Realtors holding offers 2 increase price or double commissions

Frank Wolter · 2018-09-30T14:18:54-07:00

This post is for investors. Realtors might not seem to care and might think its ethical but I hate when Realtors or Brokers do this. So here's how you can over come it. You might seem to come across a property you like. You place your bid and you just don't hear anything. Time goes on then all of a sudden the listing realtor contacts your realtor and says the have your offer or what ever bs excuse they used to delay contacting you. Oh and guess what. Now your in a multiple bidding situation. SURPRISE! Just great. Your guaranteed to over pay. And in Cleveland if your in a multiple bidding situation with a out of town investors for sure pull out. Because they are going to rape that out of town investor and tax the hell out of him. Me I personally pull out. But here's one thing that I do that isn't a big deal but helps with the crooked realtor. I put a 48hr expiration date on the purchase agreement. Try to make it a common practice. Some times I forget and then I take the ride but then pull because I don't like games. Not a real big deal but it puts fire on under the Realitors tail to present the offer to the seller right away. Hope this is helpful. Good luck investing

Sam Shueh

Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes

8y

Our area often have a reviewing all offer time often is mid following week. Some one wants to beat a cloud with a 24 hour expiration deadline thinking he can beat the crowd. Read the instructions. The expired offer will not have an edge. These days there is a no preemptive offers to be honored instruction clause. You follow the instruction seller prefers. Being creative offers will be tossed out.

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Phillip DixonPro Member

Residential Real Estate Broker · Chicago, IL · Member since 2017 · 4 posts · 3 votes

8y

@James Wise That's exactly what I tell my buyers. In a hot market and a hot property 48 hour expirations/threats almost always backfire. If you want them to really work you have to make the offer more enticing prior to expiration. For instance, non-refundable earnest in the event of a bad inspection. Once that period expires your offer will no longer include the guaranteed earnest.

It's 2018 everyone is sensitive to being threatened. What if you seller is the opposite sex? Your 4 hour or 24 hour expiration may come across as bullying or even a threat. Listing agents laugh at these empty threats, because after all, it's you that wants the property more than the seller.

2 Reply

Ryan Howell

Rental Property Investor · Hendersonville, NC · Member since 2016 · 446 posts · 412 votes

8y

@Frank Wolter. Out of curiosity does anyone ever attempt to contact the seller directly if they feel they are in these situations? I’ve on occasion just called the seller if I could find a contact number and verify they know who I am and my interest in their property. I haven’t been in this exact situation but I have been in situations with very poor communication between realtors. Sometimes it seems to have been helpful. I know of people who have done this after submitting offers to find the seller never received the offer from the realtor.

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Chuck Walker

Ofallon, MO · Member since 2018 · 21 posts · 6 votes

8y

Certainly, I would want my realtor to get me the highest price for my property. However, I do agree that having a realtor make up lame excuses and lie about if an offer was received or state there is a bidding war when there is not just in to drive up prices is completely unethical. If you are selling a property and want $300k for it, list the house for $300k and let the market respond. If you get an organic bidding war, fantastic! If you get 20 offers below asking and that's it...re-evaluate your price. Honestly, I've never come across a realtor who was 100% in the game for the client. Agents are thinking about their bottom line just as much as an investor, homeowner, home buyer is thinking about their own bottom line. Further, I fall in line with many other respondents to this post in that I place an expiration on the contract. I don't care if the agent "ignores" the expiration, that's a situation they'll have to take up with their client if no other better offer comes in and I was sitting in the top position. If my offer expires and then I get a call from the agent saying my expired offer was accepted by the seller, I re-evaluate the deal and rarely go back with the same offer. Why? Because it sends up a red flag that perhaps I missed something and I need to look closer at the numbers/etc. This practice of mine in these particular situations has resulted in more purchases than loses. Heck, I've had sellers come back after expiration saying "yes" and when I say "no thanks" to the original offer they start walking back their price trying to find a way to get me on board.

Unfortunately, it can become a cat and mouse game when it doesn't need to be one. And, it can absolutely bite the seller and/or agent in the butt if buyers start calling the bluff or balking at the practice.

1 Reply

Frank Wolter

OP