I know how this sounds but I would like to get some experienced feedback

I know how this sounds but I would like to get some experienced feedback

Paul ZofsakPro Member
Investor · Cypress, TX · Member since 2013 · 118 posts · 15 votes

I have been working with this real estate agent for about a month now looking for my first rental property in the area; a year ago he sold me my primary residence. It seems like every time I send him a list of homes off the MLS that I want to check out he usually tells me that they have accepted offers and are not available. He then proceeds to send me a list of homes that he came across for us to go look at; ironically the homes on his list are about 15-20% higher in price than the ones I suggested. This week, same thing, I sent him a list of homes two days ago, he replied they were no longer available, even though the MLS listing still said they were in active status, and then sent me a list of home that were 20% over what I told him my target price was. Since we are set to go look at homes tomorrow I decided to do a little legwork my self and call the listing agents of the homes on my list. 5 out of 8 were still showing, had offers, but were still accepting offers as well. I then contacted my agent to reconfirm that he was telling me they were unavailable and we should go look at the list he sent. The market is really hot right now in my area and it seems he is always trying to push me on certain sales, the higher priced properties of the ones we look at.
So, my question here is, is there something shady going on, my gut says yes, or is he just trying to not waste my time or his with submitting offers on homes that might already have one? Or, am I overlooking some other reason; thoughts please?

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Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
13y

So a couple of things. When was the last time you sat down with your agent and explained your game plan.? You and the agent may have a different set of goal posts and while your're both playing to win, the goals aren't the same.

Is the agent aware you aren't just looking to be looking and are ready to buy? As an agent, when I know this and I have the buyer's pre-approval letter or bank letter in hand, we have serious conversations and I will pull out all stops to find them the right property.

I present them with homes that they have a no problem making a decision on. Secondly, I don't waste time showing homes that are already under contract, unless the buyer insist on seeing it.

A lot of homes are priced so that buyers get into a bid war, with highest and best offers. I do a lot of work for banks and know this is just a pricing strategy which often involves listing a home for far less than it will ultimately sell.

This also means I don't waste my time with low ball offers on 50 properties a week with investors, hoping one gets in. Some investors think this is what realtors should be doing to make 3% commission on a property that's used up 50% in good will, credibility and the realtors time.

And lastly I do show my clients properties 10-20% over their price. The reason is because I don't expect to make a full price offer. We look at homes with more value and then make our offer based on comparables, condition and just how bad the seller wants to get rid of the property.

For example a home that's been on the market forever may be a bit out of your price, but for a buyer that's fully qualified and ready to close, the seller may take a big discount.

I'm hoping your agent is not being shiesty and has some valid reasons for his actions. But you would be the best judge of that. Oh and one last thing, other agents will cringe when I say this but I never impose on my clients to only see homes with me. They are (of course) free to call the listing agent and use them to close the deal.

I'd rather see someone get the house they want and be happy than my brokerage and credibility come into question. So on that note, maybe you should stop passing up those other listings and just stroll in during an open house. You can always, in that case tell them you're already working with and agent.

Brightest Blessings!

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  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Sounds like your agent doesn't want to "waste" time showing homes that have contracts on them. I don't know if I blame him, but he should disclose this to you.

    Have you looked for off market homes?

  • Real Estate Agent · Owensboro, KY · Member since 2013 · 126 posts · 28 votes
    13y

    Paul Zofsak It sounds like your agent has either forgotten whom his customer is or doesn't care about the needs of his customer. Either way, I'd get a new agent but that's just me.

  • Real Estate Investor · FL · Member since 2011 · 586 posts · 360 votes
    13y

    Paul Zofsak As a broker, I'd be rather upset if one of my agents did this. He might have his reason for saying the properties were no longer available, but he should tell you what those reasons are. Let's say he has good relationships with the listing agents and they tell him the offers are much higher than the list price and to not even waste time with an offer. In a hot market, that's very possible but the your agent should tell you this.

    You could be blunt and just call out the agent, see what kind of response you get. If it's not a very good excuse, I would get a new agent.

  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    13y

    Seems as though your agent isn't investor friendly. That's very important being in this business. Sure they sold you your primary residency (and got paid nicely I'm certained) but from an investors standpoint its not what they are interested in and they've showed that on numerous occasions.

