I’ve always followed the advice that you should never be afraid to put in a low offer, the worst they can say is “No.” With that in mind, I put in a low-ball offer on a property and this was the agent’s response.
“If I thought the seller would accept an offer that low, I would have already bought it myself.”
I had to laugh. I guess now there is another option besides yes or no.
Get a buyer agent to submit your offer. your buyer agent works for you and wont make a joke or atleast they’ll joke with you but actually try to get you the property for that price.
A listing agent saying that basically is like saying " quit wasting my time " in otherwords.
I have had some of the same experience or they give their opinion on what price they think will get it sold. 90-95% of listing price :bs then a week later the listing price drops 5-10%
some of the listing agents have no idea what they’re talking about. and guess who probably did the BPO for the property. the same genius who has had the listing on the market for 6 months / 5 price drops. its alot more comfortable going through a property with your buyer agent rather than a listing agent.
My agent actually did submit that offer and contacted me to repeat the quote that the seller’s agent said… and no, he did not give that offer to the seller. It would appear that he is the Keeper of the Offer Gates. He like an Offer Bouncer. If he doesn’t like your offer, you’re not getting past the velvet ropes and into the club.
I increased my offer by a little bit and resubmitted. A few minutes later, my agent called me and the conversation started like this…“Well, he wasn’t angry this time…”
If he/she is a Realtor they have to submit that offer to their sellers. I would probably let him/her know that I will be filing a complaint to their local board of Realtors for acting in a non professional manner. I get sick of these agents thinking they understand REI. 99% of the Realtors I know focus on one thing, SFH, and that’s all they know. The Realtor that I currently have sends me 1-2 multi units/week to look at. Finally I told him last week that the sellers in my area are being ridiculous with their prices, I blame this mostly on uninformed and out of touch Realtors. I sent him a quick email saying something like 50% of gross rents go towards operating expenses a quick screening tool is to take the monthly rents and divide by .02 and he replied that I should re-evaluate that formula for the local market. I asked him how many rental properties he owns he answered “0”.
I would say the fact that you’re offending people with your offers means you’re on the right track. The fact of the matter is that you, us, we, can’t buy at the prices that others are willing to pay. There are idiots out there that are buying up stuff just to buy. You have those people coupled with others who buy knowing they are losing money every month (lawyers, doctors, accountants, etc) but can afford to do so and these things create a market of overpriced properties. I had one of my attorneys ask me recently if all my properties make money. “Of course, I don’t buy them if they don’t,” I replied, and he was shocked. Started telling me a story about a duplex he owns that cost him about $1,000/mth, and this place is fully leased! A perfect example of someone who overspent and so then Realtors pull up comps and see this duplex recently sold for ‘x’ and assume that because their property is also a duplex it should be listed for ‘x’, that line of thinking couldn’t be further from the truth.
Aares, yes. LEO as in Law Enforcement Officer, but as the name suggests I hope not forever.
As for crazy “investors”, I see it mostly from out of state investors (like myself). The come into declining areas and see the asking prices that are tiny compared to their prices back home. They do little negotiating and end up paying far too much and ruining the comps.