Is there a way to find out if your offer, has been placed???

Question

I was wondering how you would really know, if an offer has been submitted. About 5 mths ago I had looked at a property listed at 29000 it needed a lot of work. But the comps in area would of been well worth the work, I called my realtor and told him I would like to put an offer in for 10000. Just recently this property has been reduced to 17995, I have never received a counter offer, so when you low ball on a property, how do you know the realtor isn't saying in his mind they will never accept, or I'm not going to waste my time. Is there any way to confirm that your offer has been submitted.

Jerry Kisasonak · Answer

It has been my understanding that an agent has to present all offers regardless of what the agent thinks of the offer. In terms of the agent and his/her relationship with you, they should have told you upfront that they wouldn't submit an offer that low and they should have allowed and even encouraged you to seek representation from another agent if you wanted to.

One thing smart REO brokers are doing now is stating in the listing (under Agent Remarks in our MLS system) that "No offers below list price will be accepted." This keeps everyone from wasting large amounts of time submitting offers that have no possibility of getting accepted. It's a clear-cut, no BS take it or leave it situation, which I happen to like.

On another note, you might want to try marketing for deals or reaching out to FSBO's. No offense to realtors, but you eliminate some level of aggravation and difficulty if you start working directly with sellers. We frequently find sellers who love to do business with home buyers like us (at a discount of course) because they just don't want the hassle of dealing with agents, having the property sit on the market, etc. Their words are usually: We just want to sell it and be done with it. Well, it just so happens we just want to buy it!

Jennifer Lee · Answer

Hi

You need to ask the Realtor. Also is this a bank or retail?

Either way your Realtor should have updated.

I am investor/Realtor in Pittsburgh. I put low ball offers for my clients but always get a reject from the other agent.

Even with bank. They do fish for higher offer. I had an offer in and 3 wks later they reduced price to my clients first offer. And then 3 wks later asked for highest and best. and we lost. Even though we offered first...

Wayne Brooks · Answer

Most of my sellers will tell me up front they don't want to see or deal with any offers under a certain amount.  So, do I necessarily send them offers for $90k on a $150k listing?  You figure it out.  And the by the way, it's the Seller who has the rights to have all offers submitted, not the guy making the low ball offers.

Daniel Mohnkern · Answer

I'm glad you asked this question.  I have had the same problem.  I had my agent submit to the listing agent and got the answer "no" back within 3 minutes.  That told me that someone most likely didn't even talk to the seller.  I then contacted the listing agent to see if my agent submitted it to her.  She said "yes, and the seller won't go for it."  I asked if she actually submitted it to the seller and she said she did, but I could tell she was lying.  So, I went to the property that happened to be occupied and I spoke to the tenants who knew the seller and where he lived.  After talking to him personally, I found out that I was right and his agent never discussed it with him.  I should have reported the agent but I didn't know who to report her to.

I imagine going around the agent directly to sellers (when possible) will get agents pretty mad at you.  I suppose we have to balance the desire to get along with agents with the desire to actually get offers to the sellers.  It's my desire to have agents WANT to do business with me for the amount of business I can bring them rather than the amount of commission on one deal.  I think I would go to a listing agent and make a relationship first.  I would make sure they understood that I will have a LOT of business to shoot their way in the future, so they should be willing to work with low-ball offers in order to maintain my business with them so I won't avoid helping them make money.

Also, is it illegal to offer listing agents a bonus which would replace the commission?

And, what about telling the listing agent that, if things go well with your offers, you will also use them to list your properties after you fix them up?  This could make them double the money as well.

Chris Harkins · Answer

I have found here in the Memphis area that a lot of times with lower priced properties that are more often bought by investors, especially stuff that is dished out by Fannie & Freddie (pre-online submittal) there are certain agents that would take the offer in from another agent, but never show it to the client.  They tend to have their own list of investors they shop these properties out to directly, allowing them to make a double commission if one of their investors picks it up, instead of a split commission with another agent.

I know this because I submit my own offers being a broker on stuff I was interested in.. A few years ago, I was trying to pick up a couple cheap properties to rehab and hold, but after I wrote the offer and sent it over to the other agent, I wouldn't hear back from the other agent or asset manager, while the property would sit on the listings for 90 days, a price drop, etc.  and then would just get the run around any time I tried to follow up with them.

With Fannie and Freddie now, there are online submitting tools so you can request a print out from your agent showing that it has been processed in the system essentially bypassing the other agent and getting the offer straight to the asset manager.

However, other than that.. there really isn't a way to verify other than just seeing if you can get the agent to screen shot you proof that the offer was sent over via email.  If you feel like there is any thing funny or unethical going on, REPORT IT to the local real estate board they are with so they can investigate it.  Agents are REQUIRED to submit all offers to the owners.

Hope that helps!

Nicholas Miller · Answer

Did you sign an offer or did your offer just submit a verbal?  If you never filled out the paperwork I would say your realtor probably didnt submit the offer...  The only outlier would be if the offer requires an initial online offer before any paperwork (i.e. hud).

Another way to check is to call the listing agent and ask if the offer had ever been submitted.

If you are going to low ball it is often best to use the listing broker.  I have my license and I work for an agency but I have emailed other realtors offers telling them I want them to represent me.  I figure a double commission will make them as motivated as I can make them.

Andy Ballester · Answer

Thanks for all the response, By some of the responses I know I wasn't, to clear on some of the issues this is a bank foreclosure, I have low balled before verbally and i trust that they were submitted, because I would always receive a counter offer. I do not believe the offer would of been accepted, but I wanted to feel them out to know where they really stood on the property, with that being said my current interest is on another property but I just wanted this not to be a reoccurring issue with other offers being that this property is still on the market.

Wayne Brooks · Answer

The listing agent has a relationship with, and duty to, the seller.  The listing agent has no relationship with, or obligation to, buyers making offers thru other agents.

Daniel Mohnkern · Answer

That's an interesting way to look at it.  I always thought it was the right of both parties.  I can understand your point though if the seller has already told his agent what he does not want to see.  In a sense, the seller already said no to the offer.

Jennifer Lee · Answer

hi @Andy Ballester

To add to above posts. I agree with @Jerry Kisasonak  and @Nicholas Miller .

One of the biggest reason I got my license was because my agent who dealt with multi million dollar homes and is a top agent just didn't get investors. She wasn't motivated to find me stuff. Or know how to do Arv comps.

And now when I'm a realtor, investor/Realtor or truly investor friendly Realtors are a rare breed, but we are around ;)

Is there a way to find out if your offer, has been placed???

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