How are things Elix? My realtor is part of my team and provides comps and best areas to purchase homes and helps in making a decision on purchasing a property. Great deals 50% below FMV does not just come from sellers using an agent. They come from people who have inhertited homes too and probates, divorces, etc.
Don't just use Agents, use other strategies as well, such as direct mail campaigns.
__________________
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I strongly disagree with the comment that banks are only willing to take 90% ARV for their REOs. I have actually been buying REOs for the last two years on a consistent basis and nothing could be further from the truth. We offer anywhere from 50-55% ARV depending on repairs. The more repairs needed the better. We buy one property for every 20 offers or so.
I have a realtor that has no problem whatsoever in making low offers. In fact he insists upon it. If anyone has a realtor that doesn't feel the same, get another one. My realtor understands the value of volume and repeat business. I have referred at least 5 other investors to him and he is loving life right now. The days of getting rich off of one sale are gone, probably forever. Find someone like-minded and you will be fine.
It is truly a numbers game. The more offers you make the closer you get to a "yes". I would certainly hope no one expects to get every offer accepted. Don't be embarrassed or pressured to make higher offers that don't turn a profit.
Remember, the banks need us much more than we need them. There are many more properties on the market right now than are buyers.
Hi Family,
Don't worry what the realtors think about your offer...just tell them the offer you want to make. That is what they are for anyways. My first agent told me he is willing to work with me if i'm only buying properties over 250,000.00. I can understand where he is coming from but i FIRED him the next minute. With my new agent though, i told him if he works harder for me getting a deal done, i would compensate him for his effort. Now, He is going above and beyond to find me properties. I don't even have to call him now as i used to. He calls me all the time and tells me about new properties and how much my offers should be. He is offering low for me now because the more profit i make, the more he will be compensated.....just know how to play the game.
Good luck family!
Baria
Realtor. Cant live with them and you cant live without.
I'm getting the same rejection myself from realtors. My thought is the same as DJ. Realtor's are protecting there best interest. I had one realtor pretty much blame investor for the housing market crash, but i know for sure they were just pushing price over they value which cause most home owner to be upside down on a home. That my say on realtor.
__________________
Averyday is a Friday so weak up each morning and get excited.
If you suspect your realtor is not presenting all your offers to the property owners, then remind them of NAR Article 1-6/1-7. It basically states that all offers must be presented to the ownership regardless of amount or condition. In fact, I would include this article in writing everytime when instructing the agent to write up an offer.
WEST you have a great reminder! Remeber 80/20, 95/5
Everyone needs to Read Chapter 6 in "Profit From Real Estate Right Now". WE WILL ALL HAVE NEGATIVE Reactions to low ball offers. I read through the posts and I have to agree with ALMOST everyone.
If you put a 50% offer on a house that just had the contractors finsh $50K of work and has been on the market for 1 day for 99% of the current FMV. You will likely have a negative response from the LA and possibly the seller. This is where you need to be smart about your offers. Don't waste your time or the Agents time putting an offer on a property that has no sign of motivation.
I cannot stress enough how important it is to find an Agent to put your offers out that is part of the 5% of Agents that know what they are doing and do it well. This is a business and the offer is just a number. 95% of Agents do not understand this. They are emotianl about the home as the sellers.
When it comes to emotion about the property, do show some compassion to the sellers. If they owe more than it is worth and you as the investor are not prepared to do a short sale than you should not even make an offer on that property. You are not helping that seller in the right way. And if the property is listed it is very difficult if all of your negotiation has to go throught the Listing Agent.
You have to make sure the Agents say exactly what you NEED them to say to the seller. This is where you will test your Agent to see if they are in the 5% club. Example: If it is your best and Final Offer make damn sure your agent tells the seller or Listing agent that this is your best and final offer.
I have had emails from sellers telling me "How Dare You make such an offending offer trying to take advantage of someones possible misfortune." I was ****ed off at first especially when the LA said "Investors, Bahhumbug".
