How not to annoy the real estate agent

Question

OK, question: using the BRRR method and playing the numbers game by analyzing a lot of deals I would then put in a lot of offers, until I find someone that will take my offer. But I obviously dont want to visit all of those homes with my agent because most of those sellers arent going to except a low ball offer. So I just want to confirm that it is normal practice to put in a lot of offers, sight-unseen. I assume that if an offer is excepted, you would then go to view the property and assess the rehab costs. Also, would you view that property before or after you sign the offer? And if you finally visit the property and find that it needs more rehab than you are willing to take on, I assume you can exit the contract?

I know I am mixing a lot of questions in there. I just need to be walked through the actual steps I would take when throwing out a lot of low offers on distressed properties.

Abel Curiel · Answer

Hey Phillip,

As long as you're pre-approved and can be considered a serious buyer, I don't see why the agent would have an issue putting in multiple offers (especially if its sight unseen- HUGE time saver).

The way it usually works (as per my experience) is that once an offer is accepted, we move onto the inspection which then determines whether or not we will go forward with a contract. In the offer, I usually add a contingency based on financing, inspection and appraisal. This protects the buyer's EMD in the event that they want to back out of the agreement. However, if you're in a competitive market, sellers prefer offers with less contingencies.

That being said, if you feel like you might be backing out of a lot of these offers, I would say visit the property or at least drive by before submitting offers. Agents only get paid at closing and if you want to keep a good agent on your team, you should value their time.

Best of luck to you!

-Abel

David Faulkner · Answer

I wouldn't use a buyer's agent; I'd put the offer in through the listing agent ... have them show you the property and then write up the offer. I know that putting in an offer sight unseen and then trying to retrade it during escrow based on inspection is common, but I personally think it is a bad practice that can give you a bad name and some experienced listing agents may rightfully warn their clients to be wary of sight unseen offers for this very reason. If you view the property first before offering, then during inspection find something that there is no reasonable way you could've seen from the initial viewing, and then you want to ask for a discount or walk, that is a completely different matter and totally legitimate IMO.

Mindy Jensen · Answer

@Phillip Vaughan , you should be upfront with your agent that this is your intent. Most agents use electronic signature software, so they can send you the contract instead of drive to your house to have you sign it.

Most of the software has the option to save the most pertinent parts of the contract, such as your name and terms. The address and price can be added quickly, saving your agent a lot of time.

If I knew I didn't have to show you properties in a hot market until after you had them under contract, I would happily change addresses and prices in a document. I could show you 1-2 houses in an hour, or write 15-50 offers in that same time.

To be fair to the seller, make the appointment to see the home as soon as the offer is accepted. In my MLS system, I have a few days to make a change to the status of a property. I would probably take my time updating it if I had a buyer who had not yet seen it and I knew it was a dump... Especially if I knew they were coming to see it the next day.

How not to annoy the real estate agent

How not to annoy the real estate agent

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