Realtor not interested in putting an offer @ 91% of Asking

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Realtor not interested in putting an offer @ 91% of Asking

Gaurav Mehta
New to Real Estate · San Jose, CA · Member since 2017 · 91 posts · 23 votes

Property listed for 928K in San Jose, CA. On Market for 60 days now. No offers on the table at the moment.

Asked realtor if she can make an offer for 850K and she said it is too low and is not interested in making such a low offer. Understand the difference is 78K but isn't it worth putting an offer when there is nothing on the table.

Should I just switch to a different realtor.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

Doesnt seem unreasonable given days on market, but I dont know your market.

Sometimes if I know the offer is too low, Ill just make a call to the listing agent and ask if it is worth the time of putting pen to papet on the low offer. Saves everyone time and annoyance.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    if they refuse I guess they refuse.. contact listing agent and tell them you want to make an offer.

    you can say your representing yourself and you will have an attorney draft the purchase contract

    or you can go to the Staples or on line and find your own contracts and fill them out.  

    IN most states agents have to present offers that are presented to them.   that should get the ball rolling

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Doesnt seem unreasonable given days on market, but I dont know your market.

    Sometimes if I know the offer is too low, Ill just make a call to the listing agent and ask if it is worth the time of putting pen to papet on the low offer. Saves everyone time and annoyance.

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  • Todd Rasmussen
    Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    Yes. I understand her side of it too, but you need to have someone who makes time to do what you need them to. If making a low offer isn't worth their time, find someone who will.

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y

    I like to e-mail a Letter of Intent/Interest (LOI) directly to the LA. I can offer more than 1 scenario. If the seller likes one of them, I'll submit a formal offer.

    Gotta take control of your own deals.  iMO, your offer has too many zeroes and looks like a balloon waiting to be shot down.  Make it a specific number like it came from your calculator and is all you can do.  Good luck.

    2Reply
  • Edgar Rodriguez
    Real Estate Agent · Tampa, FL · Member since 2017 · 191 posts · 98 votes
    7y

    Someone who is hungry enough will write offers for you. A commission on 850k is enough for me to spend the 30 minutes to 2 hours it takes to write a complete and well done contract. It takes me about 20 minutes from start to sending it over for signatures to write a purchase agreement with no crazy addendums. 

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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    7y

    If you do not have an exclusive buyer-broker agreement, then find another agent, but get it in writing first that she will not write your offer as she may come back insisting on her commission as procuring cause of sale if she showed you the property first.  If you do have an exclusive buyer-broker agreement, call her broker, let them know what's going on, and ask if they will assign your exclusive buyer-broker agreement to another agent who will write the offer.  

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Lynn McGeein:

    If you do not have an exclusive buyer-broker agreement, then find another agent, but get it in writing first that she will not write your offer as she may come back insisting on her commission as procuring cause of sale if she showed you the property first.  If you do have an exclusive buyer-broker agreement, call her broker, let them know what's going on, and ask if they will assign your exclusive buyer-broker agreement to another agent who will write the offer.  

     exclusive buyer broker agreements on the west coast for resi is extremely rare. Just fyi.. 

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  • Frank Wong
    Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y

    If the house is sitting on 60 days with no price cut from $928k original price it's not too far off and your agent should write the offer.  Now if it's sitting on 60 days and they had a price cut from $1m to $928k that's a different story.  Gotta have the whole picture before judging it.

    1Reply
  • Jason Hsiao
    Investor · Pasadena, CA · Member since 2015 · 269 posts · 189 votes
    7y

    Yeah @Gaurav Mehta DOM for Santa Clara county is about 40 days and change right now. 60 is def reasonable... hell, I'll write it for you or have someone on my team to do it for you. Let's take a look at the comps we can prob even get it for even less for you haha. DM the details or let me know how I can help.

    3Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    Did you justify this price to your agent or is only interested to see if it can get some traction with the offer price? I am certain that's not your bottom line but it definitely gets the ball rolling. 

    I'd try to have this conversation with your agent and tell them politely you'd move on otherwise. If they still wont bite then you have your answer and can pursue the property independently of them. 

