Can't get my offers accepted

Buying & Selling Real Estate
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Can't get my offers accepted

Yoni R.Pro Member
Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
I've put in offers for over 15 houses and still haven't had an offer accepted. I'm offering cash, 5 day inspections, full price (and sometimes more on some of the houses) and still no luck. Maybe somebody can shed some light on what's going on or what to expect??? I'm buying in the Miami and Broward areas. Thanks!
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Carlos Coppin Jr
Wholesaler 路 Plantation, FL 路 Member since 2014 路 194 posts 路 121 votes
9y

Offering full price and still not getting accepted? Who's your agent Martin Shkreli? 馃ぁ

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    9y

    What does your agent say?

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  • Malgorzata SadowskaPro Member
    Real Estate Agent 路 Miami, FL 路 Member since 2017 路 506 posts 路 205 votes
    9y

    my thoughts exactly:). Agent should be putting you in first position. Warmest regards from Miami, 

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  • Carlos Coppin Jr
    Wholesaler 路 Plantation, FL 路 Member since 2014 路 194 posts 路 121 votes
    9y

    Offering full price and still not getting accepted? Who's your agent Martin Shkreli? 馃ぁ

    10Reply
  • Thomas FranklinPro Member
    Real Estate Investor 路 Miami, FL 路 Member since 2010 路 939 posts 路 739 votes
    9y

    @Yoni R. I understand and feel your pain. I am in the same situation. In addition, I have gone through so many Miami Realtors that I have lost count. For whatever reason, many Realtors fail to see the big picture and unwilling, to see value in creating a long term working relationship that creates a Win-Win Situation. Finding a truly "Investor Friendly" Realtor, in South Florida is analogous to searching for a needle, in a Haystack. I completely agree, with @Malgorzata Sadowska that a quality Real Estate Agent should be able to find a way, to place you, in first position. 

    2Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    John Anderson I am a very serious investor and all my offers are accompanied with pre approved funds/bank statements and also money deposited in escrow with my lawyer. I have all ducks in place. What do you think?
    1Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    Russell Brazil my real estate agent doesn't say much. Truthfully I don't think she knows how to put my offer in first position. What would that entail? Isn't it by highest offer and cash offers? That's what I have been doing? Is there other criterias that the selling agent considers? Saying that my agent is very good and pushes to find me new deals and get the offers submitted asap.
    0Reply
  • VeinTwain H.
    Real Estate Agent 路 Killeen, TX 路 Member since 2016 路 71 posts 路 25 votes
    9y
    1st all offers are cash to a seller because at the end of the day they will be getting a check or wire regardless... With that being said what cash offers is a smooth quick closing in most cases. So long as you have proof of funds you are in a strong position. 2nd sit down with your agent tell them you want to know why your offers are not being accepted because when I reject an offer on behalf of my seller we give a reason why. 3rd it also depends if you are doing bids or a open market deal if you are bidding on a hud or foreclosure they have certain criteria and higher offers don't always win if it is open markets have your agent ask other agent if there are other offers if there are give your best offer first to increase your chances. There is a lot that goes on in the negotiation process let your agent know you want to be fully involved and you will start getting offers accepted. Or fire them and get a better agent that knows how to make a deal happen.
    6Reply
  • Christine Kankowski
    Real Estate Broker 路 Temecula, CA 路 Member since 2014 路 992 posts 路 782 votes
    9y

    I guess if you market is popping like crazy, there are offers over list price. However, for 15 offers, you should really have had some sort of feeedback frm sellers as to why they didn't choose yours.  With cash, I assume you dont have any contingencies, other than the 5 day inspection, right?  Not asking for any other fees to be paid by seller?  (escrow, home warranty, termite, etc)  Your agent should follow up with those listing agents to find out what was better about the other offers.  Myabe there is something in your offer that is scaring people away..

    1Reply
  • Carlos RoviraBusiness Member
    Investor 路 Miami, FL 路 Member since 2015 路 329 posts 路 124 votes
    9y
    Yoni Ramras drop your realtor, go straight to the listing agent and offer them the full 6% commission. That should motivate them to get you in "first place."
    9Reply
  • Robert G.
    Residential Real Estate Agent 路 Miami, FL 路 Member since 2013 路 195 posts 路 138 votes
    9y
    Originally posted by @Carlos Rovira:

    Yoni Ramras drop your realtor, go straight to the listing agent and offer them the full 6% commission. That should motivate them to get you in "first place."

    Bingo. 

