a low ball offer or is the property listed and you are in communication with the Sellers Listing Realtor?

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  • Jedd Lucas
    Rental Property Investor · PA · Member since 2019 · 5 posts · 6 votes
    6y

    @Doug Pretorius

    Awesome, thanks for the answer, Doug! The biggest hangup for me was the lawyer/title agent part. Now I can do more research. Thanks again!

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    @Nick Zito There are times when a low ball offer makes a lot of sense and times where it doesn't. Very much a case by case situation. The key is to find an agent who you trust and who knows the difference between the two. In the end I always advise my client to offer where the numbers make sense for them and go from there. 

    I do not mind submitting any offer, but I also set my clients expectations as to what the sellers reaction might be to their offer and the range of outcomes that could happen as a result. If my clients are ok with the potential outcomes, lets do it. In the right situation, circumstance, and market a low ball offer can make sense.

    My clients have gotten at least 3 properties under contract this year that I know of because we were the only people "who would put an offer in writing". Agents and buyers are to sensitive to the fact that they may be insulting the sellers with an offer from my experience. 

    1Reply
  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    6y
    Originally posted by @Billy Thurston:

    @Joe Funari

    How do you get POF before getting an excepted offer on investment? My bank wants all the #'s before running an approval (portfolio lender).

    If your portfolio lender won't give you a generic POF letter with a purchase amount your approved for then find a new hard money lender (HML). There are many out there wanting your business that will be happy to give you the letter you need. You need a generic one so that your Realtor can submit mutliple offers on your behalf without having to go and add the address and change the purchase price on the letter every single time. This goes back to my previous point of finding a Realtor that is investor friendly. They will definitely recommend HML's that will get you this generic POF lender.

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  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    6y

    @Michael Noto

    "My clients have gotten at least 3 properties under contract this year that I know of because we were the only people "who would put an offer in writing"."

    100% agree. People who say "The agent should call a verbal offer in" are off base IMHO. An offer in writing is the difference between someone holding $50 cash and handing it over for a $75 comic book and someone saying "Would you take $50 for it, if I go get the cash from the ATM? I can be back in an hour and 10 minutes". Same with RE, "here is a real offer on paper lets close" VS "what if I offered?"  A real offer takes some time, a well prepared and easy on the seller takes more time. In reality the seller "most always" wants easy and done. 

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