submitting offers

submitting offers

Hey everyone. I wanted to get your opinions and thoughts on the follwoing. I know this happens alot.

You just submitted several offers and on a few of them the listing agent contacts you and says "the seller will not accept this offer" and DOES NOT even submit it to the seller!!!!

The agent is obligated to submitt all offers.

so what do you'all think?

__________________

Don't Wish the Past, Create the Future! - DH


Offer not submitted by agent to seller

I think the agent is finding an unethical, dishonest way to get around submitting the offer, in a way that will make it difficult for the one making the offer to get it submitted. I would suggest going around the agent to the seller directly through mail, phone, or personal delivery of the offer. Pas. Greg.


Offer not submitted

How would the buyer find this out? Is there a way to find out if the offer was submitted?

__________________

"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote


Format for a written offer.

I would like advice or approval on what I have come up with to use for making offers, especially on pre-foreclosures. Is what is below something I could use? It all fits on one page.

Greetings:
My name is Greg Merrill and I would like to purchase the property located at

------------------------------------------
I would hope that my acquisition of this property as an investment for my wife and myself, would not only be as a modest profit for us, but also would be of a great benefit to you, it’s present owner. Because things in people’s lives often can change drastically (not to mention changes in our nation’s economy) many people are now often finding that they are better off both financially and emotionally in selling a house or property that has become more than they can, or want to currently maintain. This may describe you now or in the near future. I would hope that you see that, though my offer at first might seem low, there are a large amount of items that I will need to pay for as the buyer. I also need to make a modest profit to make this purchase worth pursuing. Please consider that as the seller, you would receive a great deal of money almost immediately. I would be dealing with realtor fees if needed, closing costs, the cost of holding the property until I may be able to resell or rent it out. Before that, there are the costs for repairs and upgrades I will make so the property is desirable for a future renter or owner. Next consider my marketing costs as well as the inevitable incidentals that always seem to arise. After paying several thousand dollars for all of these things, I then still will have to pay taxes on any profit that I may eventually receive.

When you read the amount of my offer, understand that it is not just some low figure pulled out of the air. I am not ignorant of the current value of your property. Nor would I honestly insult you with an offer that is below what you should reasonably consider to sell your property for. No, I always work with a consistent formula that takes into consideration the factors of what it is going to cost me to purchase the property, improve the property, and then rent or resell the property and still make a modest profit that justifies the whole process.

I first research and find out what the current market value of a property is worth. That amount can be a real shock to an owner that purchased the property before market prices plummeted. I then deduct about three thousand dollars from what I could ask when I go to resell the house myself. Hopefully this will make it easier to sell, as a new buyer will see that they are getting it at a discount under current market value. My closing costs with you will probably be about three percent of the value of the property. Repairs generally run about ten thousand dollars when one considers new carpet, remodeling a kitchen and bathroom, putting in new lawns, painting inside and out, and other things that may be needed or desirable to sell the property again quickly. Realtors get six percent in the transaction. Having to pay the mortgage, taxes, insurance, utilities, as well as other upkeep of the property until a renter or new owner moves in may go on for an unknown amount of months. At the same time it is possible that the property may go farther down in value.

Following is a general breakdown of my eight point formula, that if you need further explanation I will give.

1. The property is currently worth ______________________
2. My future anticipated selling price is ______________________
3. My expected profit is ______________________
4. My expected 3% of closing costs is ______________________
5. Estimated repairs would come to about ______________________
6. At least 3 mo. of holding costs would be ______________________
7. Realtor fees of 6% would be ______________________
8. Subtracting numbers 3-7 from number 2 above,
my offer for your property is ______________________

If you are willing to accept this offer, I will draw up the sales contract for you or your attorney to review.
I can be reached at xxx-xxx-8271, or xxx-xxx-5468, or [email protected] for confirmation.
If you are not agreeable to this offer, please hold on to it as people often reconsider quickly.

Thank you for taking the time to considering this offer
Greg Merrill


Looks Good

I like your approach. I think dealing straight with the owner can simplify things and result in a better deal alot of the time. Sometimes a realtor may talk sense to the owner though so I would not go around there realtor all the time. Treat it as a case by case situation.

I like you straight forward approach. Appears that you are respecting the individual and empathizing with them in there current situation. These things are important to build some report with the current owner and make them want to work with you, the investor. Remember, these people are probable embarrased, and a little iritable in their current state.

My only suggestion would be to remove your expected profit. It is understood that you are trying to gain from this situation and to physically state it and the amount would be a turn off to me if I was the owner. The best adivce, probably said by others already, put yourself in there shoes and then see how it all feels. Try to read the letter...or better yet, let someone else read it aloud to you while you try to role play in your mind as the owner you are writing to. Make any changes you feel would be advantageous to your attempt.

Lastly, would you mind if I used some or most of your letter to prepare my own?