Just remeber that if a property you put an offer on is not actually put in and you did not recieve an official decline, and then later it sells for less or what your offer was, That listing Agent or maybe even your agent can be in big trouble. They MUST sumbit your offer.
The difficult part of this is when the Listing Agent tells the seller "Just between you and me, this offer is ****, we can get more." You will never know if they said that.
Oh well the deal of a lifetime happens once a week.
Great info Kimmy- Was hoping I could bookmark your post!
KimmyJ7601 wrote:
Low ball offers are not going to get you in the good graces with the listing agents. You are going to get the reputation of putting in ridiculous low ball offers and be blacklisted by your local real estate community. The fact is banks are NOT accepting low ball offers, even if you have all the reason in the world to offer a low ball offer. When a foreclosure initially comes on the market, the bank has a set % they will accept for the house. It is usually 90% of FMV. As the house sits on the market that % goes down a little bit every time, but not much. What you need to do is find houses that our within 15 to 20% of your MAO and then make the lower offer. You better have CASH and NO contingencies in your offer and an end buyer ready to go. Escrow should not be more than 30 days. You need to get friendly with some listing agents, in person, and tell them what you are looking for and what % of FMV. Be reasonable. It is very hard to come by a property being sold at 50% of FMV these days. Banks are trying to avoid a repeat of the late 80’s, early 90’s housing crash. They’re not releasing property like everybody thought, and they’re being sticklers about their price points. You need to find out what your buyers are willing to pay. For example, if your buyer is willing to pay 75% of ARV. That means your offers should be around 70% of FMV minus repairs. The 5% will give you a nice little profit for wholesaling. You’re not going to become an instant millionaire, but if you repeat this process 2 to 4 times a month you should be bringing in at least 10k to 20k per month. Just keep in mind that REOs are the hardest to maneuver. However, once you’re in, you’re golden! Also, don't forget to follow up on your rejected offers. They bank may not accept your offer this month, but next month your offer may be more enticing to them. Hope this helps.
Well folks, I'm new at this...but I have been online researching properties that have sold in Nashville during the last few months, and I'm telling you now, somebody is buying property for 40 and 50% off FMV. And there are quite a few of them. This is not a popularity contest, it is business. You want to make money, do it the way Dean Graziosi is telling us. He says put in low offers. If the real estate agent does not want to work with you, find another one. For heaven's sake people...you're not in kindergarten class....
I'm a real estate agent in Hawaii and I can guarantee you that I would NEVER allow the seller to have the potential buyer make the offer personally. As an agent for the seller, we have our clients (seller or buyers) best interest in mind and are PAID for that protection. I would not want to have my sellers intimidated, make a quick decisions, or agree to anything that they don't understand. That, after all, is why they hire a realtor. Make sense?
Here in Hawaii and, as far as I'm aware, in every state, by law all offers must be presented to the seller, HOWEVER an agent can make recommendations about that offer. Again, that's why they are hired. There are occasions where the seller will not take the recommendation of the agent (depending on what else is happening), and of course the agent must abide by the seller's request.
Most people that hire an agent can afford the commissions and have often been persuaded to list the property at a higher price. If the price isn't coming in, then they have to re-think the whole deal.
I would think it's best to go after the "for sale by owners" that aren't represented. Of course then you both should have pretty good lawyers so that neither party gets burned.
Just my opinion. I'm looking to make money in real estate as an investor as well, so I'm learning along with everyone else here.
Your agent is in a very serious possibility of losing his license. What he is doing is against their morality clause.
If you are compensating him above his normal commission, his broker needs to know. If his broker finds out that they are not reporting commissions...your agent is screwed.
If you are giving him the re-listing at a higher price as the compensation, then you're cool. It doesn't sound like that's what you're doing though.
Be careful. If an agent is willing to break his loyalties to their own broker, what do you think he'd do to you?
