Current Agent refuses to make "Low ball" offers in Lansing MI.

[James Dean-Howell]

I signed an exclusivity contract with one agent for 6 months to try her out. She is a retired real estate investor of over 30 years and currently runs a bed and breakfast and a rental. We've seen a few houses and I've thought about making a few offers. She refuses to make offers that she considers "Low ball."

When I decided to go with her I did so when she assured me that she could find me a property that meets my criteria at 80% of Market value. She said she is the best because of her experience and connections. She is active in the market, on city boards and part of many real estate organizations, (where I met her), and knows what she is doing. I have no reason to doubt her. Yet I'm not sure how I will be able to find property at 80% of market values if she refuses to offer on them.

I told her we need to talk after she told me no on my last offer. I asked her to offer 110 with concessions on an income property which just had a price reduction down from 151k to 130k. We will have a meeting "sometime next week."

As much as I want to make money I also want to build a positive reputation within my investment community here in Lansing Michigan. How should I approach her about my concerns about finding a property at 80% market value like she said she would?

What questions should I ask? How can I understand her perspective and make sure that we are both on the same page? How can I frame the conversation positively? Am I expecting too much of an agent? Thanks for your time!

[Raul R.]

@James Dean-Howell

I have no idea where if your market is very competitive or not. If it is your agent might have a point doesn’t want to waste time w an inexperienced investor. Once you have experience and credibility it will be a different story. My realtors know i can close and if needed can close quickly once you build a relationship it makes a big difference. My offers don’t get question no more but that’s because I’ve closed on multiple deals. My market is very competitive I only do low ball offers when I do all cash I don’t want to waste anyone’s time.

You need to understand your market if it’s a seller market you are just wasting your realtor time making low ball offers. Eventually my market will become a buyers market when it does I will adjust..