Dealing with Realtors

[Brandon Brown]

Wondering what your thoughts are?

I wanted to offer below asking price with seller credit, on a foreclosed home. Semi-unlikely I know, but not impossible. My realtor gives me several contradicting answers/ statements. Rolls her eyes then wishes me luck? Is this acceptable behavior? Am I completely out of line. Or should I say something? Maybe consider a different realtor?

[Marcus Auerbach]

@Brandon Brown granted, you are asking her something she knows with a high degree of certainty is a waste of her time - but instead of attitude, she should give you education and talk to you about what you should be doing.  

Forclosures will in my experience negotiate 5-10% at the most; otherwise wait for the next price reduction, usually every 4 weeks and when you are within 10% of your target price, you can make an offer. Don't expect a closing cost credit on top of that. Also, we are down to 2% forclosures on MLS (from over 40% in the 2010-2012 years) - the REO's that I see in Milwaukee currently are far from being a deal.

Just because it's a forclosure, that does not mean it's a deal.

I have been an investor much longer than I have been an agent; there are very, very few agents that understand investing. In my office I would say 3 out of about 180 and what I always suspected, I know now for a fact: 10% of the agents do 90% of the buisness. And these 10% are usually not working with investors, simply because of skill set and economics. They focus on higher price points residential deals.

About your offer: it comes down to knowing what is realistic. Frankly, I don't even write long shot hail Mary type offers for myself - I usually know up front what my chances are, because I actually pick up the phone and talk to the Seller side. (You would not believe how many times I receive an offer and the agent has never contacted me before - it just shows up in my email, they don't know what is important to the seller; I don't know who the buyer is and why my seller should accept their offer.... it is such a basic thing to do, yet so many don't)

Now, don't get me wrong, I certainly do write offers below asking (for clienst or for myself) when appropriate and there is at least a 50:50 chance. But before I do, I already know the seller has motivation to negotiate, maybe there are special needs or terms the seller favors, we will make sure to meet them and hopefully in exchange for a great price.

Most clients think that all agents are the same and it does not make much of a difference who they work with - nothing could be further from reality. It is well worth your time to find a great agent, it will make everything else so much easier, reduce your risk, safe/make you money and hopefully you have some fun along the way.