Hi,
It is difficult to figure out who you are replying to but I think that this part of your post #42 was directed at me:
I would NEVER allow the seller to have the potential buyer make the offer personally. As an agent for the seller, we have our clients (seller or buyers) best interest in mind and are PAID for that protection. I would not want to have my sellers intimidated, make a quick decisions, or agree to anything that they don't understand. That, after all, is why they hire a realtor. Make sense?[/quote]
This does make perfect sense to me but clearly you misunderstood my post. I said that I believe a buyer can ask to be present when their offer is made (there is definitely a common belief that our offers are not always presented in the first place) I certainly did not intend to imply that a seller would be intimidated or would have to make a quick decision or agree to anything that they don't understand in such an instance! Of course I am sure too that an agent would call their client in advance anyway - to make their recommendations of course! Would it be the worst thing in the world for a buyer to be present when their offer is made?
What I have found that seems to be working for me up where I am is getting about 25 to 30 percent then also include repair costs, and my fee. The offer calculator works well. Up here most of my buyers tell me what they want which is 30 to 40 percent, but when I have talked to them if they are interested in certain (potential deals, no addresses of course) they are all over it. If I get a property that has FMV of $300,000 for $170,000, needs $30,000 in repair, that's just about $80,000 in equity (after closing costs, etc.) That is almost a 50 percent return on their investment. Not bad, but when I make my offers it is only to motivated sellers. People who don't care, or who have been on the market for 5 days and have money in the bank can wait. I am finding the ones who can't. Hope this helps and good luck.
Richard
Bothell, WA
__________________
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Are these offers in major metropolitan areas because to be honest with you if for the most part this generally does not happen in NYC
I know for a fact that now even with cash buyers, most banks or owners are firm with their prices and less 'distressed' to give away the homes unless
1. Its a cash deal
2. 1-2 week closing
3. Buyer is willing to put up a larger earnest amount (10%-20%) to guarantee the closing date is enforced
Like i've said, I never refused to turn in a deal, but I have been very adamant with my clients about the reality of them passing
One thing I would never allow as well would be to have my buyer present when making an offer to the seller. Other than the closing table there is no reason to see each other before that.
Also, you as the client have every legal right to move on when you feel an agent hasn't done their job, but if we had a nickel for every client who told us the absurd amount of money they were going to make us......
You know what, the same thing has happened to me...
I personally think the agents say that cause the commission is based off of sales price.
If the commissions too low, they wont even submit the offer.
My 2 cents opinion... if anyone knows anything please post
I DO KNOW... as per contract, they are "SUPPOSED" to submit every offer. I just don't think they morally uphold it.
Knowledge is Power
- Pimpedoutgeese
I am 99.99% sure that this is true but if the law has changed I hope someone will jump in and set the record straight.
I really believe that you can say to an agent that you would like to be present (live and in person) when your offer is made to the seller. (Let's see if someone can confirm this first though) but I think that the agent, legally, cannot refuse this request!
Great Quote: Knowledge is Power!
Angela
Angela,
I would think most agents send in their offers by fax or email. I do and most that I know do; too much of a waste of time to drive to every single sellers or buyers agent. I'm fine with just seeing them in person at the closing table.
My latest offer on a 2 BR Ranch with FR, 2 car Garage was $44000, listed for $79900. I include a detailed letter with any outrageous lowball offers describing the condition it's in and the amount of rehab it needs to make it livable. This house smelled like they let a cat loose without a litter box and needed a complete gutting, but being a 2 BR it had plenty of potential to be a 3 BR.
My offer was submitted by agent 3 weeks ago and never heard anything back.
Now I see it's back on the market for $44900. Go figure. Putting in offer tomorrow.
I submit all my offers by email. I scan the documents and send the offer as an attachment. When I do this, I also send a copy to my client (the buyer). This way my client knows that I submitted the offer. I also ask that all rejections are signed by the seller. If the offer was submitted by the listing agent to the seller, it is not a problem to get a signed rejection at that time. I do get signed rejections with nasty notes attached.
