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Who Do You Present Your Buyer's Offer To?

A little earlier today I finished reading a post by Todd Clark about having a wonderrful buyer that he wanted to clone. However, what really piqued my interest were a couple of references about him presenting his buyer's offer directly to the seller of the home.

Who do you present your offers to? Do you present it to the listing agent or do you request to present it directly to the seller, in the presence of the listing agent, of course? I see positives and negatives to both of these approaches. However, I see more negatives than positives.

If I am presenting directly to the seller, there is only one stage of misinterpretation possible between my buyer and the seller. I can present a reasoned approach, my comps, etc in support of the offer. I can directly study the sellers reaction and perhaps learn something to my advantage.

However, it also sends a message to some that I don't trust the listing agent to present the offer in an acceptable manner. And, I will more than likely have to work with that agent, and his or her associates, in the future.

And then I think that I would not want a buyer's agent directly approaching my client. I am the impartial buffer between the buyer and the seller. I know I can present any offer in the most positive light, along with any objective observations that my client might ask for. And most important, the buyer, or buyer's agent, does not discover any information that might put my client in an inferior position.

Overall, I would rather deal with the agent and keep the buyer and seller at arms length. I think that is the best approach, but, that is only my opinion.

Who do you want to present your offer to?

Posted by Mike Saunders on 04/07/2009 11:31 AM

Comments (29)

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29 Comments on Who Do You Present Your Buyer's Offer To?

APR

2009

In Texas I deal with the listing Agent. The buyers and sellers are kept apart. I hear it's different in other states.

It's customary in our market to give the offer to the listing agent who then presents it to his or her sellers. If it is significantly off price or has some other oddity, we'll often discuss why the offer is what it is so they can tell the seller the buyer's reasoning. I've never had anyone ask to present directly to one of my sellers. Great question.

Well That depends. Sometimes it may be exactly because of my past experience with the listing agent.

But for the most part, I send it to the listing agent in 2 formats fax and e-mail PDF. And if necessary to the e-mail address of the seller.

The REO listings are almost all electronic. I find the majority of listing agents do a good job in relaying my offers.

I present the offer to the listing agent, and hope that it is being presented fairly!

I do not know your states law, but in Texas delivery to the agent is the same as delivery to the seller. Contacting the seller without the selling agent's permission is a violation of our ethics' law here. Thus, I never have and never will deal with a seller's agents client directly. I want to keep an arms length transaction as if my buyer knows that I have been talking directly to the seller, there is a possibility of fiduciary concerns. i.e. KISS: send it to the agent.....even if it is a discount agent.

I always present the offer to the listing agent, never directly to the seller. I respect the agen't relationship with their seller and would never go around them like that. I also present comps with my offers to justify the reasons as to why we are offering what we are offering. I also have never had a buyer's agent go around me and try to present directly to my seller.

Unless I also represent the seller I present all offers to the listing agent. I always try to send via at least 2 formats, ex: fax and e-mail, or even presonal delivery to ensure a quicker reply.

It is customary or old practice in Erie,PA to let the listing agent present to the seller. However, Howard Hanna's stand is that as a buyer's agent you have a fudiciary responsibilty to your client and one of those responsibilities is to negotiate on your buyers behalf, if the listing agent presents the offer are you negotiating on your buyers behalf? Some more seasoned agents from other companies are uncomfortable with the idea. I think that they are threatened by it. I ask to present all of my offers. This a new idea to alot of agents,but it shows your buyer that you are really working for them. As long as you explain to the listing agent that you would like to present the offer to the seller with the agent present and answer any questions the seller might have and go and wait in your car or the lobby until they discuss it or whatever arrangements you make. I think it is a good idea and is something that sets you apart from the rest. As far as the other agent thinking you are doing it because you are not confident in them that has nothing to do with it. Who can plead your buyers case(so to speak) better than you. Our company actually has training for our agents on how to present offers to the seller. I have been turned down before and in that case I write a letter to the seller telling them about my client, why the house if good for them, maybe some positive comments the buyers said, all of cousre with the buyers permission. When I am able to present. I thank the seller and listing agent for allowing me to meet with tell them why I am there etc.. tell them about my client and explain the offer,ask if they have any questions, thank them again and leave. That simple, I think it sets me apart from the rest-more professional-quality service.

Pat, Nancy, Claude, Mary - that is my practice and the practice of most agents here.

Tim - that is also the law here, but this is not really a matter of law but of business pratice. I did state with the presence and knowledge of the listing agent.I am in agreement on the fiduciary concerns.

David - same here

Jackie - I know that I want to fully understand everything in the offer so that I can present it to the seller in a manner that I fell will be best received and then answer any and all questions.

Sonja - an interesting approach, however, it may be viewed as a semantical difference, but, we are not negotiating on our buyers (or sellers) behalf but are representing them in those negotiations. Using the logic that I need to present the offer to the seller and explain it means that I give the listing agent the same access to my buyers. Pretty soon, the buyers and sellers ask why we are there at all!

