Agent submmits offer too late!?

Question

So I'm trying to buy my first rental property. I've found this sweet deal; a house upstairs with a seperate basement suit in an middle class neighborhood. I came across it myself (as I'm actively searching) and forwarded it to my agent to get me access to it. After viewing I decided to run some numbers and make an innicial offer on it. First my agent presented my offer verbally over the phone to the listing agent and came back to me that it was too low.I then increased the offer, but it was still too low. Up till that time there is no written offer presented and I understant that my agent is trying to steer me into the right price range. But when i made my third reasonable offer and I inssisted to present it to the seller himself, it took my agent  24hrs from the time I texted him my offer to show up at my place and get my physical hand signature on the offer! He insissted on doing it face to face instead of doing it digitally. By that time I had 2 other competing offers lined up and we didn't get the house of course. My question is: is this the right agent for me? Or am I missing something here?

Russell Brazil · Answer

Should He be doing things electronically? Yes.

But I also think its funny everyone tries to blame other people....you're the one who waited a day from emailing him to decide if you wanted to make an offer....then you wasted time making 2 lowball offers. Thats what happens while your wasting time, people come in and take the deal.

Bruce Lynn · Answer

In Texas all valid offers have to be in writing, so verbal offers are more like fishing....you might catch something you might not.   I can tell you as a seller I want to see the whole offer and proof of funds up front, signed and in writing.  I want to see the whole package, not just the big or small number as it may be.  I want to know when you will close, cash or financing, how much up front, who's buying, who's financing, any seller concessions, etc.

These days we do a lot of electronic signatures to make things faster, because the market can be speedy.  I am not always a fan of this with my 1st time clients as I feel like we should meet and discuss the offer, options, what things mean, maybe we talk strategy with the offers.  Once we have done that then I feel more comfortable personally with electronic signatures.  Of course with Covid stuff now too, no one really wants to meet in person, which makes everything doubly tough.

I'd just discuss it with him.  Maybe for the future he can set up a template with all your info filled in, and just need an address, legal description and price, and it will be faster.

In my market, your scenario would likely be the same....I saw somewhere about a year ago that about 1/3 of the offers were cash and 1/4 of the transactions buyer never saw the house.  We try to get the offers in and done ASAP, but depends on when you make a decision, how fast I can turn around your offer, etc.   I'm not always a fan of making blind offers, but your competition may be comfortable making offers first, then going to see the house after getting them under contract.

You could also have your agent to set up your documents/offers to go straight to the other agent as soon as you sign, so no waiting there.

Best wishes, good luck, and hopefully you get the next one.  There's always a better deal around the corner.

Wayne Brooks · Answer

I do think he should be using the electronic offers.  But, don’t think that the seller would have immediately accepted your offer....he still would have seen, or known the other offers were coming.  This is one reason for Not starting  offers too low and then working your way up, in a competitive market.

Jerel Ehlert · Answer

The question can be flipped on its head: are you the right buyer for the agent?

Agents do a lot of work up front for buyers that don't get compensated for by commissions. If you insist on approaching unmotivated sellers to put unrealistically low offers, you are wasting time.  Take the hint.

24-hours to put in a written offer? Not unreasonable. Getting your physical signature is the 5-pound sledgehammer hint that you are being unreasonable.

If you want to submit lots of offers on lots of properties, most of which will never get accepted (the "spaghetti method"), you need to deliver the offers to the agent yourself.

Mike Cumbie · Answer

Hi @El Hoummadi

It may also make a difference on where you live. For instance we have attorney approvals. So essentially a deal can be killed for any reason within X days (Commonly 3) by either side. If you are in a similar area and your deal was of interest, they would have been able to kill the other one. I was looking at one in a different state this weekend and 15 minutes before our videocall I was told "They accepted an offer and didn't want to wait for you". I'm guessing that area doesn't have approvals. But each seller has different motivations too. Some want the quickest fast offer, others want to stach up everything they can find. No real rhyme or reason.

Good Luck!

El Hoummadi · Answer

Thanks for the replies. Very valuable insights!

Kevin Hunter · Answer

@El Hoummadi, fire and move on

Kevin Hunter · Answer

@El Hoummadi, no it is not.  Move on and find another agent.

Agent submmits offer too late!?

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