__________________
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Does anyone know what kind of incentives we could offer to realtors (above commissions for deals they brought us)? I know in Profit Now, it mentions letting them in on the deals we find ourselves, like FSBO's, but how would we structure that? Could we offer a % of our profit, even if it's a deal they find for us? I'm just trying to figure out how to make a realtor want to get on board w/our goals. I want to make it a win-win for both. Thanks! I'm super new! I've done one flip a few yrs. ago, but that was w/my own money and it took us way too long to finish and get sold. So I would like to get a system going to move properties quickly.
__________________
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
I submit all my offers by email. I scan the documents and send the offer as an attachment. When I do this, I also send a copy to my client (the buyer). This way my client knows that I submitted the offer. I also ask that all rejections are signed by the seller. If the offer was submitted by the listing agent to the seller, it is not a problem to get a signed rejection at that time. I do get signed rejections with nasty notes attached.
I've had friends/associates who presneted lowball offers get threatened, cursed out, yelled at and once provoked to fight.
right. there are realtors that do that on every submitted contract anyway, but yes you can request that. you can also request to be present when it is submitted in person. find out your real estate commission's website and look up the license law or ask them about it. as realtors, we are required by law to submit every offer. i keep hearing about agents scoffing at these low offers, etc., not wanting to insult the seller. they are not doing their job. they don't have to insult the seller, but they do have to submit the offer. just my input.
Does anyone know what kind of incentives we could offer to realtors (above commissions for deals they brought us)? I know in Profit Now, it mentions letting them in on the deals we find ourselves, like FSBO's, but how would we structure that? Could we offer a % of our profit, even if it's a deal they find for us? I'm just trying to figure out how to make a realtor want to get on board w/our goals. I want to make it a win-win for both. Thanks! I'm super new! I've done one flip a few yrs. ago, but that was w/my own money and it took us way too long to finish and get sold. So I would like to get a system going to move properties quickly.
As an agent, we cannot accept anything above what we are contractually signed to receive, nor can we give money to others who find homes for us. Thos are called kickbacks and they are illegal.
The fact is the agent gets paid by our broker, who also negotiates any commission we expect to receive.
In terms of an FSBO, they normally prefer not to deal with realtors because they know they have to pay us, but when it does come to that, our fee is negotiated with the owner not the investor(you). In that situation you negotiate your fee separately
Thanks for your comments! I was wondering about the legality of compensating realtors. So in essence their incentive will be the amount of deals we plan on doing with them (consistent repeat business) and not necessarily a huge commission on any one property.
__________________
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Thanks for your comments! I was wondering about the legality of compensating realtors. So in essence their incentive will be the amount of deals we plan on doing with them (consistent repeat business) and not necessarily a huge commission on any one property.
Here's my idea, if any real estate saids that. Send them an email back stating that's ok, maybe you didn't understand... how long as that property been setting there? How many offers have come thou?
If you don't get and answer back in 24/48 hours that your questions has been answered. Then here's another way around that. wright down the address of the property your look at, go down the court house records and look up the owner of the property.
Then contact the owner direct, ask them this question "how long as this real estate agent helping you sell your home?" When you get the answer, like a long time....
Let owner know your intereted in the property, and if your agent can't sell your property in two weeks, contact you then.... Leave a number so they can call you...
I call this FIREING YOUR AGENT, because they can't get the job done....
__________________
Life starts out by dreaming, when your born... Then taken action on those dream... The biggest dreamer on the plant are self-made millionaires and billionaires. Pick a millionaire or billionaire studie there moves take advice an put it to action.
Realtors are supposed to present all offers. Read the realtor code of ethics in your state. Its posted on your state web site.
You can request to be present when the offer is presented to the owner. If its a crazy number (you may not want to be there). If its a structured deal that needs explaining and your afraid the agent may not be able to convey your message O.K.
You can go direct to the owner with your offer as well. Your realtor cannot.You are not bound by the same RE laws that your realtor is. I personally don't thing thats a great coarse of action. Its burning bridges.
