Putting in offers on properties- how to do it?

Question

Hoping I can get some help with a question I had come up today.

This will be my first property to make a purchase offer on. It is currently listed on the MLS and I have already been out to see it. I'm not working with an agent as of yet, and saw a significant price drop this morning and want to know the steps I should make to submit an offer on it. Do I call the RE agent it's listed with? How do you typically go about this? I've heard of people submitting offers without going out to look at it and if it's accepted they go look to finalize everything. How do they "submit deals" or "put in offers"?

Thanks!

Jeff B. · Answer

Buying w/o an agent, especially your first offer is IMO BOLD & Gutsy.  There's a lot to know in the offer, counter offer, contingency processes and although the agent will nibble into your profits, for a first timer, I would 'pay for the education' without going to the school of hard knocks.

DON'T let me dissuade however :)  Best wishes

Jeff Greenberg · Answer

Every time you push your comfort level, you will grow.  It is amazing how you can grow by just pushing yourself.

Thomas S. · Answer

If the seller has a agent you do not deal directly with the seller. Go to their agent and they will have you sign paper work acknowledging they are represent you as well as the seller. You can also get your own agent as your team member. This is advisable if you intend to do multiple deals. Your agent will then present your offer to the sellers agent, they will present it to the seller the seller will advise his agent as to his response, the sellers agent will tell your agent and your agent will tell you. It's like passing a secret around a room.

I prefer to work directly with a sellers agent and eliminate one middle man.

John Walker · Answer

Account Closed Keep in mind that in most states(maybe all) using a real estate agent as a buyer is essentially free for you if the property is listed on MLS. The listing agent negotiated the commissions with the sellers and they pay it. That money designated for the buyer side of the commission is going to go to someone whether the listing agent brings the buyer or the buyer is brought by a different agent. What I'm getting at, find an agent for yourself that you feel comfortable with and it's free for you. Best wishes and Good Luck!

Jimmy Cantave · Answer

Account Closed congratulations I hope everything goes well for you

Jeff Greenberg · Answer

Account Closed The proof of funds don't need to be yours.  Most HMLs that I know will provide you with the POF

Account Closed · Answer

@Jeff Greenberg Every step counts!

@John Walker Excellent point. I've seen that the typical seller spends about 6% of the home's value in commission once the property is sold. Would you say that's accurate for the most part?

Account Closed · Answer

@Alex Day I actually haven't made the purchase yet, the showing went well today but now it's just figuring out if the property will work numbers wise based on some different ideas on how the property can be utilized. I use local sites like Craigslist and rent values given to me by RE agents to determine what a fair rental price would be. Working with the selling agent was ok, I certainly would like to have an agent on my team that I work with every time though. I feel like it would make the transaction smoother all around.

@J Beard I completely understand what you're talking about. After speaking with the agent today (listing agent), my conclusion was that this isn't something I'd want to do solo right off the bat. Especially when counter offers are concerned and you're dealing with lenders (the properties that I've been looking at are foreclosures).

@Russell Brazil It's amazing what one full day of experience can do! I see why you'd want to work with an agent at first, if not every time.

Account Closed · Answer

@Jeff Greenberg I completely agree. I even woke up this morning with a little more pep than usual feeling stronger about my ability to get things done. I appreciate your help :)

@Alex Day Thanks! I would think that the process is relatively similar in any state. Some agents may want proof of funding in which case you'd need to provide a bank statement showing the funds in your account if you're financing conventionally. I'm not quite sure how you would go about showing proof of funding from hard money lenders if that was the route you were taking, maybe @Jeff Greenberg or Thomas S. would know more about this??

Account Closed · Answer

Thanks for all the help @Jeff Greenberg and Thomas S.. I ended up just calling the listing agent and the property has an accepted offer on it already. However, I ended up calling another listing agent to place an offer on a similar property. Was quite simple, the agent offered to draw up the purchase agreement and email it to me within minutes. He then called me back and said he was just going to call the credit union who is selling it and I ended up having a counter offer within 5 minutes. I was far more nervous than I should have been that's for sure. I love gaining that experience though!

Putting in offers on properties- how to do it?

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