Are unofficial offers harmful?

Question

Russell Brazil · Answer

If the number is low, I only make a verbal offer. Its not worth wasting everyones time to put something into writing. Not only does it waste your time as the buyer, your agents time....but it also wastes the listing agents time and the sellers time who have to review it. In fact I would say in most instances if it is a lowball, you have a better chance of something happening verbally than by putting it into writing. If some lowball comes over in writing without a discussion ever happening, you are likely just to piss off the seller and his agent. But if you are communicating verbally, at least you can both walk through the logic of the offer with the listing agent....and show the listing agent that you respect their time by not wasting it.

Matt Lefebvre · Answer

Hello @Meghan Macur!  Personally, the way I communicate an offer is with a full package.  I'm in a fairly competitive market, so I usually call up the listing agent or seller 24-48 hours prior and let them know that my client will be submitting an offer.  Once my client is completely ready to submit, I send over a full package to the other party including an the signed Purchase and Sale agreement, a copy of their pre-approval letter or proof of funds, a picture of the escrow deposit, a sheet explaining all of the comps that verify the offer price, and a brief explanation in the email as to what some of the terms are.  I do negotiate over the phone or over email after the initial offer is submitted, however, I never make the initial offer contact that way.

Ryan Dossey · Answer

I don't mean to be harsh..... But 90% of retail agents (Especially those trying to pretend they work with investors) couldn't sell a Harley Rider Chrome Accents. I really wouldn't trust them to present the offer favorably or with confidence.

They're probably doing a "Hey John, I know you're listed at 100k but do you think your seller would take 65K? Okay. Thanks!"

If you're submitting low offers especially on investments properties your offer has to LOGICALLY make sense. Anytime I "go low" I send over an entire PDF. An intro letter on company letterhead, comparables, a repair cost estimate/scope of work, and my offer.

So the seller is presented with an orderly logical offer. My 65k offer makes sense because their home needs 30k in work etc.

PS: I've got family in Bozeman. I wouldn't last one winter in your shoes!

JD Martin · Answer

My realtor does it all the time before we memorialize it in writing. But we have worked together on lots of deals, he knows I'm a serious buyer and he knows most of the other agents so they know the phone offer is essentially the offer before the contract. It is bad form to make or have your agent make verbal offers you have no plan or ability to follow through on, so I would expect any good agent to not do it for you more than once or twice before telling you all offers will need to be in writing.

Patrice Boenzi · Answer

Hi @Meghan Macur! I am an investor and agent with Fathom Realty. I may be the only one, but the way I see it there is no such thing as an unofficial offer. As a Realtor I have certain minimum services I need to perform on behalf of my client and one of those is presenting all offers in a timely manner. The problem I have with your statement is that the agent can decide to take an offer or not. The only exception I know is if the client told their agent not to present offers below X amount of dollars.

The other problem is that you are trusting your agent to present your offer verbally (speak for you) and trusting the seller's agent to speak for you too. I like the offer to speak for me!

Hope that makes sense!

Rich Hupper · Answer

I would definitely submit a complete offer package with dates, terms, numbers, copy of an earnest money check, proof of funds, or pre approval. Everything to make the seller interested, and for you look like a bona fide buyer.

emails or phone calls just discussing numbers are not sincere. Back before there was email and internet people serious about buying property would hand deliver offers and meet in person with checks in hand.

I make sure my clients offers are all legibly typed out, neat and easy to read, with realistic time lines based on the type of funding they have and due diligence they need to perform.  I also make sure that offers are all in PDF format so they can be easily opened on any platform.

If After submitting a complete offer package and it gets rejected, you should request a copy of the offer signed by the seller declining it.  Our offer forms in massachusetts have a field for sellers to sign if they reject or counter the offer. Once an offer is signed in massachusetts by both parties it is considered an enforceable contract.

This serves as better proof the seller actually was delivered the offer and read through it.

Matt Lefebvre · Answer

@Meghan Macur, no I do not.  The purpose of letting them know is just to keep the door propped open in case some other buyer comes along and submits a written offer before you do.  A big part of the negotiation is what you include in an offer package, so I very rarely reveal anything prior to submitting the full package.

Mike Cumbie · Answer

Hi @Meghan Macur,

Generally I agree with the rest of the posters, send in a full package. Especially if you have not worked with that agent before. If you have a relationship you can get a little less formal.

Are unofficial offers harmful?

Most Popular Reply