You also haven't said how low your bids are. If your bidding $10,000 on $100,000 property everyone will blind you dead.
Some RE deals take time to procure, that is the reason you work on so many.You may bid on a property and get a response 3 months later. Sometimes you just hit the right deal. Take a look at the number of deals you have done. If you put out 100 offer and have no response its clearly you. If you put out 10 offers you need to work a little harder. I put out 10 offer and had 2 responses. I used Matts method.
I have been a real estate broker for 25 years. There are great agents and not so great agents, like every profession. Building relationships is critical to success with realtors. Remember what Matt Larson's ratio's were. 25 to 1. I think some may come back or you can resubmit them if the homes still stay on the market for consideration. Being professional is so important to building relationships and realtors are getting bombarded with offers that fall apart, so be understanding and try to find one or two realtors that understand what you are trying to accomplish. You can request to present your offer with the realtor also. Most bank owned won't consider this but sellers on the market might. I would also ask the realtors why the offers were rejected and not countered. You may be able to learn what to do better next time by gathering the information. I would also always thank the realtors for their efforts and ask them to keep you in mind with other properties they may have coming in the future. And most importantly, never give up, learn as you go, make corrections and improvements and you will get to your goals.
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How are things Elix? My realtor is part of my team and provides comps and best areas to purchase homes and helps in making a decision on purchasing a property. Great deals 50% below FMV does not just come from sellers using an agent. They come from people who have inhertited homes too and probates, divorces, etc.
Don't just use Agents, use other strategies as well, such as direct mail campaigns.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I strongly disagree with the comment that banks are only willing to take 90% ARV for their REOs. I have actually been buying REOs for the last two years on a consistent basis and nothing could be further from the truth. We offer anywhere from 50-55% ARV depending on repairs. The more repairs needed the better. We buy one property for every 20 offers or so.
I have a realtor that has no problem whatsoever in making low offers. In fact he insists upon it. If anyone has a realtor that doesn't feel the same, get another one. My realtor understands the value of volume and repeat business. I have referred at least 5 other investors to him and he is loving life right now. The days of getting rich off of one sale are gone, probably forever. Find someone like-minded and you will be fine.
It is truly a numbers game. The more offers you make the closer you get to a "yes". I would certainly hope no one expects to get every offer accepted. Don't be embarrassed or pressured to make higher offers that don't turn a profit.
Remember, the banks need us much more than we need them. There are many more properties on the market right now than are buyers.
Hi Family,
Don't worry what the realtors think about your offer...just tell them the offer you want to make. That is what they are for anyways. My first agent told me he is willing to work with me if i'm only buying properties over 250,000.00. I can understand where he is coming from but i FIRED him the next minute. With my new agent though, i told him if he works harder for me getting a deal done, i would compensate him for his effort. Now, He is going above and beyond to find me properties. I don't even have to call him now as i used to. He calls me all the time and tells me about new properties and how much my offers should be. He is offering low for me now because the more profit i make, the more he will be compensated.....just know how to play the game.
Good luck family!
Baria
Baria
I'm getting the same rejection myself from realtors. My thought is the same as DJ. Realtor's are protecting there best interest. I had one realtor pretty much blame investor for the housing market crash, but i know for sure they were just pushing price over they value which cause most home owner to be upside down on a home. That my say on realtor.
Averyday is a Friday so weak up each morning and get excited.
are between 50-60%
Keep searching for the right Realtor and you will find a good one.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
If you suspect your realtor is not presenting all your offers to the property owners, then remind them of NAR Article 1-6/1-7. It basically states that all offers must be presented to the ownership regardless of amount or condition. In fact, I would include this article in writing everytime when instructing the agent to write up an offer.
Everyone needs to Read Chapter 6 in "Profit From Real Estate Right Now". WE WILL ALL HAVE NEGATIVE Reactions to low ball offers. I read through the posts and I have to agree with ALMOST everyone.
