First offer today

Well it took me 3 weeks to convince the agent that no one was going to buy this house in the shape it was in so we are putting an offer on it this morning. The home owner wants out @ 120 the house next to him same floor plan sold 4 weeks ago for 185 so there is a ton of room on this deal. Wish me luck and i wish you all a merry christmass.

Good Luck, CG!

Why was an agent balking? It’s their job/responsibility to present all written offers unless they have specific directions from the owner not to even bring offers below a certain theshold.

Keith

Great deal CarpetGuy. Remember offer what you need to get the house for and if you get beat out, then that guy overpaid and you don’t want to go down that road. I have had agents try to pressure me to raise my offer also. I confuse them. I tell them how the property makes money (or not) it puts them to sleep and they just put the offer through.

realtor’s are annoying…that’s why i’m getting my realtor’s license!

:smiley:

Does that mean you’re annoying? j/k :wink:

CONGRATULATIONS and GOOD LUCK!

So what’s the word??? Did they accept the offer??

Rich, i can be “a little” annoying! ;D

i just want it for two 4 main reasons:

  1. i know i can make A LOT OF MONEY doing it.

  2. i want to work on my salesmanship skills.

  3. when our companies invest and end up selling properties, i want to make sure we receive commissions.

  4. i want to expand my network

what should i expect from Century 21 (that’s who i’m going to work under - part time)?

Well as with many companies they are purely franchise and offices vary widely. My mother worked for 2 different C21 offices and they were like night and day, one she like and one she hated.

3. when our companies invest and end up selling properties, i want to make sure we receive commissions.
How will that work if the investment property is owned by another entity? Also, going along that same route, would the standard owner/agent disclosure have to take place since the owner is actually a separate entity?

I wish you the best. I got my license too and am taking the plunge after the holidays.
Here’s why I got mine.

  1. Get first hand experience in buying and selling.
  2. Get first look at new listings.
  3. Learn the art of negotiation.
  4. Maybe- just maybe sell a house or two for some extra change.
  5. Learn who the players are (network, network, network)

I live in a pretty small town (but booming) and thought it would be a great way to get a feel from the inside

How will that work if the investment property is owned by another entity? Also, going along that same route, would the standard owner/agent disclosure have to take place since the owner is actually a separate entity?

i’ll make the commission. the company won’t, but i will. and i’m not sure about the owner/agent disclosure - anyone else?

Does your broker require a minimum commission? If so, your company would have to pay you for either representing the company in a purchase and sale correct? Then you’d have to split that with the broker (50-50 I believe), so on some deals, you might just break even or lose money.

Example:

Both a buyer’s and seller’s agent spliting a 6% commission. Both the buyer and seller are spliting it 3% and 3%. Your company (the buyer) will be giving you 1.5% and the broker 1.5%. But since the total 3% came from your pocket, you lose 1.5%.

I’m really not sure how brokerages work. I hate working with agents (they’re annoying) and avoid it whenever I can. Maybe I’m way off here, but is this example plausible?

I’m not positive, but I believe some of those big guys only start people off with a 50/50 split.

You can do better at a RE/Max up to 90% or even 100% spilt if you pay fees. Not worth it if you don’t have enough deals per year though and especially if you’re part time. Other places to consider would be Keller Williams, they start at 70/30. Or try an independant, they can also be pretty good with splits.

On your own property, you might be able to get the broker to go up to 90/10 split. Or if you’re listing your own property, the broker only gets 10%.

Anyway, just some splits I’ve heard of, they can really vary so shop around once you get your license.

As for disclosure, if you own the company and the company owns the property, you may have to disclose. It’s better to disclose than not to, you could be sued for not disclosing and losing more than your commission while disclosing doesn’t really cost you anything.

