Originally posted by @Brian Wall:
So, I recently started making many more offer direct off the MLS than I have before (I am an agent submitting for an investor client). I am getting a lot of "resistance" from listing agents saying they will not submit my offer until both I and my client have seen the property.
I am only submitting offers based on ARV (after repair value) taking into account an estimated rehab cost, based on pictures and/or description, and assuming I will do a "normal" rehab. So, I know on average what my costs will be, for a 3/2 in a certain area.
I really don't care what the property looks like, until I know I have an accepted or at least close to accepted offer.
Once we have an accepted offer and open escrow, we then inspect the property in detail. A very high percentage of the time, we do not "adjust" our price. The only time we do, is if we see any foundation or other major structural issues, that would not have been seen without walking through.
I made over 100 offers in the past few weeks, these were all "fixer" properties. I could not possibly go see all these properties.
BP Nation - Help me out, what is a good response to those agents that want me to go see property. I want to be courteous, but also tell them my client doesn't really care about the paint color, carpet, etc, because he is going to rip it all out anyway. All he cares is the area, and the property has a solid structure.
Thanks,
Brian
Hi Brian,
I always recommend seeing a property on your clients' behalf before submitting an offer, because you're working in their best interest. TI always preview properties for my buyers before putting in offers, most especially those buying site-unseen, such as my foreign investor clients. There are a few reasons for this:
1) Maintaining a strong relationship with our fellow co-brokers/agents is critical to our success and getting in the door in the future. Agents won't take you or your buyer seriously if an offer is placed on the property although no one has seen it... and besides, if you represent a seller, the seller may ask you if the broker/buyer have seen the property. Putting yourself in the shoes of the seller's agent, you want your client knowing that the buyer is serious.
2) You can report back to your client on the structural condition before you make an offer and you have more power to negotiate on your client's behalf knowing the condition is poor- even if they're gutting the entire place.
3) Your other buyers may like a certain property you're viewing, even if it's not right for this buyer mentioned in your post.
I hope this helps, best of luck.
Best,
Barry