If you put a 50% offer on a house that just had the contractors finsh $50K of work and has been on the market for 1 day for 99% of the current FMV. You will likely have a negative response from the LA and possibly the seller. This is where you need to be smart about your offers. Don't waste your time or the Agents time putting an offer on a property that has no sign of motivation.
I cannot stress enough how important it is to find an Agent to put your offers out that is part of the 5% of Agents that know what they are doing and do it well. This is a business and the offer is just a number. 95% of Agents do not understand this. They are emotianl about the home as the sellers.
When it comes to emotion about the property, do show some compassion to the sellers. If they owe more than it is worth and you as the investor are not prepared to do a short sale than you should not even make an offer on that property. You are not helping that seller in the right way. And if the property is listed it is very difficult if all of your negotiation has to go throught the Listing Agent.
You have to make sure the Agents say exactly what you NEED them to say to the seller. This is where you will test your Agent to see if they are in the 5% club. Example: If it is your best and Final Offer make damn sure your agent tells the seller or Listing agent that this is your best and final offer.
I have had emails from sellers telling me "How Dare You make such an offending offer trying to take advantage of someones possible misfortune." I was ****ed off at first especially when the LA said "Investors, Bahhumbug".
Just remeber that if a property you put an offer on is not actually put in and you did not recieve an official decline, and then later it sells for less or what your offer was, That listing Agent or maybe even your agent can be in big trouble. They MUST sumbit your offer.
The difficult part of this is when the Listing Agent tells the seller "Just between you and me, this offer is ****, we can get more." You will never know if they said that.
Oh well the deal of a lifetime happens once a week.
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Well folks, I'm new at this...but I have been online researching properties that have sold in Nashville during the last few months, and I'm telling you now, somebody is buying property for 40 and 50% off FMV. And there are quite a few of them. This is not a popularity contest, it is business. You want to make money, do it the way Dean Graziosi is telling us. He says put in low offers. If the real estate agent does not want to work with you, find another one. For heaven's sake people...you're not in kindergarten class....
Queen Designer
It happens to me all the time. Here is what is cool. I forget about the insulting responses as soon as I get a deal locked up at 50% off!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I'm a real estate agent in Hawaii and I can guarantee you that I would NEVER allow the seller to have the potential buyer make the offer personally. As an agent for the seller, we have our clients (seller or buyers) best interest in mind and are PAID for that protection. I would not want to have my sellers intimidated, make a quick decisions, or agree to anything that they don't understand. That, after all, is why they hire a realtor. Make sense?
Here in Hawaii and, as far as I'm aware, in every state, by law all offers must be presented to the seller, HOWEVER an agent can make recommendations about that offer. Again, that's why they are hired. There are occasions where the seller will not take the recommendation of the agent (depending on what else is happening), and of course the agent must abide by the seller's request.
Most people that hire an agent can afford the commissions and have often been persuaded to list the property at a higher price. If the price isn't coming in, then they have to re-think the whole deal.
I would think it's best to go after the "for sale by owners" that aren't represented. Of course then you both should have pretty good lawyers so that neither party gets burned.
Just my opinion. I'm looking to make money in real estate as an investor as well, so I'm learning along with everyone else here.
Hope this helps.
Your agent is in a very serious possibility of losing his license. What he is doing is against their morality clause.
If you are compensating him above his normal commission, his broker needs to know. If his broker finds out that they are not reporting commissions...your agent is screwed.
If you are giving him the re-listing at a higher price as the compensation, then you're cool. It doesn't sound like that's what you're doing though.
Be careful. If an agent is willing to break his loyalties to their own broker, what do you think he'd do to you?
