Forums / Property Investing / Help Needed! / What do you think about putting your offers through the real estate – will they take it to owner

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  • Profile photo of mkcmkc
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    @mkc
    Join Date: 2006
    Post Count: 46

    Hi guys.
    Say you have a bit of a wierd offer you want to put in on a property . Might be a 12 mth settle request or a low bid , part deposit arrangement, rent buy setup to suit your plans. Any number of the things you dream up to suit whatever the investing situation you have for the property or funds on hand whatever.
    So do you put anything unsual into the real estate , are they usually open about taking it to the owner reguardless and do it or worried they won't get their cut for awhile and won't touch it ?
    Could be the place might be still under realestate contract period so your worried about approaching owner direct – maybe you can't find owner or feel they might not want to be approached, or if that's all fine would you just approach them or put it through the real estate?

    Cheers

    Profile photo of Jon ChownJon Chown
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    @jon-chown
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    I find it difficult to believe that I just read this post and that someone would actually ask this question – but here goes with an answer.

    It is the agents duty to the vendor to present all offers to them, however it is also their duty to offer advice as to if the offer is in the best interest of the vendor or not.   It is then up to the vendor to decide to accept or decline or counter the offer.

    As to approaching the Vendor direct, in my opinion this would be the height of rudeness, however in saying that, I am sure that some people out there will do it.   As an agent I will have already advised my clients to expect someone to do this and have advised them to offer my contact details.

    Jon

    Profile photo of MooseheadMoosehead
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    @moosehead
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    I think it's a valid question.  From my limited experience most agents don't like offers with any non-standard terms included and I've heard more than once 'I don't think the vendor will be interested in that so I'm not inclined to pass it on…'

    I'm not sure what the answer is.  Threatening the agent usually doesn't work… you need them on side to make the deal most of the time.  Maybe putting your offer in writing, clearly explaining the terms, could be a good way to go.  Easy for the agent to pass on and you get to decide how to present the offer to a degree.

    Profile photo of mkcmkc
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    @mkc
    Join Date: 2006
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    Sorry Jon .
    You have higher standards than some then l guess, good to see , sorry to offend.
    l have seen this question though and similar asked here and allot of other places dozens of times l’m afraid because Moose is right .
    Some Agents will act like that , l’ve had them not pass offers on . Unfortunately one in paticular that would have changed my life , seriously . Then by coincidence l actually bumped into the owner somewhere a few years later . Not only did he say he would have taken the offer, but he didn’t get it. Nearly cried right there.
    l was wondering if real estates were abliged as you say , to take anything and everything to the owner because l have a weird one l’m working on.
    Cheers

    Profile photo of bam bambam bam
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    @bam-bam
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    i know its pretty low, but what i do is give the agent my offer  in writing, and send a copy to the vendor's solicitor.

    i only do this if  i think i'm dealing with a dodgy agent…

    Profile photo of tammytammy
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    @tammy
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    I understand where you are coming from with your question. We recently put an offer into a REA for a rural holding based on a 6 month settlement. The REA was most indignant and informed me that "what did he know…I have only run 14000 or so sales and I have never heard of this……Vendor wont like it….Too risky "etc. I ended up suggesting that it was his opinion and I would appreciate it if he would actually take the offer to the vendor. Eventually the vendor did accept our terms (in the meantime we found another property and purchased it) so short story was they did take our terms but too late. Was this because of the REA??? We will never know. I know REA are supposed to be obligated to take every offer to the vendor, but I have also had cases where after making an offer, I have not even recieved a phone call back. I guess the followup of the purchaser is dependant on how determined you are to purchase that particular real estate. Whilst I have not sent an offer to the vendors solicitor like bam bam I understand why they would do it. No offence is intended for any REAs out there, and indeed I have had many more favourable experiences than bad in dealing with REAs.

    All the best
    Tammy

    Profile photo of Jon ChownJon Chown
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    @jon-chown
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    Hi everyone, I guess I just take Agent bashing a little personally – no offense taken on my part as all questions are valid to the person asking the question.

    Unfortunately, I can't speak for all States as I understand that property negotiation is different across Australia, However in Qld an Agent must take and present all offers to a Client (I would personally recomend that as a Buyer you insist that the offer is done in writing(as a contract) and not taken verbally.   I am sure that all of you would know if the conditions that you are offering are reasonable and the best way to understand this point is to ask yourself if you would accept them if they were put to you.   Obviously, if you don't ask, you don't get.   But don't take it personally if the answer is no.

    Jon

    Profile photo of bam bambam bam
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    @bam-bam
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    i also forgot to mention that there is a price for everything.

    i would not go behind the agents back unless i'm almost certain that he won't pass on my offer because of the obvious bad will it creates… you'd want to hope u won't be dealing with him again anytime soon.

