Updated over 5 years ago on . Most recent reply
Submitting lowball offers without offending the agent.
With the current COVID-19 state of things, I have been running my numbers with low-ball offers (trying 80/20 ARV). When the time comes to submit the offer to a real estate agent, they have strongly discouraged the offer and have even refused to submit it. How do you submit offers on the MLS without upsetting the buyers agent?
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Blake Thompson, I am not sure if some of your wording is wrong, you mention "upsetting the buyers agent", which I assume is your agent and working for you. Agents, at least in Ohio but I assume everywhere, have a duty to submit every offer for or to their client. If you provide an offer to your agent, they are required to submit to seller's agent, who in turn is required to submit to seller.
One way you may be able to offset some of the lowball offer is to go directly to sellers agent. Tell them you want them to submit an offer where you are representing yourself and therefore the seller's agent does not collect both sides of the commission, or at least reduce the overall commission. This helps offset some of your "low-ball" offer, since seller is not out the full 6%, but rather 3%, or maybe 4.5%.
If you are lowballing new listings, I understand where you agent is coming from not wanting (but still required) to submit, just because it is highly unlikely someone will accept an offer at 85% asking if they just put the property on the market. If it has been sitting 2-3 months, then the property is clearly overpriced.