Hi,
It is difficult to figure out who you are replying to but I think that this part of your post #42 was directed at me:
I would NEVER allow the seller to have the potential buyer make the offer personally. As an agent for the seller, we have our clients (seller or buyers) best interest in mind and are PAID for that protection. I would not want to have my sellers intimidated, make a quick decisions, or agree to anything that they don't understand. That, after all, is why they hire a realtor. Make sense?[/quote]
This does make perfect sense to me but clearly you misunderstood my post. I said that I believe a buyer can ask to be present when their offer is made (there is definitely a common belief that our offers are not always presented in the first place) I certainly did not intend to imply that a seller would be intimidated or would have to make a quick decision or agree to anything that they don't understand in such an instance! Of course I am sure too that an agent would call their client in advance anyway - to make their recommendations of course! Would it be the worst thing in the world for a buyer to be present when their offer is made?
Angela
What I have found that seems to be working for me up where I am is getting about 25 to 30 percent then also include repair costs, and my fee. The offer calculator works well. Up here most of my buyers tell me what they want which is 30 to 40 percent, but when I have talked to them if they are interested in certain (potential deals, no addresses of course) they are all over it. If I get a property that has FMV of $300,000 for $170,000, needs $30,000 in repair, that's just about $80,000 in equity (after closing costs, etc.) That is almost a 50 percent return on their investment. Not bad, but when I make my offers it is only to motivated sellers. People who don't care, or who have been on the market for 5 days and have money in the bank can wait. I am finding the ones who can't. Hope this helps and good luck.
Richard
Bothell, WA
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.
Are these offers in major metropolitan areas because to be honest with you if for the most part this generally does not happen in NYC
I know for a fact that now even with cash buyers, most banks or owners are firm with their prices and less 'distressed' to give away the homes unless
1. Its a cash deal
2. 1-2 week closing
3. Buyer is willing to put up a larger earnest amount (10%-20%) to guarantee the closing date is enforced
Like i've said, I never refused to turn in a deal, but I have been very adamant with my clients about the reality of them passing
One thing I would never allow as well would be to have my buyer present when making an offer to the seller. Other than the closing table there is no reason to see each other before that.
Also, you as the client have every legal right to move on when you feel an agent hasn't done their job, but if we had a nickel for every client who told us the absurd amount of money they were going to make us......
Rock on to those that get there's
I personally think the agents say that cause the commission is based off of sales price.
If the commissions too low, they wont even submit the offer.
My 2 cents opinion... if anyone knows anything please post
I DO KNOW... as per contract, they are "SUPPOSED" to submit every offer. I just don't think they morally uphold it.
Knowledge is Power
- Pimpedoutgeese
I am 99.99% sure that this is true but if the law has changed I hope someone will jump in and set the record straight.
I really believe that you can say to an agent that you would like to be present (live and in person) when your offer is made to the seller. (Let's see if someone can confirm this first though) but I think that the agent, legally, cannot refuse this request!
Great Quote: Knowledge is Power!
Angela
Angela,
I would think most agents send in their offers by fax or email. I do and most that I know do; too much of a waste of time to drive to every single sellers or buyers agent. I'm fine with just seeing them in person at the closing table.
My latest offer on a 2 BR Ranch with FR, 2 car Garage was $44000, listed for $79900. I include a detailed letter with any outrageous lowball offers describing the condition it's in and the amount of rehab it needs to make it livable. This house smelled like they let a cat loose without a litter box and needed a complete gutting, but being a 2 BR it had plenty of potential to be a 3 BR.
My offer was submitted by agent 3 weeks ago and never heard anything back.
Now I see it's back on the market for $44900. Go figure. Putting in offer tomorrow.
Great way to present offers when you're going to lowball
Congrats
I submit all my offers by email. I scan the documents and send the offer as an attachment. When I do this, I also send a copy to my client (the buyer). This way my client knows that I submitted the offer. I also ask that all rejections are signed by the seller. If the offer was submitted by the listing agent to the seller, it is not a problem to get a signed rejection at that time. I do get signed rejections with nasty notes attached.
