Agent doesn’t want to “lowball”

Buying & Selling Real Estate
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Agent doesn’t want to “lowball”

Thomas Ingrao
Rental Property Investor · Jamestown, NY · Member since 2020 · 33 posts · 55 votes

So I found a property that has SERIOUS potential. The duplex is owned by an elderly couple, both of which were moved into a home and this is an estate sale. Asking price is $27,900 and assessed value is $19,800. The house will need one new electrical panel, a tub surround, carpets, and paint. Im estimating around $2000 in renovations (I’m an electrician and have a friend who does hvac plumbing so it’s mostly material cost. My real estate agent is being reluctant to make an offer below assessed value and i don’t understand why. The owners already accepted an offer and financing fell through so I’m up to bat but I want this to be my game and I’m just at a cross roads with a non-aggressive agent and me who just wants to get a killer deal. Any opinions? Rent roll after renovations will be about $550/unit, taxes are approximately $800/year. I have a preapproval from the bank and I’m thinking I can get this place for less than $7,000 upfront, out of pocket. Trying to make an offer today, let me hear some opinions!!

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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
5y

@Thomas Ingrao find a new agent, theres plenty out there, key is to find a good one. Nothing wrong with making an "aggressive offer".

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  • Jonathan Crawford
    Member since 2020 · 7 posts · 8 votes
    5y

    @Thomas Ingra

    Nothing wrong with an aggressive offer in my opinion. You just need to be mindful that you may a) come in lower than another offer and miss out, or b) p*ss off the seller so much that even if you come up near asking they’ll tell you to pound sand.

    If it were me I’d make a reasonable offer in the low 20s and go from there. A few extra grand is peanuts in the grand scheme of things. Good luck.

    0Reply
  • David Shifirn
    chicago · Member since 2017 · 10 posts · 3 votes
    5y

    @Jonathan Crawford

    I’m closing on a mixed use building 150 under ask price. Make your offer and spend your money. Seller can always say no thanks. After they sit a while your 18500 offer starts to look good.

    0Reply
  • Snir Maizlik
    Investor · 6844 Bardstown Rd Louisville, KY 40291 · Member since 2020 · 6 posts · 0 votes
    5y

    Change your agent,sound like a good deal, 

    0Reply
  • Fred Cannon
    Rental Property Investor · St Augustine, FL · Member since 2019 · 264 posts · 279 votes
    5y

    @Thomas Ingrao I like to think I am an investor sometimes. . I try to buy one property per year. I don't lowball offers because i find that to go against my beliefs. I also sell a property every year. If I get a lowball offer then I will not entertain that person again Just the way I do business. I don't use an agent. I research the property myself and in I like it I go to the listing agent. They get both ends of the commission and will represent you better. I try to list my properties as FSBO and offer 3% commission to realtors with a 1% bonus if they get asking price. Most will take that. Realtors work for themselves and have a reputation to uphold. Lowball offers are not in their best interest.

    2Reply
  • Varun Batra
    Rental Property Investor · Lethbridge, AB · Member since 2020 · 42 posts · 4 votes
    5y

    @Sean McKee you were working with an agent?? Sellwe also had an agent?

    0Reply
  • Wala Habiby
    Real Estate Agent · Knoxville, TN · Member since 2020 · 79 posts · 29 votes
    5y

    @Thomas Ingrao first thing I tell my investor clients, Don't be afraid to put a low ball offer if thats what you are willing to pay. It blow my mind that your Realtor does not want to do it but if I have to guess I would say he is not an investor specialist and you may want to find another one that understands investment properties instead of a regular residential agent. There is a huge difference.  

    0Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 582 posts · 399 votes
    5y

    @Jordan Moorhead and I have no shame. It takes maybe 10 minutes to write up a PA! 

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    1Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    5y

    @Thomas Ingrao. A good agent would never offer on this deal period it’s a waste of time they’re not going make any money. He/she was letting you down easy.

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    0Reply
  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    5y

    Find a new agent and offer $21 k. 
    in the long run the additional $1000 won’t matter

    0Reply
  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    5y

    Also ,I’m not an agent but  I believe it is a fiduciary responsibility on the agent’s part to present ALL offers.

    0Reply
  • Luciano A.
    Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
    5y

    @Thomas Ingrao

    Didn't read all the posts but if I were you I would dump my current agent. I would call the listing agent directly and ask if they can submit an offer that will not include any buyer agent commission and that your offer includes taking the property as-is with no coming back after you do walk through with contractors. 

    Another opinion is to give them a higher price and then use your inspection period to ask for credits or bring attention to the issues you found and ask the seller if they could help out by reducing cost. 

    If sellers are in a home then I am sure money is not a big issue. Maybe you write a letter to sellers telling them you are just starting out and would love to bring back to life this duplex and would be grateful to them if they help by taking a lower price. 

