Seller agent is avoiding submitting my offer.

[Nathan Rea]

I submitted a "low ball" offer for a foreclosure in California and received a response from the listing agent that said all offers must be submitted through propoffers.com. I replied letting the listing agent know I am not an agent and cannot get access to that website and asked him politely to submit my offer to the seller/bank. We have emailed back a forth without getting anywhere he just keeps coming up with excuse after excuse to not submit my offer. I am moving on as to not waste too much time on this. I wanted to ask a question about this because as I understand it is that agents have an obligation to submit all offers to their client even if it is low. I offered to provide any and all requested documents (proof of funds, pre-approval, etc). This just seemed fishy and wanted to ask your advice and opinions if this happens again. Thanks all.

[Frank Wong]

Originally posted by @Nathan Rea:

I submitted a "low ball" offer for a foreclosure in California and received a response from the listing agent that said all offers must be submitted through propoffers.com.

I replied letting the listing agent know I am not an agent and cannot get access to that website and asked him politely to submit my offer to the seller/bank. We have emailed back a forth without getting anywhere he just keeps coming up with excuse after excuse to not submit my offer. I am moving on as to not waste too much time on this.

I wanted to ask a question about this because as I understand it is that agents have an obligation to submit all offers to their client even if it is low. I offered to provide any and all requested documents (proof of funds, pre-approval, etc). This just seemed fishy and wanted to ask your advice and opinions if this happens again. Thanks all.

 Hi Nathan,

Pretty much all REO Listing agents will not represent the buyer. They represent the seller which most likely is an asset manager handling all of the bank's properties. You are better off getting a buyer's agent with REO experience to represent you.

Advice on submitting a low-ball offer on an REO. I have closed over 80 REO properties during the crash. I have negotiated some amazing deals for my clients.

1. You need proper representation and you need to back it up with concrete data and comps.   You can't just submit a low-ball offer and see if it sticks.  1 the bank won't accept it and 2 you won't find a good buyer agent to help you.  A great agent will tell you the truth right up front.

2. Days on the market matter. If the property is within the first 25 days unless you are a cash buyer there is rarely any wiggle room. The reason is banks don't need to sell like traditional sellers which have a loan, time constraint, etc. Banks have holding power and can take their sweet time. Even more in today's market.  Even with the changing market banks can take their time. 

3. Gotta have the right lender working for you. REO listing agents need to know this deal will close. They do not want a deal to cancel midway through. Makes them look bad and they do not want to lose this client. The lender needs to close fast and be responsive and help you get your offer accepted.