My Agent Willnot put an Offer becuase is too low.

Buying & Selling Real Estate
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My Agent Willnot put an Offer becuase is too low.

Tirzo Quintero
NJ · Member since 2018 · 22 posts · 8 votes

HI All,

I have an issued. There is a house that has been 290 days on the market. This is a multi family 4 beds 2 bath and a a garage, lot size 1742 sqft and it is owned by a bank. The price is 205K. my exit estrategy is to wholesale the deal as the house needs a lot TLC and the ARV is 270K. I can also choose to fix and flip but I don't have experience but willing to take n the challenge. The house has been under contract three times and for some reason haven been sold. I have asked my agent since I haven't since the house to out an offer for 135K. However, my agent don't want to put the offer because it is too low. My thinking is if it has been so long in the market, and haven't been closed in the three times it has been under contract, something must be wrong with the house. Am I wrong? is it really my offer too low? Like Brandon says put an offer you never know... I don't know what to do..

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Steve McGovern
Professional · Lowell, MA · Member since 2014 · 232 posts · 223 votes
8y
@Tirzo Quintero I'm a licensed Broker in Mass and I can tell you that this practice is absolutely illegal here. You could offer to trade the house for a take out menu from a closed Chinese restaurant, and I am OBLIGATED to bring it to the Seller for the Seller's review. I think a simple web search will tell you whether this is similarly illegal in NJ. Good luck!
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  • Steve McGovern
    Professional · Lowell, MA · Member since 2014 · 232 posts · 223 votes
    8y
    @Tirzo Quintero I'm a licensed Broker in Mass and I can tell you that this practice is absolutely illegal here. You could offer to trade the house for a take out menu from a closed Chinese restaurant, and I am OBLIGATED to bring it to the Seller for the Seller's review. I think a simple web search will tell you whether this is similarly illegal in NJ. Good luck!
    22Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    find an agent that will write it up for you.. 

    Or go direct to the listing agent and have them write it.. 

    Or write your own contract and present it to the listing agent.. nothing wrong with that.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Tirzo Quintero you said "Your Agent". If the agent works for you, (meaning you have a buyers agency agreement) that agent has a fiduciary duty to you to make the offer.  Until that agent fires you as a client he or she is breaking the law. 

    If you go directly to the buyers agent as @Steve McGovern he or she i legally obligated to present your offer. 

    There is a third possibility. You could go to an agent that you have not made a contractual buyers agent relationship. It will depend on your state's law but generally that agent is technically working for the seller and you are back to he or she is legally required to present your offer.

    4Reply
  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    Thank you all for the suggestions and insides.

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    @Steve McGovern Illegal, I doubt it.  Must a listing agent submit any Written contract offer...yes.  This is more of a “I don’t work this way, I won’t represent you in this”.

    4Reply
  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    @Ned Carey The real Estate Agent set me up with the automated listings emails. I saw this property and when I told him what I wanted to offer he said it is very difficult or impossible for the offer to be accepted. He is a nice guy and has been willing to work with me sending me listing and showing me houses, that is why I am hesitant to just go directly to the listing agent.

    0Reply
  • Steve McGovern
    Professional · Lowell, MA · Member since 2014 · 232 posts · 223 votes
    8y
    @Wayne Brooks very true, that offer must be in writing, but the point is still the same: it is illegal for me to not present an offer.
    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Tirzo Quintero good for you that you want to be loyal to an agent that has helped you. However if he won't make the offer for you,  then go directly to the listing agent. If the deal actually works out you can always give him a gift for giving you the lead. That would not only be a nice gesture it might teach him that sometimes low offers are accepted.  

    Sometimes a low offer gets countered and gets serious negotiations happening.

    7Reply
  • Steve McGovern
    Professional · Lowell, MA · Member since 2014 · 232 posts · 223 votes
    8y
    @Tirzo Quintero heres your answer, exactly as @Wayne Brooks noted. From NJ RE commission reg 11:5-6.4 (g) If any offer on any real property or interest therein is made orally, the licensee shall advise the offeror that he is not obligated to present to the owner or his authorized representative any offer unless the offer is in writing. Unless a writing containing or confirming the terms of the listing agreement otherwise provides, the licensee shall transmit every written offer on any real property or interest therein presented to or obtained by the licensee during the term of the listing to the owner or his authorized representative within 24 hours of receipt of the written offer by their firm. For the purposes of this section, the term of a listing shall be deemed to expire either on the termination date established in the listing agreement, or upon the closing of a pending sale or lease. If any acceptance of an offer is given orally, the licensee shall secure the acceptance in writing within 24 hours.
    3Reply
  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    @Steve McGovern and @Ned Carey Thank you for the advise and lessons I am learning a lot.

    0Reply
  • Bjorik Mutize
    Real Estate Broker · Minneapolis, MN · Member since 2016 · 530 posts · 398 votes
    8y

    Yea...i agree with above posts with the requirement to legally present the offer.

    Of course, unless the language from the agent is to consider re positioning your price into a more competitive position.......in his/her eyes. 

    Even then.

    0Reply
  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    8y

    @Tirzo Quintero did you ask the agent to explain why he will not submit the offer?

    1Reply
  • Jodi Paulovich
    Rental Property Investor · Pgh/NYC · Member since 2014 · 8 posts · 8 votes
    8y
    @Tirzo Quintero Illegal. They MUST put in the offer.
    2Reply
  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    @Brandon L. he just said “That's will be difficult or impossible” and the offer hasn’t been submitted yet. So I’ll contact the selling agent directly as per the suggestions in the forum. 

