Realtor advises against making official lowball offers - your take?

Question

In a search for my own property I finally got one under contract. It's a short sale and they've got 30 days to get the lien holder approval (they actually advertised it as pre-negotiated, but wanted 90 days for this).

In the meantime, I want to keep searching and making offers on properties.

My Realtor doesn't seem to be inclined to make official low ball offers - his reasoning is that it's "insulting" to the seller's agent and wastes everyone's time. This is a conversation we had over the phone yesterday:
Me: I don't want to waste your time and money by driving out and looking at all these properties, considering we already got one under contract. I still want to keep looking though, that's why I want to make some lowball offers on other properties.
Him: that's fine, but sending an email message saying "my client wants to offer $50k less than you're asking - how do you feel about that - should we even submit an official offer?" is far more effective than straight out shooting an official offer for a lowball price. Otherwise the agent will think "what are you stupid - why are you wasting my time with this"?

Any advice? Is he trying to save himself from doing extra work? As far as I know, an official offer MUST be passed onto the owner, whereas a lowball "email" offer doesn't have to be.

Thanks!

Jon Frame · Answer

I always loved that "insult" comeback.

Tell your Realtor "That's not an insult that's just a number, if I call you fat and ugly, that's an insult !!! Now please put the offer in or I will find another agent"

and yes I do know someone who used that........ :D

Jon Holdman · Answer

Takes a lot of time to make offers? No, it doesn't. If you and your agent get set up with electronic contracts, it shouldn't take the agent more than a couple of minutes per offer. If you're making dozens, yes, that's some time. If you're making a half dozen at a time it should not be a big deal.

If you're doing them on paper (why?) it takes longer, but still no more than a few minutes. Start with a blank contract with all the terms and signatures. Make copies. Fill in the address, legal, and offer price. Fax it over.

If you really are making dozens of offers a day, I'd think you would want to automate this and just fax an offer directly to the listing agent.

Nick J. · Answer

I'm not a complete realtor hater/basher because I actually do love them(the good ones) but you have to look out for yourself and not worry about them especially when it comes to your personal residence.

Tony Walker · Answer

These are just great responses from the group. :mrgreen:

Here is one from me:

Ever hear the saying, ( you can lead a horse to water but you can"t make him drink ) ???

Then what do you do? ( find a thirsty horse ). :lol:

Craig Grella · Answer

In many states, especially if you have paper with them before making offers, the agent is required to submit your offer, no matter how "stupid" it makes you look. The only reason they would not do so if there was a pre-existing condition from the seller that says not to accept offers lower than a certain amount. If that condition doesn't exist your agent could be breaking several agency rules and could be fined for his/her conduct.

Outside of that, I'm sure there are hundreds of hungrier agents in your area that would be happy to get your business.

Nick J. · Answer

You need a different realtor!

It's obvious your Realtor is more concerned with commission.

Offer what you know is a good price to purchase the home. Your Realtor is supposed to be on your team NOT the listing agents team.

Brian Levredge · Answer

I second what Nick said. It really sounds like he's looking out for himself. Who gives a _______ what the seller's agent thinks. His job is to represent his client and they will either counter, accept, or tell you to pound sand, which leaves you no differently than where you are at.

Email offers are useless because it's not a legal offer. A legal offer has to be considered even if the consideration is to say no. I would find someone a little hungrier. Also, you might want to think about doing more of the legwork yourself to alleviate the costs if you are going to be low balling.

Steve L. · Answer

Are you offering on REOs? You should work on finding deals that are just priced lower so you are not 40% off the list price. Usually asset managers are only authorized to negotiate 5-10% off without senior management approval.

Making many offers is a lot of work, but if your agent isn't willing to deal you should consider finding someone else.
If you make the offer a PDF, leave the price and address blank you can usually only edit one page per offer. Maybe if you offer to do that part he will be more anxious?

Ivan Jouikov · Answer

I think this guy is right up my alley:

I agree with you that â€œemail offersâ€ if they are not on the standard forms are worth very little. I would not consider anything else than a written offer to be a serious offer. All listing agents will tell you just to put it in writing and then it can be accepted or negotiations can start.

If you are making low ball offers you need the benefit of an actual written offer in front of the sellerâ€™s eyes to make them consider it, and to have them react. It also makes it mandatory for the listing agent to present it regardless of what he thinks about it.

:)

Nick J. · Answer

Matt, if you want a cash buyer/flipper for Short Sales in CA, I'm all game my friend. I'll even deal with the banks ;)

Ivan, please let us know how this unfolds. I'm interested mainly because it is for your primary residence and would love to hear you found a great agent and a great house for your family.

Realtor advises against making official lowball offers - your take?

Realtor advises against making official lowball offers - your take?

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