Dump my agent?

[Joshua Fletcherr]

BP how goes it?

I'm currently on the prow for my first SFH (long term intentions in mind). I'll be buying in the Wayne/Westland area of Michigan.

According to my agent, as well as a couple of others that I was thinking about working with, this market is a "sellers market". Please listen to this conversation that occurred and let me know whether or not she is fully competent.

Me: "The #1 thing I'm looking for in my purchase is that the home purchase is a bargain. So my plan is to really go in and low ball at first, and then probably meet the seller somewhere in the middle."

Agent: "You have to understand that this is a sellers market. It has been for some time. So if you go in and low ball these properties I can tell you that you're gonna be disappointed. They'll just say no. "

Me: "But aren't they at least likely to counter offer?"

Agent: "No not really because they're all getting multiple offers. They're likely to ignore low balls. I haven't helped sell or purchase on a home that hasn't had multiple offers in 2 years"

Of note: we certainly did not define what a "low ball" is. That is of course something that I'll be seeking clarification on. I have always thought of it as like 10,000 below listing or something of the like.

Please lend me your thoughts. Is she being unreasonable or am I just uneducated? Both? Neither?

Thank you thank you!

[Joel Owens]

The agent is telling you what the market is doing based on their experience.

That doesn't mean if you go off market and look long and hard enough you will not find your deal. That may take you 3 months, 6 months, 1 year and hundreds of offers to get there. On a time cost basis in a heated market that agent would be breaking even or losing money for the time involved.

Investors want a deal. It doesn't matter who your clients are. I am in the commercial realm. Some of my clients have millions in cash to deploy on properties we are evaluating. There is buying a deal and then there is out of touch with reality and market conditions. I have to run an effective business and I can't do that chasing Leprechauns looking for the one in 10,000 four leaf clover.

My clients respect me and trust me to help find them the best value available. If they are unreasonable and not looking at the data for what it is then I can't work with them.

Investors want to make the most money with the best use of their time. So do brokers and agents especially ones that are investors themselves. They can't go on wild goose chases that lead to nowhere. The brokers/agents transacting know up to the hour what things are trading at.

I am not talking about mediocre brokers and agents. You can find those all over the place begging for business. This is especially rampant in residential real estate more so than commercial.

It can't hurt for you to talk to other investors, agents local to you to see if they have properties off market where you could buy and make the numbers work. If you do it yourself you are talking a massive mail campaign and big bucks versus calling to find others leads you might could buy.

I am not trying to discourage in any way I have just been in this business for awhile and many buyers do not understand if a broker/agent doesn't close something they do not generally get paid. So the broker/agent has to weigh time spent with the reality a property can be found and purchased the buyer Is wanting. If the broker/agent feels they will have a very tough time finding such a property then the task becomes a long shot and a loss leader to make money.

I hope it helps.