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..
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!
Rental Property Investor · Green River, WY · Member since 2017 · 2 posts · 15 votes
8y
@Tirzo Quintero I would find another agent right away. This person is supposed to be YOUR agent. It sounds like he/she has the interests of the seller in mind.
Time and time again on threads like this people all in mass the replies always say find a new agent. That could very well be the solution, you might just have the wrong agent. But then I see people going through 10 agents, and still people are telling them find another agent.
How many people on here surround themselves with people telling them what they want to hear, and then never get started because no one ever gave them realistic expectations for the market. What good is it for you to surround yourself with people who tell you what you want to hear for you to continue to fail.
Weekly, people on here and in the market tell me and Mike Cumbie or James Wise we dont know what we are talking about because we are agents who dont waste our time with people we view as not serious about doing deals since they dont heed our advice about how to go at the market. These are people who are novices telling veteran experts doing a ton of deals and working with people doing a ton of deals that we are wrong because they read some book or went to some seminar filled with some idiot promising 50% returns.
Could you have the wrong agent? Absolutely. Most of them out there are simply not good, or dont operare in the space you are looking at. But its also entirely possible that maybe you are working with a great agent who is an expert at investing, and you simply cant handle the reality of the market, and cant handle when they tell you the truth instead of wasting everyones time telling you what you want to hear. I fire about a client a month and pass on 2 to 4 clients a month, usually those from BP who cant approach the market with realistic expectations.
Its very important to pick the right agent...but if someone is the right agent, its very important to heed the advice and guidance they give or you will just spin your wheels and never get started.
Well said Russ.
What is often missed is the amount of money people working for you are making. Myself I employ over 60 people. If I don't pay them competitively they quit. Simple as that. This is a concept most everyone understands until we get into the real estate space, then everyone forgets about how much money the people that are working for them are making or want to make. They think that Realtors are Applebees servers and will say yes to every request or something. This is a commission only business. The answer isn't always yes.
If as a buyer you want an agent to run around doing this or that. Sending offers all over town pay attention to how much they are making. If they are putting in hours for small commissions their hourly wage may be very low. There are only 2 kinds of agents who work for a low hourly wage.
1. Brand new agents who've got no idea what they are doing or haven't built up their business.
2. Bad agents. Agents who just aren't very good at being agents.
If working with an unqualified agent is fine for your business plan that's cool but don't get upset when the turn rate is 90% and you've got to find a new agent every two weeks.
If as an investor you are looking to hire a a top of the line agent you better expect to pay them a top of the line wage. At this point in my career I only work with sellers and buyers who want to buy my listings. Assisting buyers in shopping the MLS is a low dollar per hour activity. Unless a buyer is interested in buying one of my listings I won't talk to them unless they pay me an up front fee to make up for the low dollar per hour work that they want me to do. I can do this because the market has proven that my skill set demands this type of money.
So in summary, in real estate or any other business you get what you pay for. If you want to pay a discounted wage you'll get a discounted service. If you want a high quality service you'll be paying a hefty price tag for it.
Realtor · Torrance, CA · Member since 2018 · 16 posts · 6 votes
8y
@Tirzo Quintero It sounds like the agent is just setting expectations instead of refusing to do something. Just say “yeah I know it’s low but let’s see where it takes us.” I wouldn’t quit on your agent yet unless you are totally clear on his position, as he is with yours. Communication is key.
Wholesaler · Vineland, NJ · Member since 2018 · 23 posts · 3 votes
8y
@Tirzo Quintero It’s illegal. I’ve put in plenty of low offers before for buyers. It is what it is.
I understand the agent but he should not treat you as such. ALL offers must be presented.
What part of Jersey if you don’t mind me asking?
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
8y
@Tirzo Quintero Get preapproved. Put together a list of repairs and costs to make the repairs with a 20% GC cost, holding costs, buffer for unforeseen issues like termites or mold or slab or whatever, and profit. Get the standard offer form/contract and present the package to either your realtor or the listing realtor. show you are doing more than throwing out a number.
Investor · White Haven PA · Member since 2014 · 363 posts · 221 votes
8y
A few points.. The agent doesn't seem to have refused to present or write up the offer. He was only said it's unlikely or impossible for it to get accepted. Therefore, the posts claiming this is illegal is simply wrong.
In your position, I would thank your agent for his assessment or your offer price and let him know that you fully expect a counter offer and would like to submit this as a starting point. Also, if you like the agent and don't want to end your relationship with him ask if he can prepare a short one page letter of intent on the property and present that to the listing agent. This will save the agent the time of preparing an entire contract. Most agents will agree to do this as it only takes a few minutes as opposed to the hour + a contract takes to draw up. Have them save the template for your L.O.I. and on your next property it will be a breeze to fill out and submit.
If he still refuses to draft an offer for you, post here on B.P. for an "investor friendly" agent that will submit multiple low offer on properties for you.. You will get new/desperate agents that will do this for you though you will be not be getting the advice and knowledge of more experienced agents that value their time too much to work with low-balling buyers.
Real Estate Agent · Wichita, KS · Member since 2018 · 37 posts · 31 votes
8y
@Tirzo Quintero A low offer should be expected on this deal, considering the time it has been on the market and that the bank owns it. It is a huge advantage to you that the bank owns it because banks do not have an emotionally attachment to the property, they will look at your offer as a business transaction. They do not want to keep houses in their books so you should not hesitate when making a low offer, they will not be offended by it. You mentioned a possible wholesale or flip and I know in my market multifamily properties tend to take longer to sell. When analyzing this deal, try to keep in mind that you may have higher holding costs. I would suggest analyzing this deal as a long term rental and making sure it cash flows, just to be safe if you are unable to sell it.
New to Real Estate · Philadelphia, PA · Member since 2017 · 5 posts · 4 votes
8y
@Tirzo Quintero, Thank you for sharing your situation and a thanks to those that have offered useful suggestions. I am learning and am grateful for everyone's involvement.
Real Estate Agent · Northeast Ohio · Member since 2018 · 35 posts · 15 votes
8y
@Tirzo Quintero I think the answer is pretty simple. Agents bring the facts, you make the decision, agents present the offer. Sometimes agents can get carried away and give their personal opinions (mostly because clients ask for them) but when you think personal opinions are getting in the way, check your agent and remind them (nicely of course), they bring the facts and you bring the decisions.
PS... every industry has bad apples, but don’t let that prevent you from eating apples :) !!
Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
7y
Just do it yourself. And let us know how it comes out.
And it's not illegal to refuse to write an offer for someone. As a realtor you can choose who you want to work with or not. The buyer can also write their own offers or bring another agent.
Investor · Kirkland, WA · Member since 2017 · 310 posts · 271 votes
7y
"Illegal" to refuse to write an offer? I don't know, unethical maybe? What I do know is any agent under contract has a fiduciary duty to their principle. Laws differ state to state but generally that includes an absolute duty to fidelity, loyalty, accounting and other aspects. So a flat refusal to write an offer would in my opinion require an agent to resign, as an agent is supposed to act as directed by their principle if that direction is not an illegal act.
Same would hold for an attorney you hire, they can't take a retainer from you to defend you in court and then keep it and refuse to defend you in court because they just don't feel like it. They can refuse for many reasons, but then they have to resign and refund your money. You're not hostage to your agent, that's not how any of this works.
If the agent doesn't like the price you are considering then ask them to draw up the offer with the price blank because you need to review it with your partner or spouse or banker, then fill it in by hand and send it back later, or just find a new agent. It's your offer, the agent is a facilitator. They can choose to or not, and you can choose to use them then, or not. No big deal, it's just business.