Investor · Miami, FL · Member since 2016 · 100 posts · 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!
Rental Property Investor · CA · Member since 2013 · 58 posts · 17 votes
9y
Yoni Ramras - noticed you said you submit a pre-approval even though you pay cash- why not just proof of funds? This is key to your submission cash on hand is different from a pre- approval from a lender- and if there are many offers your agent should be making your offer clear as day. Seeing my partner submit offers for clients regularly in a hot market that we are- my partner who is a realtor- makes his offers very clean and thorough in writing. Many of the selling agents tell him they choose his offers bc the write up is clean and thorough. Your agent is key- and definitely should be following up with reasons as to why it wasn't accepted- after hearing 15 offers all cash And over list with your limited contingencies- something is not right. Trust me after seeing some of the trash on paper we get for homes as a listing agent in a hot market- you quickly filter through the ones where you know the agent doesn't know what they are doing- going into escrow with this type of agent is also a headache and realtors try to avoid.
Also - going to the listing agent directly will help just make sure you don't give up any of your protections and are fully aware that an agent acting as dual agent will not always have your best interest in mind - it's a tough line to play. My partner hates representing both bc of this dynamic in the process, but when he does - does it very carefully.
What gets me feeling the most nausea is the failure to find an answer to why isn't there any 'fair competition' rule or principle in this business? Who is a God's name regulates the market? As i see this situation, we must not have the same investors buy all the land or houses in an area and that too all on cash payment. It's like Verizon purchase tmobile or At&T swallowing direct TV and not even burp! Where is the fair competition?
Residential Real Estate Agent · Phoenix, AZ · Member since 2016 · 154 posts · 117 votes
9y
I haven't read the whole thread but shedding light on why you're not getting the properties would all depending on how your market is currently. If you have a very competitive market and there are multiple offers, full price cash is probably not going to cut it, that's the same offer 5 other people put in and then there are 3-4 over asking.
Go back and look at all 15 offers you put in. What did they close at? Your agent should be able to tell you if they were cash or financed. Do you see a pattern? Did all close for cash? What's the pattern, all of them 5%-8% over asking? Have your agent pull all cash closings within 45-60-90 days in the area you are looking in. What's the average list to close price? If it's ''X'' percent over asking on similar properties, now you know how to be more competitive.
As far as going with the listing agent, that can present representation issues if parties don't play together well. In Arizona, all offers must be presented to the seller, the seller is the one who ultimately decides what offer to choose so it doesn't matter if you use the LA or the BA. Personally, I would want to have the agent with my best interest in mind as a buyer, not the sellers best interest.
Rental Property Investor · CA · Member since 2013 · 58 posts · 17 votes
9y
The only reason I see for going with a listing agent for dual representation is that you get the inside scoop or hints for placing a winning offer in a hot market. But make sure you know the process and have all your contingencies in place.
Wholesaler · Columbus, OH · Member since 2014 · 44 posts · 17 votes
9y
Yep @Dan Vleck you hit it on the head. First of all,not all realtors are cut from the same cloth and If your realtor doesn't have the relationships with the banks then they are just another fish in that big pond. I have learned that how you write the offer makes all the difference, and its all about timing. I agree with going to the listing agent as well but I happened to find a good one that knows whats going on and knows where I need to be to get the offer accepted and no other realtor that I have met has been able to pull off some of the deals I got.. No inspection contingency is risky but it supersedes others especially paired with a true cash offer with 10 day close or even less. If you are putting offers in with 30day close terms they will get dropped too. It sucks because of the exposure you have but it just means you have to do your do dilligence and be 100% confident on that offer.
Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
9y
Yoni,
This may be obvious but is always good to check -
Have you circled back to any properties you put an offer on but didn't get to see what they sold for?
If asking was 300K, you offer 330, but it sold for 410 - there is your answer.
I have seen a ton of properties sell for 125%, of asking in certain markets where inventory is as dry as Moore County, TN.
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
9y
John Anderson I am not sure what you mean, but we are an agent so why would I not want to work with myself. I am referencing the past for working with agents. If an agent is that lazy to not want to submit an offer when everything is saved they are not the right agent. Yes the agent does more work but when that house goes back on the market they have to do nothing to get the listing.
Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
9y
@Yoni R. What about closing timeframe? Closing in 14 days vs 30 days means a lot as well.
All cash, no inspection and 14 day close is a very strong offer.
However, if your realtor doesn't say much, I'd say find another one. Communication is very important. I am an investor myself and also work with investor clients. I always advise what offer would make a strong one and is likely to get accepted, what to do in multiple offer situations, and what the listing agent's feedback was.
Rental Property Investor · Erie, PA · Member since 2016 · 168 posts · 124 votes
9y
I also agree on dropping the inspection contingency. If you were asking for inspection contingency because you weren't confident in your numbers, you may want to try doing the inspection before making the offer. I made a handshake deal with a local home inspector to do walk thru's with me when I am doing my repair analysis, and he points out things I may miss. He doesn't write a report for me, but will write a letter noting specific items if I request one. He charges me a fraction of what it would be for a full inspection. For me, it is totally worth having an experience inspector walk side by side with me even before I submit an offer, it brings confidence to my repair numbers and to the offer I present. Maybe that will help you as well.
