Hi,
i made a verbal offer to a real estate agent which was $14k less then the advertised price and he said that he would not even consider taking my offer to the owner as its too low. i asked why and he said he had a similar offer a few days ago which he also rejected taking the offer to the owner, He said he feels that the property is a good deal and that the minimum price he would take an offer to the owners was about 9K less than the advertised price, and even then he doesn’t think the owners would accept it. so i raised my offer to be $11k less then the price but still below what he mentioned, and he said very staidly, look if i want to put that offer in writing then i suppose i will take the offer to the owners.Can he do this as i thought Real estate agents had to take all offers to the owners, and not vet them?
Do i have to put my offer in writing?
How do i know that he has definitely taken my offer to the owners, if he comes back and says they refused the offer?Thanks
Missy.Ps. i think this forum is fantastic, i have read a few comments and it has certainly given me more knowledged, but i am still scared by all this, as this is my first time at trying to buy an investment property.
Have a read of Neil Jenmans book “real estate mistakes” very interesting, and this topic comes up several times..
The agent may have boosted the sellers hopes of achieving a higher price, remember, anything is only ‘worth’ what a buyer is prepared to pay for it..
Oh, check out jenmans web-site too, always good for info’
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
yes i think there needs to be some sort of form/record that the vendor has to sign to say that he has seen the offer.otherwise i get the feeling the r/e agent is doing the sly.ask for the r/e principal to oversee this and tell him your situation.
from what i have read all offers must be pasted on…Correct me if I’m wrong but I always thought the Real Estate Agent was obligated to take any offer to the vendor unless the vendor has told them not to bother below a certain price. It might be worth trying to contact the vendor and making them aware of the situation.
Regards,
Mark
[drummer]
Hi
If the figures Don,t add up, then walk away.
Read a book called ‘Confessions of a Real Estate Agent By Terry Ryder.
You will learn all the tricks of the their trade.Regards
Hi Missy,
I would ask the agent for an ‘offer to buy form’ fill all the details out but leave the price to last. I would be very surprised if a written offer isn’t presented.
You may well get the contact details off the offer form (assuming an absentee land owner) and if the agent doesn’t present the offer or it is rejected do not be afraid to contact the owner directly and outline the situation.
You may also spend some time firming up the reason for only offering $14k less so the agent and owner feel less confident about achieving the preferred price.
If all else fails – reaffirm your offer/s – walk out the door – and keep looking – let the principal know you will not be buying off his/her office.
Investing is about finding a good investment not falling in love with a place (OK some affection is allowed)
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
He might think you are fishing and while obligated he might think it’s way to low and too close to the last offer that was rejected.
If you go to through to the owner directly, you might be getting up this agents ‘goat’ (as Kath & Kim so elegantly put it), and he might say that your fishing and you don’t have any real intention to buy the property (and probably place a curse on you and your children – okay j/k, but you get the point). You only want to do this as a last option.
Perhaps to show how serious you are, staple the deposit to a written offer. It will be tough for a Vendor to say no when he can see the money in front of him. Require it to be a cosign cheque and only get one party to sign, tell the agent ythe other party will be avalible to sign immeaditly if the Vendor accepts it.
There are plenty of good deals out there so don’t get to hung up on this deal (this is an important point).
Rgds.
Lucifer_aumissy,
You’ve said you offered 14k less for the property, but it depends on how was being asked in the 1st place. Was it a 200k property? or a 45k property? Think of it in % terms rather than a dollar amount.
The RE is acting for the vendor. We have probably all sold RE in our lifetimes, and we know we wanna get the best price possible. If you want the place, then you might have to pay for it.
I offered full price for a place I bought. Two months later, the price had gone up 27% from a bank valuation. You can walk away as others have mentioned, or you can decide if you want to pay a price that is more in tune with what the vendor is considering.
The approach of telling a RE you will never deal with him/her again… well, that is one that I would never take. If you want to keep buying in the area, it doesn’t hurt to build relationships. It’s good to be taken seriously. Unless the RE is depserate, I doubt you taking your business elsewhere will bother them too much. But it might cost you later when you see another deal you want to buy.
kay henry
HI MY NAME IS TERRY,AND I’M NEW,I BELIEVE YOUR JOB IS GETTING A DEAL,AND IF THE RENT DOES NOT GIVE YOU A POSITIVE CASHFLOW IN PROPORTION TO WHAT YOU SPEND,ASK THE AGENT IF BY DOING MINOR JOBS IN THE HOUSE WOULD IT REACH A BETTER RENT.DONT FORGET THE AGENT WORKS FOR THE OWNER.
terry grisanti
you have to look at it from the owners point of view too. what would you do if your agent kept bringing you offers of $14k less of what you’re asking when you keep denying them. i’ve known ppl who have been in a similar situation and it gets very annoying.
don’t believe the lies, find your own truth
What state are you in.
Most states ( you can check the acts on the gov sites) require the ” Agent to take all writen offers to the Principle”. the is a basic requirment of law.The principle being the Vendor. if the agent does not do it ring up consumer affairs and dob them in.
It is illegal for the agent to make the assumption that the vendor does not want that price. If a house is for sale by private treaty this is for sale by negotiation.
you can call your local consumer affairs or get a list of the “real estate agents act and the sale of land act” via the govt website. If you are an investor you should know these acts back to front.
aluminati
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