There is a multi-family nearby that I've had my eye on for a while. It's a SFH with two 1/1 units in the back. It's been on the market for over 228 days. I reached out to the agent with a generous Seller Finance offer - above asking price and we would cover the agents commission. He let me know that he didn't "think" the seller would be interested in financing and it hasn't sold because the owner wants full asking price ($330k).
I have a feeling he never even presented my offer. What would you do - would you reach out directly to the seller? And if so, what would you say? I don't want to cross any lines with the agent that I shouldn't be?
“Generous seller financing” is a contradiction in terms. You’re not offering full ask no matter how you try to spin it. If the seller gave instructions to his agent to not present any offers under full asking price, then the agent is obeying the wishes of his principal.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
1y
@Becca Pariser most listing agents discuss seller financing when listing as it’s a field in the listing data sheet - seller financing: none. So the agent can state clearly if seller is offering to finance or not. It’s likely a waste of everyone’s time to request it if seller is not offering it. Agents are required to submit all written offers unless seller has instructed them differently. For my investor-sellers, I ask if they want to sign up front not to send them offers under a certain price or terms like seller financing or open-assignable. That’s not being an “unhelpful agent,” just more efficient.
“Generous seller financing” is a contradiction in terms. You’re not offering full ask no matter how you try to spin it. If the seller gave instructions to his agent to not present any offers under full asking price, then the agent is obeying the wishes of his principal.
@Becca Pariser most listing agents discuss seller financing when listing as it’s a field in the listing data sheet - seller financing: none. So the agent can state clearly if seller is offering to finance or not. It’s likely a waste of everyone’s time to request it if seller is not offering it. Agents are required to submit all written offers unless seller has instructed them differently. For my investor-sellers, I ask if they want to sign up front not to send them offers under a certain price or terms like seller financing or open-assignable. That’s not being an “unhelpful agent,” just more efficient.
Thanks, Lynn! That's really helpful context that I didn't know about.
“Generous seller financing” is a contradiction in terms. You’re not offering full ask no matter how you try to spin it. If the seller gave instructions to his agent to not present any offers under full asking price, then the agent is obeying the wishes of his principal.
Sounds like you can’t afford the property.
I beg to differ - the seller is getting OVER asking price both in the purchase price and the interest accrued. Plus reducing capital gains
“Generous seller financing” is a contradiction in terms. You’re not offering full ask no matter how you try to spin it. If the seller gave instructions to his agent to not present any offers under full asking price, then the agent is obeying the wishes of his principal.
Sounds like you can’t afford the property.
I beg to differ - the seller is getting OVER asking price both in the purchase price and the interest accrued. Plus reducing capital gains
You want the seller to extend multi-year credit for tens of thousands of dollars to someone whom professional lenders won't touch. The interest rate to compensate for that risk is almost certainly greater than the buyer is offering to pay. In addition to joining the seller to the buyer at the hip for several years/decades when the seller wants a clean break, the properly-discounted, risk-weighted, money to be received by the seller is less than the immediate sale price. Take into account the probable opportunity cost to the seller of being unable to deploy the proceeds where he will, and the seller is even further in the hole.
Did you write your offer up and provide financials along with it? Or just verbal?
I wrote it up!
That's good, written offers are always taken more seriously than verbal of course which is why I asked. Did you use a state-approved contract (if applicable in your area)? Did you also include financials/ POF for the down payment/ credit report/ info on yourself such as your experience level operating rentals, to give the seller more peace of mind to lend to you? Did you check public records to see if the seller even owns the property outright (if possible in your area)? Did you include an acceptance deadline? Are you working with a buyers agent? Answers to these will help us help you…
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
1y
At least in Wisconsin, we have to present an offer and get a signature from the seller, even if the seller flat-out rejects the offer. If you don't get a rejection, call the agent's supervising broker, if that doesn't help call the State Realtor Association and file a complaint.