Realtors Need To Understand That Real Investors Don't Make Low Ball Offers!

By
Services for Real Estate Pros with | Real Estate Radio USA

I don't waste my time sending out "low ball offers". Yet so many agents waste my time with horribly priced listings that they actually get upset when they are on the receiving end of a legitimately priced offer.

So we decided to dedicate an entire show to this and we have seen from the feedback that it helped a lot of Realtors actually understand how a short sale offer is substantiated.

We actually did an entire video version of the show. Perhaps it may help you understand how an investor who is actually interested in making money in this economy assumes that the agent is working with the same goal in mind and how a good short sale offer is generated.

Here's a link to the video.

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Ambassador
464,956
Stacey Smith
Keller Williams Realty - Aliso Viejo, CA
Your Orange County Beach Cities Realtor

Definately agree with you a true investor for one looks for good investments and if it is they will pay what that particular investment is worth will not try to low ball the deal.

Apr 11, 2010 06:07 PM #1
Rainer
407,272
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

I think we can thank the media for some of the lowball offers. I have had buyers mention seeing on TV how people are buying houses for pennies on the dollar and when you explain that is in certain areas they look in disbelief.

Apr 11, 2010 06:41 PM #2
Rainer
51,510
Real Estate Investing |Real Estate Investment
| Real Estate Radio USA - Fort Lauderdale, FL

Thanks Randy and Stacey for your comments. I just wish more agents would avoid the immediate knee jerk reaction and actually look at the validation behind the numbers and then there would be a much truer understanding.

Apr 12, 2010 12:21 AM #3
Rainmaker
266,830
Jim Gilbert
Keller Williams Fairfax Gateway - Manassas, VA
The Gold Homes Team

Our business has many "numbers games."  You have to talk to so many leads to get a prospect, etc.

Many of the activities we engage in as agents have a probability of success that is finite, on the order of 5-10% and still worth doing.  Examples include many kinds of "farming" lead generation activities.

There are also other activities that have higher success rates, but are still not consistently as high as we would like.

I am working with a seasoned, professional investor. This is her team's full time job. She uses more than one agent in every area in which she works. She increases the volume of deals she gives agents depending on their success.  I suspect her numbers gave is that she hopes to get 5-20% of the offers she writes accepted.  I realistically hope to get 50-85% of the offers I write accepted. 

I understand her, she understands me. She represents good business for me. She does not make offers for pennies on the dollar, but she doesn't make offers for 95 cents on the dollar either.  She has real money. I have ratified contracts for her pending closing now.

On the other hand I will simply not work with any flipper whose business model does not involve adding real value to the real property. Simply changing the name on the deed is not adding real value.

Nor will I work with someone who wants to make cash offers but cannot produce proof of funds other than flash money or hot money.

 

Jan 14, 2011 02:36 PM #5
Rainmaker
266,830
Jim Gilbert
Keller Williams Fairfax Gateway - Manassas, VA
The Gold Homes Team

My short sale sellers direct me in writing not to present short flip (flop) offers. If they won't I won't list.

Real investors add real value.

I fear that I have commented on a posting from someone offering to train folks in how to short flip.

Neither I, my broker owners, nor their title company are interested in furthering the career of anyone in the short flip business. 

Jan 14, 2011 02:41 PM #6
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