I am fresh out of college, just got a job & am not desperate to buy a home since I still live at my parent's house for free but want one eventually. If I submit about 1,000 low-ball offers a month on different homes that I am interested in(20%-50% less than asking), using desperate real estate agent/s, will it cause any legal or any other type of problem for me? Will it cause any problem for the agent? I am thinking eventually one seller will be desperate enough to sell it to me at a huge discount. What do you think?
2007-05-19 12:16:33 · 13 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You will not gain any loyalty doing business this way. Your best bet is to engage the services of an experienced Realtor who works with investors.
What I do is identify properties that may be distressed, or are REO's and I look at the property for my client. If it is a good candidate, then I know there is likely to be multiple offers on that property. I turn my client to the listing agent for representation so my client is able to have a higher percentage of successful accepted offers.
Then we fix and flip....I make my commission on the back end while I have every agent within 100 miles calling me when they have a "deal". It's to their advantage to work with me because of the way I do business (they make more money).
I would not use a "desperate" Realtor; and nobody, not even the most desperate of Realtors will write 1000 low ball offers for you. You would be red-flagged and so would that agent.
Be smart and do business ethically.
2007-05-19 12:34:56 · answer #1 · answered by carmensellsthehighdesert 3 · 0⤊ 0⤋
First off, when you submit an offer, you are required to put in a deposit, typically at least $500. If you have 100 - 1,000 low ball offers in, you sure have alot of liquid assets.
Next, if you just got a job and are living at home with your parents, do you have good enough credit to qualify for a home loan? This is something to give consideration to.
And finally, no agent is desperate enough to work with someone like you. We all have phones and know people in other offices. Word spreads fast when there are potential sponges of time and resources lurking about. And for the suggestion that you work with the listing agent, that is risky, they are there to represent their client, the seller - not you.
What you are suggesting is probably more suited to the FSBO market. You have a better shot of getting an accepted offer from a seller there.
2007-05-19 20:15:54 · answer #2 · answered by godged 7 · 1⤊ 0⤋
It's more likely that you will overbid on a house which has major flaws that you didn't have the time to research, than you will get a bargain. If you have more than 1 offer at at time outstanding (which you'll have at 1,000 a month), you'll not be able to close on them should more than 1 get accepted. Since in all areas, a 1% or more deposit is required for an offer to be considered, you'll be losing a lot of 1% deposits. Making an offer with no intention of closing if the offer is accepted, could be construed as fraud. If you refuse to follow through with the offer and the terms you proposed, the buyer might have grounds to sue you fror damages or to force your to close on the property. Don't screw around. It's not a way to get a bargain. Just because a property will sell for 20 -50% under the listing price, doesn't mean it's a good deal.
2007-05-19 19:33:19 · answer #3 · answered by squeezie_1999 7 · 0⤊ 0⤋
Local real estate agents will not give you the time or day with this type of activity. You see, agents work on strictly commission basis, and if you continually give low ball offers that they as PROFESSIONALS know will not fly, eventually they will not work with you. Time is money and if you waste their time then you are looking to burn some bridges. In addition, you need to submit a pre-approval letter or a pre-qualification letter before an agent will even take you to see properties. Both sellers and agents must know if you can even afford to buy a property before offers are even submitted. As a Real Estate agent in NY I consider your question to be insulting and degrading for a professional service such as real estate. We are interested in relocating SERIOUS buyers NOT TIRE KICKERS. If you want to waste time putting in offers that probably will be rejected then I suggest that you contact For Sale By Owners instead and waste the time of the sellers instead of professional agents. And, yes, you will damage the credibility of the agent as well as their careers. It sounds to me that you need to go back to college and grow up. Stay at home with the parents until then.
2007-05-19 19:35:40 · answer #4 · answered by ameriphyll 2 · 2⤊ 0⤋
The only real downside is if two or more desperate sellers accept your offer at the same time. Submitting that many, there would be significant overlap where multiple offers were open.
The other thing is that after awhile of this, the local realtors will get to know you and won't be willing to talk to you.
2007-05-19 19:32:10 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Do not submit more offers at one time than you actually want to buy at one time.
Always put in a time limit for the Seller to accept.
BTW, I don't think you're going to do yourself much good looking for desperate realtors. You want motivated Sellers. People that have had their house for sale a long time, or who have already bought another house, for example. The fact that the realtor is hungry doesn't mean very much.
2007-05-19 20:16:30 · answer #6 · answered by open4one 7 · 0⤊ 0⤋
I think it's a great idea. No need to even use a realtor. You can download a free purchase offer from the internet and modify the numbers and adresses for each of your offers. Target for sale by owners since they will be your best bet for accepting a low ball offer. If realtors are involved your chances of having someone accept one of your offers is GREATLY going to be reduced.
Do some online research in your area for homes that are:
For Sale By Owner
Assist To Sell
Both these options will get you numbers directly to the owners of hte properties. Your offer can be as simple as a phone call to the owner. If he thinks it's a rediculous offer just let them have your contact info and tell them to give you a call if they change their mind.
You will get a great deal sooner or late.
Best of luck to you.
2007-05-19 19:24:29 · answer #7 · answered by Chris Burns 2 · 0⤊ 0⤋
No doubt about it... YOU WILL hit one this way!! BUT - Do yourself a favor. Do it yourself, and submit it to the listing agent. He/she will automatically go to work for you because they get double commission that way.
DONT use a buyers agent. Write these offers yourself, and watch as the sellers move to work with you on a handful of them. Using a buyers agent will only hurt your chances. Why? because the buyers agent will do something wrong because they believe that you are a time waster, and your efforts will be for nothing.
Trust me, if you write a thousand offers yourself, you will win this lottery probably.
2007-05-19 20:03:19 · answer #8 · answered by jasonross1234 2 · 0⤊ 0⤋
Don't be a wise guy.
1. You can only make one offer at a time.
2. Also you will have to give a deposit of $200-500 with each offer.
3. They will have to qualify you before they can submit an offer.
4. they also will not entertain stupid and frivolous offers
2007-05-19 22:57:34 · answer #9 · answered by kenneth h 6 · 0⤊ 0⤋
you definitely can and i do not think it will hurt you legally, you may also find a desperate home seller (its not the agent you want desperate they dont make the decision) it doesnt hurt to try but you also have to keep in mind if they are not selling house because they absolutely have to then they probably wont give in.. here are some buyer and seller tips maybe they will be useful to you..
http://www.timmdelaney.com/PageManager/Default.aspx/PageID=1988346
2007-05-20 01:54:07 · answer #10 · answered by Pure Genius 3 · 0⤊ 0⤋