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  • John Wilson
    Akron, OH · Member since 2017 · 9 posts · 5 votes
    7y

    I started with a real estate agent who did not want to make low offers on properties for me, I suspect because they were accustomed to working with owner occupy buyers who don't look for margin in the deal.  I switched to an investor agent who was willing to work with me how I needed them to work with me in and I have closed 4 deals with them, all well below market price.

    It sounds like you already know the answer, your real estate agent should be a partner on your team and it doesn't sound like they're being a teammate.  Unless you are being unreasonable with your offers, I personally see nothing wrong with asking to write low offers.

    I think it was Dave Ramsey (normally I'm not a disciple but I like this comment) that said if you aren't embarrassed by your first offer then you offered too much.  Carry on!

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @John Wilson:

    I started with a real estate agent who did not want to make low offers on properties for me, I suspect because they were accustomed to working with owner occupy buyers who don't look for margin in the deal.  I switched to an investor agent who was willing to work with me how I needed them to work with me in and I have closed 4 deals with them, all well below market price.

    It sounds like you already know the answer, your real estate agent should be a partner on your team and it doesn't sound like they're being a teammate.  Unless you are being unreasonable with your offers, I personally see nothing wrong with asking to write low offers.

    I think it was Dave Ramsey (normally I'm not a disciple but I like this comment) that said if you aren't embarrassed by your first offer then you offered too much.  Carry on!

    Keep in mind the dynamics in the Silicon valley and Bay area are worlds apart from OHIO.. even though prices are settling down there is still more people than houses.. it really depends on your supply demand structure.. In Ohio they still have more houses than people.. so you can use those methods to your advantage and succeed.. Keep in mind this 928k house in San Jose will sell for 50k in Akron.. LOL 

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  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    7y

    @Gaurav Mehta call the listing agent and feel them out. If No offer, then you can even write it lower if you’d like. Heck you can justify extra $20k+ in price just re-education by not being represented and seller not having to pay that. Best of luck!

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  • John Wilson
    Akron, OH · Member since 2017 · 9 posts · 5 votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @John Wilson:

    I started with a real estate agent who did not want to make low offers on properties for me, I suspect because they were accustomed to working with owner occupy buyers who don't look for margin in the deal.  I switched to an investor agent who was willing to work with me how I needed them to work with me in and I have closed 4 deals with them, all well below market price.

    It sounds like you already know the answer, your real estate agent should be a partner on your team and it doesn't sound like they're being a teammate.  Unless you are being unreasonable with your offers, I personally see nothing wrong with asking to write low offers.

    I think it was Dave Ramsey (normally I'm not a disciple but I like this comment) that said if you aren't embarrassed by your first offer then you offered too much.  Carry on!

    Keep in mind the dynamics in the Silicon valley and Bay area are worlds apart from OHIO.. even though prices are settling down there is still more people than houses.. it really depends on your supply demand structure.. In Ohio they still have more houses than people.. so you can use those methods to your advantage and succeed.. Keep in mind this 928k house in San Jose will sell for 50k in Akron.. LOL 

    Thanks for the feedback.  Although I discussed lowball offers, my primary goal to provide my insights into how I feel a buyer-agent relationship should work.  As long as the buyer is being reasonable I believe an agent should be a team-member that is willing to try new things regardless of market location.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Twana Rasoul:

    @Gaurav Mehta call the listing agent and feel them out. If No offer, then you can even write it lower if you’d like. Heck you can justify extra $20k+ in price just re-education by not being represented and seller not having to pay that. Best of luck!

    Only if a variable rate commission is agreed to in the listing contract and has been disclosed in the MLS. If an agent engages in a variable rate commission when one has not been agreed to and disclosed, they violate the standards of practice, mls rules and possibly the law depending on the state.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @John Wilson:
    Originally posted by @Jay Hinrichs:
    Originally posted by @John Wilson:

    I started with a real estate agent who did not want to make low offers on properties for me, I suspect because they were accustomed to working with owner occupy buyers who don't look for margin in the deal.  I switched to an investor agent who was willing to work with me how I needed them to work with me in and I have closed 4 deals with them, all well below market price.

