RE Agents: Insulting to lowball offers?

Real Estate Agent
6yFollow

RE Agents: Insulting to lowball offers?

Ben Petersen
Investor · Spanish Fork, UT · Member since 2018 · 2 posts · 5 votes

Hey fantastic RE agents of BiggerPockets!

Earlier today, I was speaking with a friend of mine regarding a few properties that I am looking at. One of the property's is a SFH fixer upper and the owners are "extremely motivated" - it is vacant, they are out of state and just want the property gone. Property needs enough work that the average MLS buyer probably wouldn't be interested. The seller already had one contract fall through.

MLS asking: 200k

ARV: estimated 260k (ish?)

In talking with my friend, I mentioned I might offer 150k or even lower. You know, shoot my shot and maybe I’ll score. My friend was appalled I would do that, citing that my RE agent wouldn’t do that because of a “RE Agent Code” that essentially says that submitting offers lower than 20% would insult the sellers agent and my RE Agent’s reputation would be damaged.

Is it wrong that I want an agent to send lowball offers? In my mind, I would want to send out 20 offers and hope one works out. Am I wrong in that thinking? If my agent won’t send low offers, do I need to get a new one?

Thanks in advance!

4Reply
142 views

Most Popular Reply

Marshall M.
Washington, DC · Member since 2015 · 81 posts · 49 votes
6y

@Ben Petersen go for it, send the lowballs. I suggest that instead of sending 20 offers, send 20 emails or texts and reach out to the listing agents and see if they would even consider a low offer before your agent spends a ton of his or her time writing 20 of them. You’ll have much better success. Send an email feeling out the listing agent with a price range, then have your agent send the offer if they’re willing to show it to the seller. Most agents won’t even present a low ball offer even though they’re legally supposed to because it makes them look bad in front of the seller.

7Reply
See this reply in the discussion

32 Replies

Jump to latestLatest
  • Asif Kabani
    Real Estate Agent · Central Virginia · Member since 2020 · 38 posts · 20 votes
    2y

    Hello Ben!

    It's great that you're actively exploring investment opportunities. In real estate, it's important to remember that every deal and situation is unique, and what might be considered a "lowball" offer in one context could be perfectly reasonable in another. In the case of a fixer-upper like the one you mentioned, where the property needs significant work and the sellers are highly motivated, offering lower than the asking price is not uncommon.

    As for the "RE Agent Code," there's no formal rule against submitting offers that are significantly lower than the asking price. However, agents do need to maintain professional relationships, so they might be cautious about how these offers are perceived. That said, a good agent should prioritize your interests and be willing to negotiate aggressively on your behalf, as long as the offers are made in good faith and are justified by the property's condition and market value.

    If you find that your agent is reluctant to make these offers, it might be worth having a detailed discussion about your investment strategy and goals. If your strategies don't align, then considering a new agent who is more in tune with your approach might be beneficial. Remember, in real estate investing, persistence and finding the right partnerships are key. Good luck!

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    edit: this a 4 year old post totally irrelevant today.

    go work directly with seller's agents. too many agents have hot air.

    1Reply
  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 333 votes
    2y
    Quote from @Ben Petersen:

    Hey fantastic RE agents of BiggerPockets!

    Earlier today, I was speaking with a friend of mine regarding a few properties that I am looking at. One of the property's is a SFH fixer upper and the owners are "extremely motivated" - it is vacant, they are out of state and just want the property gone. Property needs enough work that the average MLS buyer probably wouldn't be interested. The seller already had one contract fall through.

    MLS asking: 200k

    ARV: estimated 260k (ish?)

    In talking with my friend, I mentioned I might offer 150k or even lower. You know, shoot my shot and maybe I’ll score. My friend was appalled I would do that, citing that my RE agent wouldn’t do that because of a “RE Agent Code” that essentially says that submitting offers lower than 20% would insult the sellers agent and my RE Agent’s reputation would be damaged.

    Is it wrong that I want an agent to send lowball offers? In my mind, I would want to send out 20 offers and hope one works out. Am I wrong in that thinking? If my agent won’t send low offers, do I need to get a new one?

    Thanks in advance!


    That agent sucks! I lowball with clients all the time and its fun! Maybe thats the thrill of working with investors as an agent, if they cant hack the grit... they probably should stick to retail. 

    [email protected]662-642-1458
    Jordan Ray - eXp Realty5112 Reviews
    WebsiteView Page
    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    Of course make the low-ball offers. Just be aware that you will turn off some sellers, and a lot of Realtors. You will not be taken seriously and deemed to be a waste of time by Realtors. And some sellers will not take any other offers once you have 'insulted them'.

    Consider doing this based on each particular property. If it is a piece of crap, of course that is different than makin g a low offer on a nice home. So choose your battles and don't think you can just lowball very house out there.

    I know (because I've been on both sides of this) that quite a few sellers (including me on occasion) will not deal with a buyer again who offers a ridiculous price the first time.

    So do it but be smart about it.

    1Reply
  • Jassem A.
    Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    2y

    Think of it from the perspective of a realtor. Would you want to waste up to a few hours of your time writing a low ball offer that the seller will probably just throw in the trash? If you want to write low ball offers then just print off a standard purchase agreement and fax it to the listing agent's office or email along with a bank statement or mortgage prequalification letter. If they consider your offer then they'll probably have you fill out their own purchase agreement as a self-represented buyer otherwise you will probably not hear back. Before you even do this you should just call the listing agent and ask "Is it still available and if so would the seller consider an offer of $X?" If the answer is not a definite "no" then prepare the purchase agreement and send it over to the listing agent.

    2Reply
  • Jim Victor
    Investor · Golden, CO · Member since 2022 · 10 posts · 12 votes
    2y

    Ooh, I can't not reply to this topic.  An offensive lowball offer I received on a property I listed for sale in suburban Denver back in 2007 is what turned me into a real estate investor.  My realtor (and best friend) still says it was the most offensive conversation he has ever had with another realtor.  Ha!  And 16-years later I still own that property, and it has been fantastic as a rental.  Thanks lowball offeror!  You changed my life! 

    2Reply
  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 333 votes
    2y
    Quote from @Jim Victor:

    Ooh, I can't not reply to this topic.  An offensive lowball offer I received on a property I listed for sale in suburban Denver back in 2007 is what turned me into a real estate investor.  My realtor (and best friend) still says it was the most offensive conversation he has ever had with another realtor.  Ha!  And 16-years later I still own that property, and it has been fantastic as a rental.  Thanks lowball offeror!  You changed my life! 


    Good stuff!

    [email protected]662-642-1458
    Jordan Ray - eXp Realty5112 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free