I canceled my agreement with my first agent in Lansing, MI

Accountant · Tulsa, OK · Member since 2018 · 312 posts · 349 votes

7y

@James Dean-Howell I'm not sure about you're first question, but regarding your second question on whether you were being reasonable or not, I'd say it depends on if you were up front with her from the beginning about being an investor and the possibility of submitting low-ball offers. However, based on you saying "given how Lansing is a very hot market and is probably due for a crash soon" I would guess that she was correct that there was no point in submitting that low of an offer (if the market really is running that hot). Also, if you truly feel that a crash is coming soon why would you be buying at current market prices (or even 80% of current market prices)? Going forward if you find another agent to work with I would be completely up front with them about you wanting to submit what they would consider low-ball offers, if they aren't comfortable with that then they aren't who you're looking for. Good luck

0 Reply

Chinmay J.

Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes

7y

Originally posted by @James Dean-Howell:

It didn't really go as smoothly as I hoped. We met yesterday after she refused to make a lowball offer on a property that she sent me. She basically said that making such offers was a waste of time in our market and she wouldn't endanger her reputation by making such low ball offers. I offered at 80% of list price. I under stood her perspective but also was firm in that I needed her to make these offers because those were the prices where my numbers made sense. Especially given how Lansing is a very hot market and is probably due for a crash soon. Everything is so overpriced I feel.

She said she would tare up my contract and sent me an email stating her reason for cancelibg it and how I refused to listen to her.

My first question is to ask if her word and that email is enough in terms of being legally binding? I don't want to find another agent who I close with and then she comes at me months later asking for a commission.

My second question is to ask if you all believe I was being reasonable. It was hard to put my foot down during the conversation and I took a lot of long pauses to explain my position. She has a lot of experience and I have no reason to believe, even now, that she didnt know what she was doing. However My numbers, cash on cash, cash flow, etc, couldn't work at much above what I asked her to offer. I am certain of that. Yet she was my first ever agent and I did screen 6 agents to get to her. What could I have done diffefently if anything? Am I asking too much? What can I do differently in that future in terms of screening and working with agents.

Email from her stating that she is letting you out of the agreement is good enough. Make sure it's the same email address that she has used to communicate with you in the past, so tomorrow she can't come and say that it is not her email address. How long is your agreement. Make sure going forward, sign a one month agreement, and then just do an extension if you are able to work with that person. If not, then after one month you are free to go your merry way.

That being said, a lot of realtors have experience working only with retail buyers. Working with investors is a completely different ball game.

How are you finding the agents? Are you going to Zillow, Realtor.com and looking up agents in that area, or getting recommendations from local investors? Getting recommendations in the area you are interested would be a wise thing to do.

Unless we look at the actual property and numbers, it's impossible to take sides as who was reasonable and who wasn't reasonable. Also we need to know your goals. Are you looking for fix and flip or you are looking to buy and hold. If you are looking to buy and hold, you have a slightly longer runway, and you can afford to pay slightly more, which can go a long way in a H-O-T market. As you see, lot of moving pieces here.. Good luck..

0 Reply

Account Closed

Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes

7y

It sounds like you were offering numbers that were all about your end, and ignoring the larger picture.

If the market is hot, offering lowball on new MLS listings is indeed pretty dumb. If the property has been sitting on the market, ignored, while everything else is flying off the shelves, NOW you can start offering lower than ask.. However it still has to be a smart number that has the situation in mind (cost of repairs, ARV, etc etc)

She fired you, I don't think you have to worry about her coming back and trying something sneaky. Next agent, I'd discuss your intentions a little more and see what they think.

0 Reply

James Dean-Howell

OP

Member since 2018 · 40 posts · 1 vote

7y

Originally posted by @Kevin S.:

@James Dean-Howell I'm not sure about you're first question, but regarding your second question on whether you were being reasonable or not, I'd say it depends on if you were up front with her from the beginning about being an investor and the possibility of submitting low-ball offers. However, based on you saying "given how Lansing is a very hot market and is probably due for a crash soon" I would guess that she was correct that there was no point in submitting that low of an offer (if the market really is running that hot). Also, if you truly feel that a crash is coming soon why would you be buying at current market prices (or even 80% of current market prices)? Going forward if you find another agent to work with I would be completely up front with them about you wanting to submit what they would consider low-ball offers, if they aren't comfortable with that then they aren't who you're looking for. Good luck

I told her during the interview that my goal was to find something at 80% of value. She said she could do it and that is why I chose her.

0 Reply

James Dean-Howell

OP

Member since 2018 · 40 posts · 1 vote

7y

Originally posted by @Account Closed:

It sounds like you were offering numbers that were all about your end, and ignoring the larger picture.

If the market is hot, offering lowball on new MLS listings is indeed pretty dumb. If the property has been sitting on the market, ignored, while everything else is flying off the shelves, NOW you can start offering lower than ask.. However it still has to be a smart number that has the situation in mind (cost of repairs, ARV, etc etc)

She fired you, I don't think you have to worry about her coming back and trying something sneaky. Next agent, I'd discuss your intentions a little more and see what they think.

We had a long interview I choose her because she assured me tgat she would be able to find my a property at 80% of value. So I made that Crystal clear. Next time I will ask them about their willingness to offer at 80%. If they can't or refused then I dont need a realtor. I will just start mailing to find the deals myself. I don't need an exclusivity agreement

As for thr particulae property it was on the market for long enough for the owners to lower the price from 150 to 130. Then I asked her to offer 110 with concessions. My goal was to get a counter offer and settle at 115 max. Otherwise the numbers didn't make sense.

I am going to start mailing more once I get my next paycheck.

0 Reply

Sean Sloop

Real Estate Agent · Grand Rapids, MI · Member since 2016 · 251 posts · 224 votes

7y

I work with DS Huber Real Estate. I would check them out as they work heavily with investors and has been extremely easy for me to work with.

I have been working with John Jungwirth.

They also are a PM company if that is something you need as well. Let them know I sent you.

Good luck!

Sean

0 Reply

Margie Pierce

Rental Property Investor · Minneapolis, MN · Member since 2017 · 33 posts · 13 votes

7y

I'm from Haslett. You need to get hold of whoever took over the estate of a guy named Doc Wallace who owned numerous houses on Lake Lansing. He passed away as did his wife in 2016 and I am sure there is a deal to be made there. Call Eyde and see if they know of a good agent for you to work with, he is the best real estate person in town, granted he is mostly commercial. They are tough but smart.

0 Reply

Ben E.

Investor · Marquette, MI · Member since 2016 · 12 posts · 0 votes

7y

When making offers on listed properties, contact the seller's agent directly and ask them to write up and submit the offer. This agent is more likely to help push the sale through as they will receive the full commission (no split with another agent). However, if the offer is really low and properties are moving.. it is still not likely to be accepted.

If you go this route, just be sure you understand the details of the closing process and are comfortable representing yourself. Be sure you have a relationship with a great inspector and get the correct inspection dates and terms in the sales agreement. Once you've purchased a few properties, this is not difficult.

It's also a good way to meet local agents. They will keep you in mind when future properties are coming to market. I picked up my last 2 properties this way.. before they were listed.

If you still can't get offers accepted, look into sheriff sales. I haven't done this yet, but I did stop by the court house and the sheriff was happy to tell me all about the process. You will have to find out how this works in your area.

0 Reply

I canceled my agreement with my first agent in Lansing, MI

8 Replies