    But if you are handy then I would jump on the deal. It has been a long time since I have been able to buy properties in the $20k area. 
    Best of luck

    Luciano 

    0Reply
  • Michael Hood
    Baldwinsville, NY · Member since 2015 · 12 posts · 2 votes
    5y

    IMO they won't take 7,000 when they want 27,000. A little aggressive don't you think. What was the last offer for? Any idea...

    0Reply
  • Account Closed
    Real Estate Agent · Tucson, AZ · Member since 2018 · 112 posts · 73 votes
    5y

    @Thomas Ingrao call a couple agents and find one that will make the offer you want or call the listing agent directly.

    0Reply
  • Michelle Fabro
    Chino Hills, CA · Member since 2019 · 6 posts · 2 votes
    5y

    @Thomas Ingrao fingers crossed

    0Reply
  • Thomas Ingrao
    OP
    Rental Property Investor · Jamestown, NY · Member since 2020 · 33 posts · 55 votes
    5y

    @Kristopher Cowen Jamestown, ny

    0Reply
  • Thomas Ingrao
    OP
    Rental Property Investor · Jamestown, NY · Member since 2020 · 33 posts · 55 votes
    5y

    @Avery Carl Jamestown, Ny.

    Take a look 🙂

    0Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    5y

    @Thomas Ingrao what’s the address I’ll give them 40k cash. Wholesale it to me

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    0Reply
  • Jason JamesPro Member
    Rental Property Investor · Hillsboro, OR · Member since 2018 · 117 posts · 64 votes
    5y

    @Thomas Ingrao keep it simple! find another agent, as this will continue to be a problem if you stick with him or her. This will lead to missed opportunities and more frustration.  Also its important to be clear on what you expect of them , and ask what they expect of of you in the initial meeting. 

    0Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    5y

    @Thomas Ingrao find a new agent, it’s YOUR money and YOUR want. I coach my clients where I would recommend to go but at the end of the day, it is my clients choice. Where are you looking?

    0Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    5y

    @Thomas Ingrao. Explain to the agent why you see the value much lower, but don't overwhelm them with numbers.

    i always ask the agent if he is comfortable presenting the offer, no points not asking because if he/ she control the deal and will not have your back, you will not have a chance anyway.

    We see many inexperienced buyers or out-of-state buyers paying too much, not knowing the ARV or the market.

    0Reply
  • Tom Voss
    Member since 2021 · 3 posts · 0 votes
    5y

    Offer $21k with $2k cash back for renovations.

    0Reply
  • Sean McKee
    Rental Property Investor · Chicago, IL · Member since 2017 · 268 posts · 189 votes
    5y

    @Varun Batra. Both myself and seller had agents. Seller had it listed for 90 days and I happened to make offer at the right time. I was definitely surprised it was actually accepted. Sometimes you get lucky.

    1Reply
  • Scott Davis
    Member since 2019 · 30 posts · 9 votes
    5y

    My thoughts on this low end stuff- under 50-100k, and for those true lowballs in general, no reason not to make your offers to the listing agent directly.  Do your research of course, due diligence and run the numbers. If the listing agent won't work with you for some reason make an offer with a different agent at the same brokerage.  Even in a flat fee scenario, the agent will have the chance to maximize their commission this way, and should be willing to work to get the deal to go through.  I read through this whole thread and laughed at all the advice to "get a new agent" ... I don't think those responses noticed the price involved. Plus it sounded to me like the agent involved would have submitted it at 18.5 had you really pressed. But reading between the lines, sounds like agent either A) had additional information that lead to the suggestion of a more likely to get accepted offer. This could be based on informal or formal discussion with the seller or listing agent, knowledge about other competing offers or other interested parties, and the local/comparable real estate market.  or... B) may have been seeing you as an inexperienced buyer who had little understanding of the local real estate market conditions & therefore not likely to make a sale.  This sort of local, specific knowledge and insight is exactly what you're paying an agent for!! and I believe a more experienced investor would be able to have a more in depth discussion with the agent at this point, to understand their reasoning, and then move forward.  Good luck with it, sounds like agent's been earning their commission so I hope they get it for you with your offer around 21.5!

    1Reply
  • Samuel Sorinwa
    Realtor · NJ · Member since 2020 · 9 posts · 2 votes
    5y

    @Steven Wilson

    Well said. But as both RE agent and investor, I will like to know why he won’t? If he is a disclosed dual agency he won’t.

    0Reply
  • Thomas Ingrao
    OP
    Rental Property Investor · Jamestown, NY · Member since 2020 · 33 posts · 55 votes
    5y

    Offer accepted after a counter, they took 23,000 with a 5 day inspection contingency

    2Reply
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