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Does anyone know what kind of incentives we could offer to realtors (above commissions for deals they brought us)? I know in Profit Now, it mentions letting them in on the deals we find ourselves, like FSBO's, but how would we structure that? Could we offer a % of our profit, even if it's a deal they find for us? I'm just trying to figure out how to make a realtor want to get on board w/our goals. I want to make it a win-win for both. Thanks! I'm super new! I've done one flip a few yrs. ago, but that was w/my own money and it took us way too long to finish and get sold. So I would like to get a system going to move properties quickly.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
I've had friends/associates who presneted lowball offers get threatened, cursed out, yelled at and once provoked to fight.
Welcome to the world of real estate
right. there are realtors that do that on every submitted contract anyway, but yes you can request that. you can also request to be present when it is submitted in person. find out your real estate commission's website and look up the license law or ask them about it. as realtors, we are required by law to submit every offer. i keep hearing about agents scoffing at these low offers, etc., not wanting to insult the seller. they are not doing their job. they don't have to insult the seller, but they do have to submit the offer. just my input.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
excellent information and a good way of thinking.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
As an agent, we cannot accept anything above what we are contractually signed to receive, nor can we give money to others who find homes for us. Thos are called kickbacks and they are illegal.
The fact is the agent gets paid by our broker, who also negotiates any commission we expect to receive.
In terms of an FSBO, they normally prefer not to deal with realtors because they know they have to pay us, but when it does come to that, our fee is negotiated with the owner not the investor(you). In that situation you negotiate your fee separately
Thanks for your comments! I was wondering about the legality of compensating realtors. So in essence their incentive will be the amount of deals we plan on doing with them (consistent repeat business) and not necessarily a huge commission on any one property.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Both
Here's my idea, if any real estate saids that. Send them an email back stating that's ok, maybe you didn't understand... how long as that property been setting there? How many offers have come thou?
If you don't get and answer back in 24/48 hours that your questions has been answered. Then here's another way around that. wright down the address of the property your look at, go down the court house records and look up the owner of the property.
Then contact the owner direct, ask them this question "how long as this real estate agent helping you sell your home?" When you get the answer, like a long time....
Let owner know your intereted in the property, and if your agent can't sell your property in two weeks, contact you then.... Leave a number so they can call you...
I call this FIREING YOUR AGENT, because they can't get the job done....
Life starts out by dreaming, when your born... Then taken action on those dream... The biggest dreamer on the plant are self-made millionaires and billionaires. Pick a millionaire or billionaire studie there moves take advice an put it to action.
Realtors are supposed to present all offers. Read the realtor code of ethics in your state. Its posted on your state web site.
You can request to be present when the offer is presented to the owner. If its a crazy number (you may not want to be there). If its a structured deal that needs explaining and your afraid the agent may not be able to convey your message O.K.
You can go direct to the owner with your offer as well. Your realtor cannot.You are not bound by the same RE laws that your realtor is. I personally don't thing thats a great coarse of action. Its burning bridges.
You also haven't said how low your bids are. If your bidding $10,000 on $100,000 property everyone will blind you dead.
Some RE deals take time to procure, that is the reason you work on so many.You may bid on a property and get a response 3 months later. Sometimes you just hit the right deal. Take a look at the number of deals you have done. If you put out 100 offer and have no response its clearly you. If you put out 10 offers you need to work a little harder. I put out 10 offer and had 2 responses. I used Matts method.
Adam
I have been a real estate broker for 25 years. There are great agents and not so great agents, like every profession. Building relationships is critical to success with realtors. Remember what Matt Larson's ratio's were. 25 to 1. I think some may come back or you can resubmit them if the homes still stay on the market for consideration. Being professional is so important to building relationships and realtors are getting bombarded with offers that fall apart, so be understanding and try to find one or two realtors that understand what you are trying to accomplish. You can request to present your offer with the realtor also. Most bank owned won't consider this but sellers on the market might. I would also ask the realtors why the offers were rejected and not countered. You may be able to learn what to do better next time by gathering the information. I would also always thank the realtors for their efforts and ask them to keep you in mind with other properties they may have coming in the future. And most importantly, never give up, learn as you go, make corrections and improvements and you will get to your goals.