Opinions?
"We charge a $50 fee to handle offers that are more than 30% below the list price. We have found that offers less than 30% of the list price are rarely ever accepted and this helps offset the amount of work and administrative costs we incur for handling these offers. This doesn't have anything to do with 30% below market offers, just 30% below what the bank or individual is asking for a sale price. For someone to drop their price 30% below what they think they are entitled to just generally doesn't work well.
Also do I need to go through a broker to submit an offer? Can I just fax my offer to the listing agent myself? That would get around that issue of 30% …
From what I’ve seen so far though, the properties on MLS are too nice 
…or offer 29.9% less than list…
Keith
Doesn’t that miss out on the good deals? Or is it a safe bet that if its on MLS thier not going to go below 30%… and I should save the real deals for pre-fore and fsbo etc?
Can I submit offers myself though regardless? Is it just a matter of writing it up and faxing it to the listing agent?
Okay, maybe I missed something somewhere else.
Is the original post something that an agent said to you? If so, then find another agent to submit your offers.
You can deal with the listing agent directly, but why bother? The commission is paid, in full, whether there are one or two agents involved, so might as well get one working for you in the deal.
Food for thought: IF you made 100 offers at $50 each and get one contract for 40-50% of FMV, wouldn’t it be worth $500?
Raj
Agents will scoop up most of the 30% equity deals before you ever see them, in my opinion. You’ll likely only see the ones you “try” out that they nothing about, when you actually float a cash offer for 70% or less of Fair Market Value.
$50 to submit an offer? While I understand the “administrative cost” argument, it’s more likely that the broker/agent wants to eliminate the “rookie” speculators/investors.
I personally would have a little fun with this, since most states require that agents use professionalism and diligence in procuring the highest and best price for their client - the seller (in the seller’s agent case); that does not mean that a buyer’s agent or transactional agent would necessarily be relieved of the responsibility of procuring and submitting an offer of substantial interest.
Then, there’s always the discrimination angel…“I was discriminated against because…”
Chris Michaud
Or is it a safe bet that if its on MLS they’re not going to go below 30%… and I should save the real deals for pre-fore and fsbo etc?
As an Agent–I can tell you making offers 30% below listing price is probably a terrible, terrible waste of your time…especially considering many regions are sellers markets.
If the Listing Agent was knowledeable, and experienced and did a good job initially…they priced the property competitively to slightly over FMV to begin with.
“Can I submit offers myself though regardless? Is it just a matter of writing it up and faxing it to the listing agent?”
I’m going to say this for your own good, and from an agents viewpoint;
The fact that you’re asking a question about making offers 30% below listing price indicates to me…you may not have a great deal of experience (no offense intended).
If you’re inexperienced and submit an offer to the listing agent without representation of your own…be aware…the listing agent’s job is to get the best deal possible for their client. You make a mistake without representation…you could come to regret it, and it will be no one’s fault but your own.
Moreover, Allamigos advice is just plain silly: The listing agent is required to submit all offers…that means they’ll pick up the phone, call their client, and say…‘somebody submitted an offer 30% under list price…do you want to bother responding? Or should I put it through the shredder?’
Moreover, you’ll begin to damage your own credibility & make an unwanted name for yourself amongst Agents if you ‘decide to have some fun.’
Then, there’s always the discrimination angel…“I was discriminated against because…”
Fast track to nowhere.
-Infowell
Isn’t it $5,000? And, that’s too rich for my blood for a pay as I speculate system – a bid of 30% out-of-the-gate below asking isn’t likely to be accepted when the property makes it to the MLS, the asking price will come down in increments. So, that’s like throwing $5,000 in the garbage along with your reputation as a serious investor IMHO.
Banks tend to list their properties with the same handful of agents by region, they see my bids all the time and know I’m within a reasonable amount (for what I feel is a good deal, sometimes I get a counter, or the house, and sometimes I am told to go jump in a lake). I see the same names all the time and I know exactly which ones will return my agent’s phone calls. This is because I know their reputation in the industry as well – it’s a two-way street.
You may want to approach things differently and go after pre-foreclosures and FSBOs.
My two cents 
alot of sellers set up agreements with their listing agents that if an offer is received that is more than a certain percentage (10%, 20%, 30% or whatever) below the asking price and/or if the terms of the offer are patently frivolous, the listing agent does not have to present the offer to the seller.
“Isn’t it $5,000? And, that’s too rich for my blood for a pay as I speculate system – a bid of 30% out-of-the-gate below asking isn’t likely to be accepted when the property makes it to the MLS, the asking price will come down in increments. So, that’s like throwing $5,000 in the garbage along with your reputation as a serious investor IMHO.”
Very good point.
Additionally, I doubt (in my market anyway) that making offers 30% below MLS list price would be fruitful even 1 in 1,000. Homes competitively priced here are selling in a matter of days with multiple offers…often for thousands above list price.
Note: This might be a similar scenario to the one where an unhappy investor was complaining he made 100 offers through real estate agents & NOT ONE was accepted. ???
It’s perplexing how someone can claim to make 100 offers & think it’s SOMEBODY elses fault they’re not accepted. Sooner or later ya gotta wake up & smell the market. It’s NOT the agents…it’s the offer!
“…alot of sellers set up agreements with their listing agents that if an offer is received that is more than a certain percentage (10%, 20%, 30% or whatever) below the asking price and/or if the terms of the offer are patently frivolous, the listing agent does not have to present the offer to the seller.”
Another good point.
If you’re going to troll through MLS looking for deals…then here’s what I’d recommend in this market;
Look for a property underpriced or improperly marketed. The last property I bought that was listed…was marketed poorly (price was competitive to slightly low). The listing agent never got a picture in MLS or a sign in the yard. Five days later we made an offer & were in competition with someone else (we waived the home inspection & made a full price offer…minus our commission. Waving the home inspection [which I don’t recommend for the inexperienced] is what bought us the house).
Sometimes new agents underprice homes…other times agents list out of the area they’re familiar with. It’s like looking for a needle in a haystack & you’ve got to have your financing & everything lined up to move @ light speed, but it’s worth it. Good deals come along often enough to make a tidy profit.
If you want to make offers 30% below market…look for preforeclosures, distressed properties. One way I can tell someone’s having financial trouble is to look at the way they keep their home up. Shoddy roof, unkempt yard in a good neighborhood…something’s going on inside 
-Infowell