Coincidence or shenanigans or neither?

Question

Hi All,

So, I signed up via Redfin to see a potential investment property that had been on the market for 100+ days, and while we were there we talked with the agent at length about the logistics of renting it out, and all agreed it was a solid investment. We didn't commit but she offered to send comps (which arrived about a week later). But, the day after we visited the house, it went Pending. Coincidence? I'm not sure. Now there's another multiunit property we're interested in, but I can't get specs to even determine how many units, so can't apply the various rules of thumb to see if it's worth pursuing. BUT I'm gunshy about asking an agent to show us another potential investment, for fear of it disappearing. Hmm... a few thoughts:

- If the agent did put a bid on the house (or told a friend who did), I'd guess that is legal, and just part of the game. If that's true, just wondering, how often does that happen?

- Or, it's just coincidence. But this was January when presumably the market is slow (except for investors, I hear?)

- So one answer might be that I need to find a reliable agent to work with in the long term -- but because I'm not sure when I'll be ready to pull the trigger (I've been looking at houses for years), I hate to lead an agent on, and instead have relied on the one-night-stand that is Redfin's "show me this property."

What do you think? Am I overthinking this? Should I just call up a broker and ask for an appointment?

Thanks for your advice!

Alison

John Weidner · Answer

@Alison Michel

If it was Homepath an offer was accepted prior to you seeing it and the agent didn't know.   There is no way it would go Pending that quick after you saw it

The turnaround time for the MLS to flip is usually 3-5 business days after offer accepted.

I'm guessing it was on a lockbox?   Don't sweat it, move on.

Scott K. · Answer

@Alison Michel  Well how come it took you 100 days to find this property?  You need to be on properties faster next time.

I try to look at as many houses as I can.  Do it as soon as possible.  Not like a store where you just pull another product of the shelf.

Also why are you looking at properties for years and not buying.  Get in the game, you are costing yourself money

James Wise · Answer

Prolly a coincidence.

I imagine the agent would have already known about the property before you inquired about it as it's been listed for 100+days. I suppose it is possible they never gave that property much thought until you brought it to their attention and they saw how good of a deal it was. Either way you learned a valuable lesson.

No sleeping on it in Real Estate.

Joseph Weisenbloom · Answer

Was the first property you mentioned a short sale? Someone could have been waiting for 100+ days for an offer to be approved by the bank. Or you could just be in a hot market. I know down here properties that may have been sitting around for a while are getting snatched up like gangbusters. I made 4 offers during the month on January all were snatched away from me by investors that were paying above asking price. I cant speak for your area though.

As far as if the realtor is tipping someone else off about the property or buying themselves I find this less likely. If this was a repeated thing then OK I would be suspicious but after one time? I dunno.

BTW appreciate the use of the word shenanigans :)

As far as if the realtor is tipping someone else off about the property or buying themselves I find this less likely. If this was a repeated thing then OK I would be suspicious but after one time? I dunno.

BTW appreciate the use of the word shenanigans :)

Alison Michel · Answer

Thanks @Joseph Weisenbloom , seems to be the consensus for sure. Have to act fast in this line of work!

Joseph Weisenbloom · Answer

@Alison Michel I wouldnt consider myself a veteran quite yet but Im workin on it. I wouldnt get too worked up about it houses get snatched away sometimes thats just the reality of being an investor.

John Weidner · Answer

I just want to add 1 point - the MLS will flip 3-5 days after contract is accepted on a Homepath property NOT conventional.

James Wise · Answer

I see where your coming from. & I agree with some of the things your saying. Especially the part about sticking to your numbers and moving on if they are not accepted. However, for a brand new investor that may not know what the correct numbers are I believe they would be better served with someone looking out for their interests.

Scott Culver · Answer

Finding a property is not the value of an Agent.

Nicole A. · Answer

A buyer's agent doesn't necessarily understand the numbers an investor is looking at because they're used to working with homeowner buyers. Heck, many times I can even find my own personal home better than my buyer's agent. They keep showing me homes that don't have the features I want when I know I can get it in my price range.

If you know that the numbers work and you know the max number you're willing to offer, that's all that matters. The seller's agent wants to make a sale, so if their client is being difficult, a good agent would try to talk sense into them...especially if the property has sat for a while.

Many times a buyer agent will press you to make a "strong" offer so you don't lose the deal even though what they say is stronger would kill the deal. The buyer's agent is out to make sure you buy a property...not a whole lot of them care if it's truly a good deal or if it's your dream home.

I have never used a buyer's agent and I'd still call myself fairly new as I only have my 3rd duplex under contract now. I had my numbers and stuck to them. If they don't accept, they don't accept, and I move on. On my latest offer, it was rejected, and then we came to a deal a month later and now it's under contract.

Coincidence or shenanigans or neither?

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