    No disrespect to real estate agents but all aren't interested in finding discounted properties because their fees will be discounted. You need to take the reign and have a professional discussion with your agent as to what you want in a property(or should I state properties because if they do the job well in your favor you will bring them tons of deals to close on...) and what you require of your agent because you can and will take your business elsewhere.

    Time is everything and right now that agent its costing you lead and lost of profit dealing with someone that isn't fully working in your best interest as a real estate investor. If they don't straighten up immediately you'll either continue to lose out wasting time energy and money or you'll find an agent that knows their role and plays it accordingly. What's it going to be?

    Kudos,
    Mary

  • Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    13y

    My advice, get a new agent. No time for emotions because he was the one to sell you your last house and no time to see houses your agent wants to show you. You want to see the houses you want to see, period. You are the client.

    Most agents aren't investor friendly, but.... they do exist.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Paul what are you trying to do with these properties?? I assume since you said you just purchased a primary residence awhile back that these properties will be for either a rehab and flip or hold for a rental.

    Doesn't matter what a property is priced at it matters what it SELLS at.

    If a house is listed at 120k and draws in a ton of offers and closes at 135k but another property is listed at 130k but you get the seller down to 115k then you came out better even though one was priced higher initially.

    It all comes down to who the seller is and their motivation and how many others are bidding on it.

  • Paul ZofsakPro Member
    OP
    Investor · Cypress, TX · Member since 2013 · 118 posts · 15 votes
    13y

    Thanks to all that responded; it may be time for a new agent, information and communication are monumental when it comes to these relationships. Being a chef for the past ten years I have dealt with my fair share of sales people and vendors, those that are good communicators and take care of the client are the ones that I continue to do business with.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    As Joel mentioned, the agent may believe those properties can be had for your price. There are also price breaks where for 5K more you get in a better area, one area may have a 75K place for sale, it could be the better/higher priced on in the hood, at 80K you get the cheapest in better area. One of the main reasons you need an agent is for local knowledge.

    An agent isn't in the same boat as a food vendor.

    I'd say communications goes two ways, but if he isn't listening then that's a problem. Sounds like you have trust issues, so best thing to do is find another agent. :)

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    13y

    If a property has multiple offers on it, he should tell you that, not that it's no longer available. Then again, he's probably had the buyer where when he tells them there is 13 offers on this property the buyer says, okay, we can still make an offer $500 over ask! Just ask him straight up.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    So a couple of things. When was the last time you sat down with your agent and explained your game plan.? You and the agent may have a different set of goal posts and while your're both playing to win, the goals aren't the same.

    Is the agent aware you aren't just looking to be looking and are ready to buy? As an agent, when I know this and I have the buyer's pre-approval letter or bank letter in hand, we have serious conversations and I will pull out all stops to find them the right property.

    I present them with homes that they have a no problem making a decision on. Secondly, I don't waste time showing homes that are already under contract, unless the buyer insist on seeing it.

    A lot of homes are priced so that buyers get into a bid war, with highest and best offers. I do a lot of work for banks and know this is just a pricing strategy which often involves listing a home for far less than it will ultimately sell.

    This also means I don't waste my time with low ball offers on 50 properties a week with investors, hoping one gets in. Some investors think this is what realtors should be doing to make 3% commission on a property that's used up 50% in good will, credibility and the realtors time.

    And lastly I do show my clients properties 10-20% over their price. The reason is because I don't expect to make a full price offer. We look at homes with more value and then make our offer based on comparables, condition and just how bad the seller wants to get rid of the property.

    For example a home that's been on the market forever may be a bit out of your price, but for a buyer that's fully qualified and ready to close, the seller may take a big discount.

    I'm hoping your agent is not being shiesty and has some valid reasons for his actions. But you would be the best judge of that. Oh and one last thing, other agents will cringe when I say this but I never impose on my clients to only see homes with me. They are (of course) free to call the listing agent and use them to close the deal.

    I'd rather see someone get the house they want and be happy than my brokerage and credibility come into question. So on that note, maybe you should stop passing up those other listings and just stroll in during an open house. You can always, in that case tell them you're already working with and agent.

    Brightest Blessings!

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