    Not speaking from experience (I have my license but I am not an active agent), but I think this is your best bet.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    9y
    Originally posted by @Yoni R.:

    Russell Brazil my real estate agent doesn't say much. Truthfully I don't think she knows how to put my offer in first position. What would that entail? Isn't it by highest offer and cash offers? That's what I have been doing? Is there other criterias that the selling agent considers?

    Saying that my agent is very good and pushes to find me new deals and get the offers submitted asap.

    Hierarchy of how the financing affects the property

    A)All Cash

    B)High Down Payment Conventional

    C) Low Down Payment Conventional

    D) FHA/VA

    So what you need to figure out is the dollar value of the different types of offers here. If you are using less preferential financing then you need to escalate in large dollar amounts over other offers. At a median price point in my market of $500k or so, an FHA/VA loan is going to need to escalate $5-10k over a conventional to win the bid, and $10-15k over an all cash. Conventional might be more like $5k over an all cash if all contingencies are waiver.

    Its important to note that the escalation of an FHA/VA is not the amount the seller will realize as their is often lender required repairs and termite treatment thats going to take a chunk out. So $5-10k over next best with an FHA/VA may even be the case at lower price points since the seller will be out a thousand on most of these loans for termite spraying, and another thousand in miscellaneous repairs.

    What else can lend weight to your offer? Do you have a pre-approval as opposed to a prequal letter. Even further some lenders offer programs where they will fully underwrite a prepproval and offer you a commitment letter. This means you have gone through underwriting and the lender has set the money aside for you already. With this you can close quicker too. Further are you using a reputable lender as opposed to some internet chop shop or quicken loans, or someone who is going to screw up the transaction. Are you using a reputable title attorney who can clear the title quickly.

    Is your agent having a conversation with the listing agent before to find out what terms might be helpful to them to add weight to your offer like a certain closing date or a rent back, or something.

    Also if the market is hot, you might have to consider waiving contingencies. There are locations in my market where it would be impossible to get a home inspection contingency accepted.  If this is a must for you, then assign the dollar value to it...maybe getting one accepted costs you an extra $5k or whatever number.

    I dont know the experience level of your agent....but they need to know how to put together an offer than can compete in a hot market, how to communicate with the other side effectively.  

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  • Peter Sik
    Los Angeles, CA 路 Member since 2016 路 134 posts 路 15 votes
    9y

    @Carlos Rovira

    @Robert G.

    Do you mean the listing agent will get 3% commission from the owner plus 6% from buyer?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    9y
    Originally posted by @Carlos Rovira:

    Yoni Ramras drop your realtor, go straight to the listing agent and offer them the full 6% commission. That should motivate them to get you in "first place."

     Not as effective as one might think. One of the things most real estate commissions audit for n hot markets is if the seller is being stared towards the best offer for them, or towards a dual agent offer. Many unethical agents lose their licenses, end up with huge financial liability because of things like that...and that scares off a lot of listing agents from acting unethically.

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  • Jason V.
    Investor 路 Rochester, NY 路 Member since 2016 路 477 posts 路 426 votes
    9y

    Can we back up a second and talk about making cash offers over asking price for MLS properties?

    What the heck is going on in Miami to make that something investors want to do? 

    I really am curious, not critical - I guess if the numbers work, they work, but that sounds like a nightmare situation to me.

    4Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    Jason V. It's unbelievable to me too. I started out making offers with mortgage pre-approved letters and after I didn't get any offers accepted I moved on to all cash offers. I literally made 5 different offers last week all in cash and none we're excepted. Miami is hot.
    0Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    Russell Brazil great info thanks. So, I am all "A" according to your list. I have a pre approval letter all ready and for much more than the houses I am offering on. That letter is submitted with each offer along with another letter of escrow. Still nothing... I'm starting to think the really only important thing a realtor can do is know how to put your offer in first position. All the rest is pretty worthless... I wonder if there are realtors that actually know how to do that??? Or all they all pretty much just paper pushers?
    0Reply
  • Jimmy Cantave
    Miami, FL 路 Member since 2015 路 154 posts 路 38 votes
    9y

    @Yoni R. wow that's insane 

    I hope you get a deal ASAP! 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    9y
    Originally posted by @Yoni R.:

    Russell Brazil great info thanks. So, I am all "A" according to your list. I have a pre approval letter all ready and for much more than the houses I am offering on. That letter is submitted with each offer along with another letter of escrow. Still nothing...

