Will my real estate buyer's agent make low-ball offers for me?

There is a property we want for listed at $349,000, however, we just missed a deal on the same street, 30 yards away (with a better view/backyard) for $261,000 a week ago. Should we be embarrassed to ask our buyer agent to offer $300,000? We are pre-approved and I believe the home is bank owned). Is it a lot of work for a buyer's agent to write up an offer?

Update:

I should note the home that sold for $261 was originally listed at $267. It was on the market for 8 days.

Update 2:

We are pre-approved, yes. This is a resale property. Most of the recent sales have been below $300k, though some properties are still listed at $699, though you can go up the road and get a 4000sf mansion on 3/4 acre for $600 so I'm not sure who in their right mind would pay it. There are homes everywhere, too many to choose from...we are willing to wait as long as it takes. I was mainly just curious as to how much work it was for the buyers agent to write an offer.

Update 3:

My point is...why should WE be the suckers? I would be a fool to not go by latest comps, right?

6 Answers

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  • 1 decade ago
    Favorite Answer

    If your agent won't make the offer you want, get a new agent; it is your money not his. Hell, you even did the resurch and have a reason.

    The whole point of listing a property is to look at offers; a lot of sellers will list way over market in hopes to find a sucker, how do you think the market got so over blown the last few years?

    Now that the market is reversing in terms of perceived supply and demand, low ball offers will become normal.

    Don’t worry about crybaby listing agents, Real Estate is hard ball, these agent’s aren’t going to be helping you make thoughts mortgage payments in the future so who cares what they think.

    If they turn your offer down just move on to anther property, don’t take it personally, be business like and polite regardless of the other peoples demeanor. If they don’t want your money, I bet someone else will.

    If your worried about the time needed to write up an offer, most RE forms are pretty quick but you can also have the agent write up a quick LOI, letter of intent. Basically it just states what you want to pay and any reasons on why they should accept your offer, in your case you can talk about the comps and the market.

    This way you can gage the sellers reaction with out obligating anybody to fruitless negotiations, they can just turn it down if they think it’s way too low or tell you it might be do able and to submit a real offer.

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  • 1 decade ago

    I would not go too low ball on them. If you start way low they will more than lickely counter with only $1000 off the price or just reject the offer. Something to think about, are you asking for closing costs to be paid by seller?? Down payment? Do you already have a pre-approval letter? Think about these things with you offer, but remember, it doesn't hurt to try. SO if you feel this house is worth 349,000 don't do so low. Stick to the 10% rule! Especially if this is a new property!!

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  • Anonymous
    1 decade ago

    Submitting an offer isn’t the hard part – it’s later justifying to the seller why your client offered them 15% less than their list price. Banks are notoriously unwilling to negotiate, and you’re making a gamble when you lowball them because your offer is likely to be outright rejected. If you then submit a second offer, you look like you really want the house which reduces your negotiating power.

    However, if you’re only willing to pay $300K for this house and you won’t be crushed by not getting it, submit an offer for that and have your agent generate a CMA report to justify that number. You don’t have anything to lose.

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  • 1 decade ago

    If a home that just sold for $261,000 a week ago those are the current comps of homes sold in the area. Offer $261,000. They have the option of countering that offer.

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  • 1 decade ago

    That just pisses the owner off. Never offer less than 10% below the list price, so for a house listed at $349,000, no less than $314,000 (and at that the bank will probably laugh at you, there is most likely a mortgage of at least $328,000 on that house they are trying to cover).

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  • Anonymous
    1 decade ago

    The agent you are using should be able to tell you if it is bank-owned. If he/she won't present an offer as you instruct, it's time to find another agent.

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