Mike, Interesting question. When the market was red hot a couple of years ago I had a few buyers agents request to present directly to the sellers on a couple of my listings. The sellers gave permission and the buyers agents did their thing. For the most part they didn't do their buyers any favors because they weren't very good at presenting. Just because you can do it, doesn't mean you should do it.

Common practice here is to present to the listing agent. Rich

Rich - that is always the risk, a poor presenter/negotiator will just weaken the buyers position.

Mike, I've answered you post with another post because my statement wasn't exactly accurate in that original post, but here is the lowdown.

Click here to read my response to your well inspired post

Todd - thanks for posting the link to the clarification.

Mike,

As you know I've been writing about this lose of professionalism. I though Todd a kindred spirit, I was wrong. His latest blog was a major disappointment. Still his method is better than most, but it's nether sales nor negotiating. Sadly it's not in his clients best interest.

Saddly, even most of the best brokers I know have slipped into this malaise. I understand it, presenting anything but a full price cash offer is probably the hardest thing real estate salesman agents do. I don't know when this practice started seeing lots of O & A's I don't ever recal asking who presented it.

One would think in the era of agency professionals would want to represent their fiduciary.

Bill

Hi Mike,

I think the only time I've presented an offer to the seller was at the request of the selling agent to meet in his/her office. It was a little uncomfortable to me as it was the first and only time I'd done it but I think I showed myself to be more professional then the buyers agent because his/her sellers called me at home latter with questions they should have been asking their agent.

Bob

Bill - It appears to be working for Todd and his clients.

Bob - the other agent appears to not have been doing his/her job.

Mike,

As I said:"his method is better than most, but it's nether sales nor negotiating."

He's bound to do better than most.

Bill

APR

2009

Mike - a very interesting question. On most occasion I go through the listing agent, but when I do a direct presentation I always get an accepted offer and things move faster.

Mike,

I have always presented my offers to the listing agent and given the responsibility of presenting it to their seller. I have however heard of the idea of the buyers agent presenting the offer and have been tempted to try it.

Mike - I've tried it both ways. The old way of presenting in person is so Ozzie and Harriet. So waas picking up the key at the office before showing. Whether we like it or not, today's reality is strictly "Show me the money." With the TV inspired low ball offers that today's buyers are making, things have changed. Who knows they may swing back during the next sellers market? We really should be asking the seller at the time of listing how they want offers to be presented, and get that in writing.

Bill - if he is bound to do better why is it not in the best interest of his clients?

Jennifer - that is something to consider

Don - same here

Jim - that is not a bad idea, and, at least in Georgia, we need to make sure they understand we have to present all offers, no matter how good or bad.

We present all offers through the listing agent here. With fax, phone, and email, as well as distances/traffic/scheduling conflicts, I think it just makes sense to present your offer that way. If you want to bring in the emotional aspect of an offer, a letter from the buyer does the trick. Having a buyer's agent plead the case is not productive or effective in my opinion.

Don - I don't think the distances, traffic and scheduling are much more different than 20 years. I do recommend sellers include a letter in the "listing book", perhaps a buyers letter is not a bad idea either.

Back "in the day", we presented directly to the seller. These days, the seller is a bank or asset company, rarely a human or humans. But, even in that case, most people are too busy to sit down to listen to us. So, my vote is through the listing agent, provided you have a good relationship and the buyers letter doesn't hurt unless it give too much information.

APR

2009

Mike, I really want to thank you for this. I have to say the last two days have been some of the most interesting for me here in the rain. I'm not known for stirring the pot, but this topic sure seemed to do exactly that!

Don - I wan't in the business back in the day, however, I have bought and sold a number of my own places in the past 35+ years, the agent never presented to the seller nor did the buyers agent ever present to me when I sold.

Todd, it's good to get that going some times.

APR

2009

I'm mixed on this question as well.

First, allow me to say that I have "won" bidding wars by presenting my client's offer in person. Why? Because I know my stuff. I'm easy going, likable, smart and believable. I'm a professional. I've sat down in front of the seller and presented my buyers and their offer in the best possible light. I've discussed comps and market trends. Have I ever had the seller's jump up and say... "ok, where do we sign?" ... no, lol. But I think that short, official presentation of the offer leaves the seller with a really good feeling about my clients and our offer.

Having said that, the very first thing I do when I have a signed offer in hand is ask the listing agent what they think would be the best approach. Does she think the seller's would be open to my presence? Often times the agent welcome's me to present in person. She knows the listing is over priced and figures I can be the bad guy! Either I can get the offer accepted or I can set them up for the next price reduction! Win-Win!

JoAnna - thanks for sharing, I like that part about the LA knowing the listing is overpriced and wants you to be the bad guy!

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Mike Saunders

Athens, GA

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