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.
If you want your offer to be at the top of the pile, put it in through the listing agent and don't use a buyer's agent. You'd be amazed at what double ending the commission will do to their perception of the quality of your offer. Give them what they want to get what you want.
Lender · Miami, FL · Member since 2015 · 3 posts · 0 votes
9y
Yoni Ramras what's the price range you're looking at? All my buyers have been able to find and have their offers accepted but I provide commitment letters. Not preapproval letters.
Are you buying in cash, or are you financing?
Marietta, GA · Member since 2016 · 26 posts · 12 votes
9y
@Yoni Ramras. Many variables to consider, but definitely talk to your Realtor to find out what is wrong with your offer. Being an investor myself and a Realtor, I can tell you that many Realtors don't understand the investor mindset. Having submitted 15 previous offers, it won't be hard to narrow down what needs to change. Have your Realtor look at those 15 properties and see what they sold for(above ask?) and the terms i.e. financing/cash, closing costs paid by seller, etc. That should give you and the Realtor more than enough info to make future offers and be in the running.
Real Estate Broker · St. Louis, MO · Member since 2014 · 206 posts · 194 votes
9y
I remember this movie from 2006. Bottom line is the market is not rational and you are competing with people who are not rational either. I would consider taking a time out or looking in a different market.
Real Estate Broker · St. Louis, MO · Member since 2014 · 206 posts · 194 votes
9y
One more thing.... should you choose to participate in this latest game of musical chairs go direct to the listing agent with your POF and have them write for you.
Real Estate Entrepeneur · Minneapolis, MN · Member since 2015 · 9 posts · 37 votes
9y
Change your focus. There's so much competition for investing in single family homes. Move to multi-family. The big hedge funds are snatching up the "A" quality in "A" neighborhoods, and 400 doors and up, but the small multifamilies have less competition. Best of luck!
Lake Saint Louis, MO · Member since 2016 · 28 posts · 7 votes
9y
@Yoni R. I am currently experiencing the same thing on a property I'm interested in. I told my realtor that I'm interested in finding creative ways to lock in the deal. He told me that I could execute an Escalation Clause. This simply states that I could offer, for example, $40k cash or $1k over best offer, not to exceed $46k cash. If they do not have an offer higher than $40k, they would take it. If they have an offer of $45k, it could be offered to me at $46k. Im intrigued by this strategy. At this point, provided the seller is still accepting offers, I'm executing this clause.
Keep asking around~ where there's a will, there's a way! Good luck!
Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
9y
Going straight to the listing agent is fine, but not necessary. If your offer isn't what's best for my seller, I'm not going to try to convince them otherwise, even if I've written it up for you as an unrepresented party. Getting into first position isn't about tempting me with a little more money, I value my ethics and my license. Getting your offer accepted is about presenting the best offer in terms of money, time, and consideration for the sellers' situation.
Time: Early good offers are great. If your agent is slacking in getting offers submitted, that could be an issue.
Money: If you have proof of funds and your offer is in the ballpark, you should at least be getting some kind of response. Offers over asking price but not the highest usually get a counter. @Yoni R., of the 15 sellers that denied you, what was the eventual sales price? That will tell you if your offers are too low.
Consideration for the sellers' situation: Reducing or eliminating the inspection is a good move, as long as you can handle whatever the property throws at you. Sometimes closing quickly isn't as important to sellers as we think. Usually the listing agent can give an idea of any special considerations the sellers are looking for (rent back, quick close, etc.)
I'm thinking that your agent needs to do some homework here and figure out what's going on. You have 15 offers to analyze, that's enough to draw some conclusions. If the agent is clueless, take that as a clue.
On the other hand, if you have been going against your agent's advice in any of the above areas, that might be the problem. Consider if there's anything you've dismissed - maybe that was more important than you realized.
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
9y
@Yoni R., reducing or removing your inspection contingency, increasing your earnest deposit, and making a very quick closing date are other tactics to strengthen your offer. That said, any good deals (especially REO's) on the MLS are getting multiple offers in almost every market right now. There is a lot of money chasing deals, and quite frankly a lot of people are overpaying or are willing to accept a lower return and/or greater risk than you.
I would suggest devoting some time and money into direct mail, a quality website, PPC and SEO. Obviously keep an eye on the MLS, but don't use it as your primary deal source - think off market. You will get a much better gauge on your offers when you are getting feedback directly from the seller instead of filtered through 2 different agents.
Investor · Saint Louis, MO · Member since 2014 · 113 posts · 43 votes
9y
Usually investors don't ask for an inspection because they should be savvy enough to find stuff on their initial walk through.
Also making 15 offers and not getting them accepted is no big deal. I've gone about 200 before. I probably average 30 offers before I get one accepted.
And in order to get your offer in 1st position, your offer would have to be the first one submitted that wasn't thrown away.