Real estate agent required to ask a question to the seller?

Question

I found a 6 plex for sale. In order to come up with a big enough down payment for the bank-I asked my realtor to ask the seller's realtor if they would consider owner financing part of the down payment. (about $100k). We would refinance within a few years.

About 10 days ago I asked our realtor to ask the seller's realtor if they would consider owner financing $100k of the price. TODAY I get a text from her saying the seller's agent won't ask the seller until we have approval from the bank that they will accept that! Am I totally off base to be upset about this? Isn't  it the agent's job to present these type of questions to the seller?

I have talked to the bank about this before-but not this particular property.

Mike Cumbie · Answer

Hi @Maria Vogel,

I'm not a commercial agent but I will say generally, I want things in writing first before I give them to my seller. I want an actual offer to present. X amount of dollars with X amount owner financed over X years payable in X years.

That is an offer I can present (not a hypothetical purchase scenario). Verbal offers and conditions are difficult without something written down. for instance I ask my sellers to refer anyone to me who pulls up and asks questions. At most give them the asking price (say $100,000). The savy negotiator then says well do you think you would take 93,000?

If the homeowner says "yeah I might" guess where the offer comes in .......(87K). The owner did it to themselves by getting into verbal passing conversations.

My job as an agent is to get them the best price I can for a property and getting you to submit an actual offer is the best way to do it. If I verbally told you yes they might then you are not going to go out and get your best offer together. When you have to put it in writing it is an offer not a "wish".

Just my thoughts and good luck!

Daniel Chang · Answer

Yes, the RE agent can refuse to ask a question to the seller.  The RE agent has some discretion to screen out lookee-loos.  In this case, it seems the RE agent has deemed your situation too unlikely to close to pursue.  If you can get a lender to agree, now the deal becomes more viable.

Usually the RE agent will comply with questions from a serious buyer in order to close the deal.

The RE agent must present all offers to the seller.  In order for a valid offer, it should have 3 main parts, the property description, payment method, and contingencies.

If you are serious about this deal, put the numbers together and submit an offer with a contingency on satisfactory financing.

**Not a lawyer**

Chris Mason · Answer

I'm not a lawyer, but my general understanding is that in many/most/all states a listing agent is required to present all written offers to her or his client, the seller.

Wayne Brooks · Answer

No, an agent is Not required to ask their client any question the other side thinks of.

Chris Mason · Answer

It's a waste of time to negotiate back and forth over something that the relevant commercial lender might not even be willing to go for.

I'm not in the commercial lending world, but in the residential lending world I have seen inexperienced agents allow their clients to negotiate all sorts of crazy things that we simply will not allow.

Ryan Landis · Answer

@Maria Vogel as a few others have mentioned, put it in writing. Seems like you are looking at commercial properties in general, so likely your offer will have a similar structure each time you do put it together. That is helpful because even if this seller will not consider it, down the road you can have a template offer to use when trying to get commercial multi with seller financing.

You are a smart investor. As Chris Mason mentioned you would be surprised at some of the stuff buyers propose.

Brandon L. · Answer

@Maria Vogel this seems like something that would be put in the offer to purchase. I also agree with Chris Mason

Most commercial brokers want to bring a buyer that they know will perform, and if the buyer is already asking for cash from the seller, the perception is that you probably can't close the deal.

A good option might be to get your financing in order before you look at properties so you do not start from a weak negotiating position.

Peter Vekselman · Answer

Hey @Maria Vogel.  Put your offer in writing with the terms you are looking for.  Remember, many offers come with financing contingencies.  So don't let that totally scare you.

Having said that, I would also make a quick call to your lender to see if they are OK with the structure you are proposing.

Many lenders will NOT allow the down payment to be sourced like this.

If you need any more help just PM me.....

Peter

Wayne Brooks · Answer

@Maria Vogel As you so emphatically stated, your original question was "is the agent required...", the answer is no.  You didn't ask if it was smart.  Your lender could just as easily tell you if a seller 2nd would even be considered.......if so, then put your offer I writing.  As the seller's agent I wouldn't advise them to accept and take the property off the market, unless I talked to Your lender and he indicated it was doable.

Real estate agent required to ask a question to the seller?

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