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    @Jodi Paulovich You are confused....a Listing agent must present all written offers received.  In this case there is no offer, a buyer’s agent is not legally  required to Prepare an offer.   You think an agent could be legally required to write up 50 offers at half of list price if the buyer wanted to?

    6Reply
  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    8y

    @Tirzo Quintero honest communication between you and your realtor is important. Ask him to explain his reasoning behind not wanting to submit the offer. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Wayne Brooks:

    @Jodi Paulovich You are confused....a Listing agent must present all written offers received.  In this case there is no offer, a buyer’s agent is not legally  required to Prepare an offer.   You think an agent could be legally required to write up 50 offers at half of list price if the buyer wanted to?

     Touche' Wayne  folks just dont know how the industry works.. and that Agents are all independant contractors they work for themselves and choose what client to work with or not.

    when these " investors" would call my agents and want to shot gun low balls.. I told them not to bother..  those folks need to simply get their own license and write their own contracts..  unless your buyer is  America homes for rent.. or one of the big players..

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    5Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    Simple answer is to fire your agent. No, they don't have to submit your offers if they don't want to. However, why are they your agent if they won't submit your offers? They can bring you a thousand deals, but without submitting your offers, you will buy nothing. Now, like what was said, an agent also needs to protect their reputation and needs to make sure the work is worth the money. But, if the two of you are not on the same page, then you need to part ways. 

    2Reply
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    Most likely the agent doesn't want to do it because he feels like it will be a huge waste of his time and may reflect on his reputation that he is some low ball loser so people wont want to deal with him in the future......and I get that....

    If you have a good relationship and want to keep working with him, just ask.... and let him know how you feel....if nothing else, let him know you understand his side but still want to make the offer and if he doesn't want to do that, its ok...you will find someone that will

    3Reply
  • John Woodrich
    Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    To start off - yes, you are wrong.  You are wrong about the idea of there "being something wrong with the house" and not figuring out what it is.  

    If you gave the realtor this explanation he doesn't think you know what you are doing and that you are wasting his time.  Giving the limited information and your reasoning, I would have to agree.

    Last - the MLS is not usually a good area to search for wholesale deals... Most are sold at retail prices....

    1Reply
  • Chris Purcell
    Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes
    8y
    Originally posted by @Tirzo Quintero:

    HI All,

    I have an issued. There is a house that has been 290 days on the market. This is a multi family 4 beds 2 bath and a a garage, lot size 1742 sqft and it is owned by a bank. The price is 205K. my exit estrategy is to wholesale the deal as the house needs a lot TLC and the ARV is 270K. I can also choose to fix and flip but I don't have experience but willing to take n the challenge. The house has been under contract three times and for some reason haven been sold. I have asked my agent since I haven't since the house to out an offer for 135K. However, my agent don't want to put the offer because it is too low. My thinking is if it has been so long in the market, and haven't been closed in the three times it has been under contract, something must be wrong with the house. Am I wrong? is it really my offer too low? Like Brandon says put an offer you never know... I don't know what to do..

    Get the listing agents number and go directly.  Shouldn’t be that hard.  What’s your loyalty to “your agent”?

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y
    Originally posted by @Steve McGovern:
    @Tirzo Quintero I'm a licensed Broker in Mass and I can tell you that this practice is absolutely illegal here. You could offer to trade the house for a take out menu from a closed Chinese restaurant, and I am OBLIGATED to bring it to the Seller for the Seller's review. I think a simple web search will tell you whether this is similarly illegal in NJ.

    Good luck!

     That is unfortunately not correct. If you are a listing agent you are required to present all offers received unless your client has directed othernwise. A buyers agent is not obligated to work with any and all buyers just because they want to work with that agent. The buyer is free to seek the services of another agent, but an agent is not under a legal obligation to write up an offer for anyone that comes to them.

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  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    @Chris Purcell he’s been nice and willing to work with me so I’ll contact the seller agent and if I get the house under contract will let him know so next time we don’t have this issues. Since some members have said the buyer agent isn’t not abligated to present offers I’ll just contact the seller agent directly and see what happens. 

    0Reply
  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    8y

    Hi Tirzo,

    You said the home is listed at $205k, ARV is $270k, you want to put in an offer at $135k and this is a bank owned property. Look at this from the seller's point of view and if you owned the home. Why would the seller even accept $135k or even take its seriously if they haven't even tested the market at a lower price point? House has not been tested at $185k, not $170k, not $160k, not $150k and you want them to accept $135k. Seriously.

    Now your buyer's agent should explain this to you, the agent should also explain why it should be sold at a higher price. The agent should also let you know the bank owned sellers are not desperate.  They can hold onto the asset forever hence 290 days.  This is not 07-09 when banks needed liquidity.

    You have the right to fire the agent and the agent has the right to fire you.  If you are serious and you are a cash buyer.  Your agent should use this as a learning experience.  Write the offer have it get rejected and then you learn from it and grow.  This is the reality of the situation that I see. 

    6Reply
  • Tirzo Quintero
    OP
    NJ · Member since 2018 · 22 posts · 8 votes
    8y

    @Frank Wong thank you great point. We only learn from experiences and mistakes. I want sure what to do that is why I posted the situation in BP. 

    1Reply
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