Dealing with an agent, Right Response? LONG - Posted by Barry (FL)

Posted by Barry (FL) on January 29, 2002 at 11:12:37:

The bank has 107,500 before legals and all other inflated costs. Total with all costs 119,428.
I don’t have the cash to close, I was looking to flip.
House should sell quickly for 120k.
Will banks normally refinance a REO to a new buyer?
I have excellent credit. How should I structure the offer.
All insight appreciated,
Barry (FL)

Dealing with an agent, Right Response? LONG - Posted by Barry (FL)

Posted by Barry (FL) on January 28, 2002 at 23:43:47:

Original Offer Was: $110k cash. After I made offer, not signed just verbal, I realized my comps were wrong. I sent her the following email over the weekend as she was not submitting til Monday anyway.
Property Info: Foreclosure
reduced to $128,900 from $132,900 comps at $133,500

As per my voicemail message, please submit the following offers for ------------, ---------, Fl. on my behalf:

Cash: $90,230.00

Financed: $101,000 financing based on appraised value, not selling price, seller pays all closing costs.

Both offers to close in 30 days, all appliances and window treatments included. Subject to Inspection and approval of Partner.

I was not able to get my partner there this weekend, he will definitely inspect by Thursday.



Response from her Monday:

On Friday you made a cash offer of $110,000. Now you have two different prices. I’m sorry, I do not do business this way - I will have to have everything typed and signed by you. Both offers submitted via E-mail can not be submitted, they will be rejected as too low.


My response (Pending)

Dear L,

Thank you for this new insight. During our conversations on Friday I was unaware of your telepathic ability to know what your seller’s are thinking. As I said and apologized for in my phone message, I made a mistake. I am human. I am sure you have probably made some in the past, maybe even on this property, since it hasn’t sold in two months.

Correct me if I am wrong, but your position as listing agent is to look after the best interest of the seller, correct?

You are also, by law, required to present ANY AND ALL offers to the seller, correct?

My job as purchaser is to try to acquire said property for the least amount of money, as this is a business and I will have costs involved such as closing, marketing, holding, maintenance etc. etc. etc.

Now this property was foreclosed on, if my memory serves me in October of 2000. That means months of non performance before foreclosure and since, let’s say 8 months worth, being the conservative that I am. That means over 100k of non performance for 2/3 of a year, minimum. Now let’s say, and being human I may not be exact on this, this 100k of non performing loan keeps the seller from procuring 600K in performing loans. I, and this is only my humble opinion, not being a RE professional as yourself, would be doing your seller a service by relieving them of a non performing asset, thus enabling them to procure 6 times the amount of performing assets.

We are in a negotiation stage, by making two offers, I was allowing the seller an option on which would be more advantageous to them, either way it does not matter to me. I figure them financing the deal for me is worth another 10K plus and also allows the seller the opportunity to recoup some of their loses from this non performing asset.

I also would prefer to do business with the listing agent so that they will be fairly compensated for the hard work that they do. Again this does not matter to me.

If it is easier for you I will be more than happy to make one offer at a time. Here goes.

I Barry (FL) offer for the purchase of ----------------, ------------, Fl., legal description: ---------- SECTION – BLOCK ----- LOT ---- SUBDIVISION COMPLETION YEAR 19–
$90,230.00 CASH.

I have to be at work at 3:00pm I will be at your office at 2:00pm to sign the paperwork.
Please call me if this will be a problem.

Kind Regards,
Barry P. Markey
(—) --------

Should I send this email or just submit through another agent.


Self-defeating approach. - Posted by Brent_IL

Posted by Brent_IL on January 29, 2002 at 24:37:17:

The majority of people that real estate agents deal with will never make an offer on which the broker will get paid. They live with this every day. Once they classify you as a flake, neither the agent, the brokerage, nor any of their peers that they communicate with, will ever take you seriously.

Verbal offers are worthless because they are unenforceable. Do they have to present your offers? Sure they do.

To an individual:

“Mr. Seller, here’s an offer from some deadbeat who wants you to defraud the bank so you can go to jail while he skips with some cash. He also wants you to contribute cash of your own. What should I say your answer is? (Nudge, nudge, wink, wink)”

Is the seller a bank? If the property is owned by a bank they will not talk with you. They will refer you to the agent, and tell you to write up an offer. Most bank listings go to brokers that have a social or financial connection to the bank. Think they?ll burn the agent and risk personal exposure to deal directly with you?

I don’t see anything sinister or slick in the actions of the agent. She had every right to reject a series of verbal offers with contingencies for inspection and the approval of an unnamed partner and to further insist upon written offers. And, you want the seller to pay the closing costs. And, you want unorthodox financing.

Maybe she spoke the truth when she told you that an offer at less than 70% of FMV would be rejected.

It might be more effective to call the agent and explain that you are really interested in the property but you screwed up on the comps and can?t pay the first amount. Explain that because it’s your first, you can’t afford to overpay by any amount. Then ask him or her for input on the best way to proceed. Follow the advice they give, even if the advice is to go after another property. It will be to your long-term advantage.

Re: Self-defeating approach. - Posted by Barry (FL)

Posted by Barry (FL) on January 29, 2002 at 24:49:56:

Thanks Brent,
Actually I was in her office on friday ready to sign and write the check. I made the offer and was ready to sign but it was after 5 and she said she wouldn’t be typing up the offer til monday. She also said that she would fax it in, I didn’t have to sign a contract til after it was accepted.
The seller is a bank.
What would you suggest as an offer for the property?
It needs no work. an will probably sell quick for 20K
I was hoping to do a simultaneous close for a quick 5k but I could muster the money if neccessary
I was just trying to establish a base line for a counter offer.


Re: Self-defeating approach. - Posted by Brent_IL

Posted by Brent_IL on January 29, 2002 at 01:45:37:

Show the agent that you have the cash to close. She may know what the bank has into it and what they need to book the deal.

I can’t help with the cash offer amount, I’m strictly a terms man.