Posted by Tony-VA on July 22, 2002 at 17:40:09:
I believe your agent is likely to be correct that they are not required to submit a LOI. No problem find a different agent. You are not working with an Agent who finds value in working with investors. No problem, to each his/her own.
You need an Agent who understands that sales is a numbers game. You need to explain that you will not waste their time having to drive you around to look at properties for hours on end. You will streamline a system to make life as easy for them as you can. You will not waste their time submitting dozens of contracts (that they are legally required to submit) but rather a simple fax of a Letter of Intent. This takes very little time for the agent in comparison the obligations they have or feel when offering contracts. You will wear agents out submitting formal offers on every property you find.
The Letter of Intent simply weeds out those who are not yet motivated enough to consider your offer. Your agent need not follow up on the LOI but rather let you know when someone has responded to your LOI. From there you will know that the Seller is someone who needs your services as outlined in the LOI and you and your agent can now submit the contract.
The LOI is little more than direct marketing to some degree. You are looking for direct contact with possible prospects. If they respond, you move in for the real negotiation and waste not the Agent’s time nor yours if the Seller is not interested.
I have found agents much prefer this method once it is explained. This allows them the time to ride Mom and Pop Harry Home Owner around all day to look at dream houses. Meanwhile the Agent has dozens of LOI feelers out there that may well bring a commission with little effort and NO Driving!
Volume will keep this Agent happy and on good terms with their Broker. Be good to the agent and you will have a good partner. If the agent does not wish to play ball, simply call another one. Heck they are everywhere.
Best Wishes,
Tony-VA