    It sounds like you already know the answer, your real estate agent should be a partner on your team and it doesn't sound like they're being a teammate.  Unless you are being unreasonable with your offers, I personally see nothing wrong with asking to write low offers.

    I think it was Dave Ramsey (normally I'm not a disciple but I like this comment) that said if you aren't embarrassed by your first offer then you offered too much.  Carry on!

    Keep in mind the dynamics in the Silicon valley and Bay area are worlds apart from OHIO.. even though prices are settling down there is still more people than houses.. it really depends on your supply demand structure.. In Ohio they still have more houses than people.. so you can use those methods to your advantage and succeed.. Keep in mind this 928k house in San Jose will sell for 50k in Akron.. LOL 

    Thanks for the feedback.  Although I discussed lowball offers, my primary goal to provide my insights into how I feel a buyer-agent relationship should work.  As long as the buyer is being reasonable I believe an agent should be a team-member that is willing to try new things regardless of market location.

    I totally get it I have been a broker for 44 years in the distressed asset space but I also grew up in Cupertino and I have down literally thousands of transactions in the mid west in the ( what I call low value asset) Ie under 100k SFR space.. And many times when I am out your way and talking to local investors and then pop up on the phone pictures of houses in Palo Alto that sell for 2.5 million its like OH shoot I can buy a 80 unit apartment in Ohio for that money.. So agents in the Bay Area have uber competition.. And up until just very recently if you did not offer 50k over ask you would not stand a chance.. so market is evolving for sure

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  • Darius Kellar
    Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y

    @Gaurav Mehta I dare someone not to put my offer in. I double dog dare them. 

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    7y

    @Gaurav Mehta This is why real estate agents are being replaced by Amazon...and Redfin...and Zillow...and the next tech company that can actually get **** done without stupid agents.

    The future is looking bright! 

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  • Priya ThomasPro Member
    Investor · Cincinnati, OH · Member since 2017 · 135 posts · 61 votes
    7y

    Find another realtor

    0Reply
  • Matt T.
    Denton, TX · Member since 2018 · 30 posts · 15 votes
    7y

    In my opinion, an agent should give guidance but should work for the buyer. I don't have a problem with the agent calling the seller's agent and talking it out before writing an offer, but if my agent tells me they won't write an offer, I am going to get a new agent.

    0Reply
  • Michael Strachan
    Specialist · Santa Clara county, CA · Member since 2017 · 81 posts · 57 votes
    7y

    I will never understand when a realtor refuses to write an offer for their client. If they truly feel it is a waste of everyone's time and energy, then they should be able to give you a handful of reasons why. At the end of the day it costs you nothing to write an offer so do it! Even if it just gets you to the negotiating table, that's a start! As an agent working in the Bay Area, I can tell you that the market has shifted in the last couple of months and even in our area sellers who have listings that have been on the market for 45 days or more are getting nervous! Keep in mind, many of these people expected multiple offers within two or three weeks of going on market even though that hasn't been happening for quite a while now. So many listing agents do a poor job at setting expectations with their clients early. If they haven't received a single offer that should tell them that they are poorly priced and I would expect that at the very least you should be getting a counter offer. Just last week, my clients closed on a condo for almost ten percent below the original list price. It happens. Hell, if you're looking for a realtor to write it up, I would be happy to. Just my two cents.

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  • Brad Bonnifield
    Member since 2019 · 4 posts · 2 votes
    7y

    The San Jose market has begun to heat up again. The pattern (whether we like it or not) has been for agents to list below where they actually think it will sell to get multiple offers. In some cases sellers will even counter a buyer's full asking price offer. In the San Jose market if they are listed at $928k I don't see a seller accepting $850k-- but you never know. Sometimes you just have to shoot your shot! I agree with others that you need to find an agent that will be your partner and willing to work to get a deal done that may be a longshot. 

    0Reply
  • Ryan Scott Isacksen
    Property Manager · Castro Valley, CA · Member since 2016 · 212 posts · 110 votes
    7y

    I certainly would go with another agent.

    My opinion is that if they are unwilling to draft an offer, which would be incredibly quick, they are going to be unwilling to push when it comes to negotiating on your behalf.  

    That is the value the agent brings.

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