What incentive is there for a realtor to present low ball offers?

[Jessica G.]

Hi everyone. Apologies if this question has been answered before, a quick search didn't come up with anything.

Anyway - a friend of mine who is a real estate agent sent me a property that has not come on the market yet. I just listened to the podcast "How to Buy Your First (or Next) Property by the End of the Year" - episode 247 and it was awesome. Brandon suggested making 1 offer per week and I love that, if nothing else for the experience in making offers and analyzing deals.

Here's my question: Why would my real estate agent buddy want to present my low ball offer to the seller? Isn't his goal to make as much money as possible? I just want to be considerate of his time since he is already answering my 9 million questions and sending me reports every day.

I appreciate any responses!

[Philip Williams]

Hi @Jessica G. the main reason my realtor will present my low ball offer is because we have a relationship. He knows I will close when I say I will close, he knows financing is already in place. He knows that when I buy a personal residence even when it's out of his area I will use him. Like any other relationship it is give and take he understands the business that I am in and knows I'm not looking to pay retail. I also know the business he is in and don't needlessly waste his time, if I am presenting low ball offers there is a reason, long time on the market, needing a lot of repairs etc. I'm not finding brand spanking new houses that have been on the market for 12 hours and offering 70% of listing that would definitely be a waste of his time.