what would you do? go over the realtors head or not?

Question

Not sure if this should be in buying real estate or in the deal section but here goes.

So I've been tracking a property for about 6 months now (maybe a little longer). I talked to the realtor of the property about 3 months ago getting some info (Ie would sellers be open to owner finance and they said maybe and details about the prop). Well that that time I passed on the property to go after other leads.

Now 3 months later I see the property is still on the market, So I call the realtor ask if the Owners are still open to owner finance and she says maybe again. I ask a few more questions and find out the property is having problems selling with conventional lending cause of insurance issues. (it's a detached dbl..insurance wants to write 2 different policies bank wants one policy for both props since its one morg. ) So I tell the realtor I'll send over a state contract with an owner finance offer....she says just email me what you want and i'll run it by the owners before we do a formal offer. I agreed and sent the email....well it's been about a week or 2 and I called and asked the realtor what the owners thought about the offer. The realtor said they weren't interested and didn't have a very convincing response (I doubt the realtor told them about my offer.)

So to the biggerpockets community...would you mail the out of town owners of the property with a general letter saying your interested in buying the property or just move one and write that realtor off from your list? Or do you have other suggestions?

J Scott · Answer

Lots of good advice above, and personally, I think any of those ideas will get you the information you need...

That said, in my state, any written offer must be presented to the sellers, regardless of whether it's on a state contract or not. I don't believe that includes an email of an offer. So, I would start by writing a formal offer on paper, either on a standard state contract (if you have one) or on another reasonable contract template.

Next, tell the listing agent you like to view the home, and ask to set up a time to meet there. You can't force the sellers to be present, and most listing agents will go out of their way not to let the sellers be present during a showing. You can request it, but don't expect it to happen.

At the showing, present your offer to the listing agent and let him/her know that you'd like either a written acceptance or rejection of the offer. I don't believe the agent is required to get a written rejection (I could be wrong, don't really know), but that should send the message that you're not going to give up without some indication that the offer was at least presented.

Also, I would make sure that you address the issue of the agent's commission. While this isn't technically your issue (the seller pays the commission), if it's an owner finance deal, the agent may be concerned that there won't be enough cash available to get paid, and that could be hindering his/her earnest attempt to get your offer accepted.

Btw, if the listing agent refuses show you the property, get your own buyer's agent. This may be a good idea anyhow, though be prepared to pay the commission if the seller doesn't have the cash in an owner financed deal.

Bill Gulley · Answer

The only way to know if an offer was actually presented is with a signature on a declined offer. Never make a lower offer or one with special provisions by phone or email to let a Realtor "run it by". They usually won't and simply tell you they did, especially if they think they can do better.

And I agree with Rob, make your presentation with the listing agent and the seller, either have it prepared or make it in writing then and there. If the listing agent doesn't like it, they will object or talk it down if they do it alone, so being there, at least you have a chance of getting a response by the seller. Good luck...

Rob Gillespie · Answer

Mickey,
If you are wiling to go to the home, meet the real estate agent there to view the property. While you are there with the sellers, make a good impression and tell them you would like to present an offer and make the agent write it on the spot and you want to hand it to the sellers with the agent once it is written.
By law they need to allow that.
I would not go around the agent at this point though. Just move on if the deal becomes too much of a pain.

Good Luck!

Joel Owens · Answer

It could also be that you have a junk offer for them and the sellers even though they haven't sold do not want your proposal.

You can't force a seller to sign a rejection letter at least not in my state.The offer would simply expire without the seller accepting it unless there was not an expire date in the contract.

Usually you want an expiration date to make a seller or buyer perform and move to action on a property.Just like with coupons expiring if you want the deal you have to act or wait for the next deal.

With your owner finance do you have proof of funds to show,were you going to set up a 6 month reserve account for the property that is designated to pay the (owner finance) in advance??

Are you putting down a size able non-refundable down payment??

If you have a junk offer with junk terms it's better many times to reduce the price a little and try to do a regular deal.With owner finance the seller still has to worry about the property,that you will file BK,that your LLC will file BK,that you will leave the property in worse shape then when they sold it to you,and a whole host of other scenarious like that.

Mickey Harrison · Answer

Thanks for the responses. I think I'm going to write up a formal offer and give it to the realtor to push a more formal response. If from there things don't get moving I'll continue to track the property and move one. Once i see the property has been pulled from the mls I'll then send a letter to the owners.

Karen Margrave · Answer

Mickey Harrison I agree with Bill on this one. Write up a formal offer. The question is why wouldn't you just have the agent representing the property write the offer? She would be the logical choice, as it's in her best interest to write an offer acceptable to the sellers, and would be more motivated to push your offer. If you try that, and she refuses to write the offer you want to make, have someone else write the offer for you, and insist that they go with the listing agent to present the offer.

Lynn McGeein · Answer

If I had the owners' address and thought the realtor was actually not presenting my offer, I'd mail them a letter along the lines of, While your realtor informed me you are not interested in my offer of ..., I wanted you to have my contact info in case you become interested down the road. That way, if their realtor really didn't pass it on to them, they'll know. Another alternative would be to get yourself a buyer agent for this one specific property and have them submit a formal, written offer with a deposit, not just an e-mail with an outline. I believe real estate agents are bound to submit formal offers to all their clients.

Uwe S. · Answer

Hello Mickey,
If you had contact with the same realtor of this propertie 6 month ago, then my answer is No you cannot go to the owner directly now.
The owner can inform the realtor with your query and the realtor will find out you had contact with him and you get nothing then. Try to push your request with the realtor and you will get an reply from owner soon I guess.

-Uwe

what would you do? go over the realtors head or not?

what would you do? go over the realtors head or not?

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