    I'm starting to think the really only important thing a realtor can do is know how to put your offer in first position. All the rest is pretty worthless...

    I wonder if there are realtors that actually know how to do that??? Or all they all pretty much just paper pushers?

     I don't think we are all paper pushers, and if you were putting together the offer like I outlined above you would be winning bids.

    If you are escalating over the offers by significant amounts of money...then they would take your offer right? Why would they sell to Buyer A at $400k if you are offering $410k? So your offers simply are not escalating high enough or in significant amounts over.

    The problem is either your agent doesn't know how to structure that offer, or you are not allowing them to structure it in a way to win. I know plenty of agents who don't know how to compete in competitive market....but my buyers, if they don't win is because they don't listen to my advice. Just had it happen this week. Property listed at $395 that I knew would sell for about $410 to $415. They did escalate in $5k increments but he only went up to $400 and I advised him it would go to $410 to $415, so he should escalate to $420 at least if they wanted to win. Only so much you can do if the client doesn't want to listen.

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  • Account Closed
    Johnson City, TN 路 Member since 2014 路 586 posts 路 705 votes
    9y

    It's starting to sound like 2006 again. Reminds me of musical chairs. The music is suddenly going to stop.

    2Reply
  • Ed B.
    Real Estate Investor 路 Sacramento, CA 路 Member since 2010 路 292 posts 路 103 votes
    9y

    You're fighting a losing battle. How can you expect to profit if you're paying over asking price?  The goal is to make a profit, not be the stupid stooge who buys the property because he's willing to pay more than others. 

    1Reply
  • Dan Vleck
    Deerwood, MN 路 Member since 2014 路 184 posts 路 122 votes
    9y

    Two hints on how I'm buying. Straight to listing agent and no inspection contingency.  Only recommend if you are confident in your own ability to inspect and know your numbers.  My last house was bought move in ready and 11,000 below list price. Current offer which I'm lead buyer is a foreclosure 7,000 over list price.

    0Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    Ed B. Believe me any deal that I make an offer on I am making a profit. I mainly offer on rental income houses. Only a few are for flipping. I may be new in the real estate arena but in no means am I new in business.
    1Reply
  • Yoni R.Pro Member
    OP
    Investor 路 Miami, FL 路 Member since 2016 路 100 posts 路 22 votes
    9y
    Dan Vleck I'm getting very close to that point. Just didn't have enough confidence to not have an inspection. I'm pretty good at pricing things out but I'm always worried about the roof and plumbing.
    0Reply
  • Shiloh LundahlPro Member
    Rental Property Investor 路 Gilbert, AZ 路 Member since 2016 路 3k+ posts 路 4k+ votes
    9y

    I agree with @Carlos Rovira. Have you tried going directly to the seller's realtor. I found a property in Apache Junction, Arizona, that was an REO and I contacted the seller's agent directly and told him that I wanted the house and asked him how much I needed to offer on the house. The house was listed at 124k and it needed a lot of work. He said that if I was at 138k that I would probably get the house. I did my numbers off the 138k price and it still worked so I offered that on the house. That house turned out to be my second highest profit on a flip for 2016.

    By the way, I get how frustrating it can be to make 15 offers and not get any properties under contract. I went through that a lot last year.  This year though I have changed my strategy.  Rather than getting frustrated, this year I am playing the numbers game by making more offers to get more deals.  We make about 2 offers a day (10 or so a week) and we have been getting a lot more accepted.  Once they are accepted, my business partner or I will take one of our contractors out to the property so see how much work it needs.  If I needs more than we thought and more than the numbers can bear, then we either lower our offer or we cancel the contract.  So far this year we have probably made 40-50 offers, bought 2 buy and holds and we are going to close on a flip next week, and we have cancelled 5 or 6 contracts.  Still most of our offers get rejected because we make offers where we can make 20k (10k for my wife and I and 10k for my partner) on a flip, or cash flow at least $100 per property after we get it financed with a local bank and partner with an investor to get the majority of our cash out.

    I'm not sure how the Phoenix, Arizona market compares to Miami, Florida, but there is a lot of competition out here as well.  So I encourage you to not get discouraged but instead to play the numbers game.

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  • Account Closed
    Carlsbad, CA 路 Member since 2017 路 2 posts 路 0 votes
    9y

    Well ... Your offers weren't accepted but what did the property sell for?? did someone out-bid you? and it actually sold above MLS. I am currently being used by the selling agent - she is using my full price all cash offer to try and drum up a higher bid. Pissed.

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