Thank you.


Unethical Real Estate Agent

to quote the original post...

"You just submitted several offers and on a few of them the listing agent contacts you and says "the seller will not accept this offer" and DOES NOT even submit it to the seller!!!!

The agent is obligated to submitt all offers."

I would agree, this is unethical and should be illegal if it isn't already. I would check with the state board of realtors and determine if they are required to submit all offers to the seller. They may stipulate that the offer should be correctly submitted in the proper format and must be fair/reasonable.

If you question the ethical nature of your real estate agent, you may opt to contact their realtor, who is their boss, and let them know. This may be enough to promote their ethical behavior in the future. If not, you can also contact the national organization of realtors or the state licensing board.

If you suspect that the owner has not received your offer, which I am not sure how one could find out, contact the owner personally and ask if they had received your offer from there real estate agent and had time to consider it. You can also contact the owner at the same time of submitting your offer to let them know of the submittal and that you look forward to their response.

Just some thoughts.


ethical, maybe

I have had listings where the seller was getting "low ball" offers, and wrote a letter saying they would not consider any offers below a certain amount. With this letter in my file, I could reject offers without submitting them to the seller. I have had buyers ask for a counter offer, and I had them resubmit a new offer instead. It is the Agent's responsibility to do what is in the best interest of his client. Even if that Agent is representing the buyer also, his first responsibility is to the seller.

Al

__________________

"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


Pastor Greg,

I think K.D. Hockersmith hit it on the head when he suggested to re-read the letter as a person in the pre-foreclosure situation. Not even as yourself, but someone actually in that position. Just my opinion, but it may be a bit wordy to catch their emotions, and I DO believe they would be responding to it emotionally, maybe not at all rationally.
I don't think it's to your advantage to list the formula for your offer. That IS a good layout, though, for YOU to refer to yourself when making an offer.
I don't think the sellers will be concerned about you making a profit. They just need someone to buy their house and help them to feel there is hope (something that probably comes very naturally to you in your line of work Smiling ). I appreciate all the time and effort you must have put into the letter, and it is always a great idea to run things by others. If two heads are better than one, how great are dozens? lol
Anyway, that is just my opinion, as someone looking in (since you asked in the PM).

Now, if you're sending it to a BANK (for an REO) I think it's GOOD to list all the expenses (maybe not the profit you'll realize.lol), so there is a lot of good stuff there. Just fine-tune it for each situation.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


A written offer

Thanks for your good advice. I will use it. You have my permission to use what you want. That was one reason I posted it, and didn't just "PM" it. May it prosper you.


Back to the drawing board.

Thanks for your good advice. I will use both yours and Mr. Hockersmith's advice and rewrite this format. I looked for such a formate on this site and in Dean's book and couldn't find one. Thanks again for your good suggestions. Pas. Greg


Greg

Hello Greg,

I had just posted a letter slighty edited by me, to homeowners in pre-forclosure. I am not sure if this is what you are looking for, but, I hope this helps in your quest in REI! Smiling

Here is the link:

http://www.deangraziosi.com/node/11969

__________________

"ALWAYS THINKING OUTSIDE OF THE BOX"


Pastor Greg...

This would be a great letter for a motivated seller. But I agree with Rina, for someone facing foreclosure it wouldn't be the one I would use. I would continue to stress how much you want to help them save their credit, help them get out of a bad situation so they can move on with their lives and start over. They don't want to hear that you're making a profit (even a modest one) off of their misfortune. They want to know that someone cares about THEM and is willing to help them, that's it! They're going through he## now and need a savior to set them free. You need to come across as that savior, not a vulture waiting in the wings to swoop down and pick the remains of their life, by stealing their home. If you'll pardon my expression.
Thank you for sharing that with us and asking for our opinion, as always we are glad to help. Eye-wink

__________________

Cool Elena Cool
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."


Pastor Greg,

Mostly just be yourself. PEOPLE reach "people in need". (Along with numbers that work to relieve their situation).
Hope nothing I said was discouraging to you. We're all here to encourage. Smiling

God bless,

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Learning from those with experience.

Thanks Lena. I feel like I need all the help I can get. I know you have actually gone down the paths I am only looking at entering. You and others, that have already proven you know what you are talking about, are a tremendous asset for me. My best decision would be to pay close attention to you. Your humble student.


An "Offer" formate

K.D.
Make sure you pay attention to Rina and Elena's responses on this subject. Follow those that have proven themselves. Greg


Offer of another letter to use

Thanks, I went to the link, read the letter, and saw Elena's approval of it as well. Her approval means a lot to me. Thanks again, this should be helpful to many others. Greg


Greg

You're welcome, Greg. I too agree, if someone like Elena, and of course the rest of the "Big-Dogs" Smiling approve, it's gotta be good! Smiling

__________________

"ALWAYS THINKING OUTSIDE OF THE BOX"


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