Oh, and Realtors are members of the National Association of Realtors. Real Estate agents are licensed by the state. Not all real estate agents/salespersons are Realtors, but I do believe all Realtors are licensed real estate agents. Sorry, didn’t mean to be too annoying with that one…
:wink: :wink:

I doknow what happened to this post but on with the offer, the broker would not pitch the client on the offer. I offered a 12 month option on the property where we go and rehab the property and giving the home owner 10% of the profit. The broker said i was a carlton sheets wanna be and his clients would never go for that. And i said the the h&** is the difference it has been on the market for 19months and they droped 45k already. He said bring all cash and nothing less. So i ask this is your broker doing all they can???

Did you present the offer in writing?

Did you have an option of going with the “broker” to present the offer?

Sometimes, if you go with the broker/agent to present the offer, they will be less negative about the offer when they present it to the owner and you can ‘spin’ the offer positively…

Keith

CarpetGuy,

So you found out the hard way the most brokers and agents used to be flower children… What I’d do in this situation is to go around the agent, straight to the owner. Hopefully this would insult the agent in the process. If it’s been listed with the same agent for the full 19 months, I’d also try to convince the owner they have a lousy agent (they probably do) and to let the current one go, in a very subtle way. Make sure they aren’t related or friends first.

Your offer seems very generous to me for a property that’s been on the market for 19 months. The broker is the wobbly bridge standing between you and the seller, put a few satchel charges on that bridge, watch it disappear, and go around it.

carpet -

i didn’t read the entire thread so if i’m off on this, i apologize.

have you considered just using a buyers agent to submit your offer?

this way, your agent will make sure that your offer is at least presented to seller.

also, if you request a meeting with the seller, with BOTH AGENTS, YOURS AND SELLER’S present, that this is entirely acceptable. i’m sure the seller WANTS TO SELL!

i’d think using a buyers agent might be a good viable option - if you’ve made a contact or two with a decent agent…this is also important.

THIS IS IMPORTANT - find an agent who is CONFIDENT and COMFORTABLE in their own skin. you’ll find that many realtors like to “fit in” with their cronies and don’t like to “rock the boat” so to speak. they’ll talk to you as if they’re on your side, but when they speak to the other broker, they’re all buddy-buddy - talking about HOW MUCH OF A PAIN you are!!!

watch out for this. it’s all about psychology. people like to fit in because it’s comforting to them. people avoid discomfort. you don’t want this type of realtor. trust me. they will waste your time and LOSE YOU MONEY!!!

you may consider having your realtor call the other realtor WHILE YOU’RE PRESENT! see how they talk and communicate. if they’re uncomfortable with this or look to make excuses why they must call from their office, drop’em. that’s a sure fire sign that they are a cronie and are not confident to GET THE DEAL DONE!!!

also, does the sellers agent of you make sense at all? are you a “newb”? are you sure you’re not asking questions or making statements that present you as if you’re totally green to investing. this might be part of the problem. look at the WHOLE situation objectively.

carpet also - that deal will sound “risky” to most people. also this deal might violate sellers current mortgage contract.

you need information. consider getting an agent to rep you and ask for a meeting of the minds with the seller.

be professional with the sellers agent - don’t rub’em wrong. that will just make things more difficult for you…if you really want this deal to happen.

your other option is to just walk - but still, don’t burn the bridge.

your other option is to just walk - but still, don't burn the bridge.
Never burn bridges, blow them up! That agent intentionally insulted and embarassed you. If you'd ever consider working with them in the future, your crazy. Agents and brokers are a dime a dozen, there's atleast 2 for every insect in the world. Some are better than others but none are spectacular. They are the middle-(wo)man that are easy to surpass. I've never kept using the same buyer's agent for longer than a year. They always lose their steam because they are looking in the wrong places to find me deals and don't seem to understand, the only thing I care about are the numbers.
THIS IS IMPORTANT - find an agent who is CONFIDENT and COMFORTABLE in their own skin. you'll find that many realtors like to "fit in" with their cronies and don't like to "rock the boat" so to speak. they'll talk to you as if they're on your side, but when they speak to the other broker, they're all buddy-buddy - talking about HOW MUCH OF A PAIN you are!!!!!
I agree with that 100%. It's impossible to know what kind of agent your working with, unless you tap their telephone.

TM, your just sticking up for agents because your about to be one!