    Profile photo of mkcmkc
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    @mkc
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    Yeah see this is my point Tammy. You do get attitude from some agents . l don’t know where it comes from or whether they’re worried about getting their fee or what. Sorry once again to any agents , you can’t be responsible for others though so don’t worry about it.
    But even in allot of the corses , they advise to find agents that will work with you with investing offers, no money down offers and all the rest because hardly any will or haven’t heard of it but then suddenly one says oh yeah bla bla.
    l really like the old guys , l dunno they’ve worked back in the times when vendor terms and all sorts of deals we’re common .

    l could say for a fact from my experience , 90% do not like anything out of the ordinary . Spose it could mean they might get pissed around if they touch stuff like that , dunno, their fee.
    l just find in so many cases , if you could just talk to the vendor , there’s a good chance he may well be open or even done deals himself in the past .
    And then , what about a long settle , well really so what in allot of cases because the place could still be up for sale 12 mths after your dates anyway . Least it’s a done deal with a long settle
    l know there’s been two just this year for me l would kill to get hold of vendors personally.
    l’ve had the R E not call me back to quite a few times to be honest , or just give you the look and you know then it won’t get there

    Cheers

    tammy wrote:
    I understand where you are coming from with your question. We recently put an offer into a REA for a rural holding based on a 6 month settlement. The REA was most indignant and informed me that "what did he know…I have only run 14000 or so sales and I have never heard of this……Vendor wont like it….Too risky "etc. I ended up suggesting that it was his opinion and I would appreciate it if he would actually take the offer to the vendor. Eventually the vendor did accept our terms (in the meantime we found another property and purchased it) so short story was they did take our terms but too late. Was this because of the REA??? We will never know. I know REA are supposed to be obligated to take every offer to the vendor, but I have also had cases where after making an offer, I have not even recieved a phone call back. I guess the followup of the purchaser is dependant on how determined you are to purchase that particular real estate. Whilst I have not sent an offer to the vendors solicitor like bam bam I understand why they would do it. No offence is intended for any REAs out there, and indeed I have had many more favourable experiences than bad in dealing with REAs.

    All the best
    Tammy

    Profile photo of mkcmkc
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    @mkc
    Join Date: 2006
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    Thanks Bam.
    Hey l’m wondering . So what do you find is the attitude of the solicitor when they get it , and then the vendor ?

    Bam.

    PS , l have approached a few owners in the past . Found some are fine or even don’t really like the real estate path anyway , others have given me the look and sent me packing , back to the agent.

    bam bam wrote:
    i also forgot to mention that there is a price for everything.

    i would not go behind the agents back unless i'm almost certain that he won't pass on my offer because of the obvious bad will it creates… you'd want to hope u won't be dealing with him again anytime soon.

    Profile photo of mkcmkc
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    @mkc
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    l’ve had two this year alone so far . l’m not a big shot, just starting out really over this past few years so l need any leverage l can get but.
    Ones been taken off the market now , l really wanna talk to the owner of that one . l sat back on it in the end because it was way over priced . l’m not sure where the legals stand on that though. l spose if it’s off the market now it’s the owners business isn’t it.
    The second one has only been on market two mths.
    l’m sure it’ll be a way slow seller so l’m hoping the owner might be open if his realistic. One up the roads been up two years so the deal l want to put to him would be over in twelve mths, gotta look good to him surely.
    Cheers

    Profile photo of Jon ChownJon Chown
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    @jon-chown
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    Now I’m totally confused.   MKC says:-

     l'm sure it'll be a way slow seller so l'm hoping the owner might be open if his realistic. One up the roads been up two years so the deal l want to put to him would be over in twelve mths, gotta look good to him surely. 

    You surely must be talking about some God forsaken property out back in the boon docks where no one in their right mind would want to live.   It’s probably positively geared so I’m way out of my depth for advice.   The fact that it’s been on the market for such a long time tells me this, the only other scenario is that the Seller is not motivated and won’t meet the market value, in which case, why would you bother to buy a property like this – Please explain!

     

    With the state of the market in Major cities and Regional Centers (Demand exceeds Supply).  Please tell me why any Seller would look at a 12 month settlement?   Again I can only speak for my local area which is experiencing an annual growth rate of 10% so with this in mind, what are you suggesting I advise a Seller who has a property with a current market value of $300,000?

     

    Dear Mr. Vendor I have an offer of $300,000 with a 12 month Settlement.   Or   Dear Mr. Vendor I have an offer of $330,000 with a 12 month Settlement   If it is the latter, I wouldn’t have a problem presenting it to the Vendor, however if it is the former, why? What’s in it for him?

     

    Please tell me what I’m missing?   I am honestly trying to learn from the collective experience of the Investors here.

     

    Jon

    Profile photo of bam bambam bam
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    @bam-bam
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    mkc

    circumventing the agent has worked very favourably for me on one occasion and not at all on another.  the vendors solicitor is generally very obliging and just passes on your written offer.  the first time i did this i actualy bought the property on favourable terms but earned a lot of hostility from the agent. another time, the agent called me up, gave me a piece of his mind etc… but the owner listened to the agent. unfortunately for the owner, 3 months later when no more offers were coming in, he acepted a cheaper settlement. but maybe the terms were more to his liking??? i find that quite often vendors have unrealistic expectations in the early weeks…

    i'm interested about the 2 properties u mentioned earlier ( on the market for 12 & 2 months respectively). if an owner won't meet the market & he's been waiting it out for 1 or 2 yrs, then he won't probably sell cheaply. find out what the owner wants. eg long settlements are favoured by those who may be waiting for their new house to be built etc.. but i wouldn't be offering above market value as jon suggested unless the suburb is in the early stages of a booming market or the property has  unique development potential etc…

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