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Updated almost 7 years ago on . Most recent reply

Account Closed
  • Blacksburg, VA
2
Votes |
21
Posts

Lower Offer Directly to Listing Agent?

Account Closed
  • Blacksburg, VA
Posted

I've been working with an agent and viewing a few good properties, but nothing great. I'm viewing a property that I'm hopeful about this weekend. It would be purchased with a conventional loan if the numbers work out and an offer was accepted. 

There are two other properties that are of a much lower level (needs more work) that I may be interested in. I would pay cash for these properties and probably low-ball offers. One is Fannie Mae (B neighborhood) and the other is in a C neighborhood.

I haven't yet mentioned these two properties to my agent - I did find them on my own. Should I contact the listing agents directly since I'd be making a much lower offer and would like the best possible chance at getting the offers accepted - meaning the listing agent would get the full commission (instead of splitting it with a buyer's agent)?

Just getting started, so I appreciate any thoughts, ideas, suggestions...

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Cara Lonsdale
  • Realtor and Investor
  • Scottsdale, AZ
1,479
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Cara Lonsdale
  • Realtor and Investor
  • Scottsdale, AZ
Replied

@Account Closed I can appreciate where you THINK you are doing yourself a favor, but in reality, you are not.  In fact, you are shorting yourself the representation that your agent provides you in these deals.

Let me explain...

Going directly to the listing agent with the idea that they would get the whole commission, and thus provide you an "in" to a more favorable answer is false.  The listing agent has to look out for the Seller's best interests, so the thought that they would encourage a Seller to take a low ball offer for the chance to make a higher commission just has them on the losing end of negligence.  Additionally, may listing agents have variable commissions, so this would mean that if no other agent is involved, the commission would lessen.  Lastly, without your agent to represent you, you stand to lose negotiating ground throughout the process, whether it be in the initial offer period, the inspection period, or other opportunities along the way.

If you are interested in a property that is active on MLS, the best course of action is to work with your Realtor to let them negotiate the best deal for you. You will find that you will do much better WITH them, than without.

Best of luck to you!

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