Thanks to my Active Rain Friends for getting into this Fantastic Discussion. That is why I am a member of Active Rain and Honor Everyone for their own diverse views.
Amazing but true. When the Foreclosures Eeek onto the market and we are blessed to be presenting one for the bank - the calls, in this "Sellers" market in Southern California, are off the HOOK!
We do our best to answer each and every call - or at least give a call back to the agents calling. We do keep the MLS updated on an hourly basis - but it is nice to speak with someone over the phone about a property your clients are interested in - I understand that - we have Buyers Too!
So I am nice and do my best to give the most information without tipping my hand with regard to the offers that we have received.
But ask they will - beg and plead - I understand that as well. But If I am saying it is against my code to let you know what offers we have and where the client that the other agent is representing would have to write to secure the property - I am going to stick by my guns and maybe hang up the phone if pressed too hard or if the conversation turns ugly.
We don't even like representing the buyer at a foreclosure/REO that we place onto the market. Too much question and wondering by the Bank. I inform the callers of that as well. Now, if they are not really wanting the property they called about and want me to do some hunting - then I am for that.
Why would an agent play the Evil Game and reveal what offers he is holding and screw each and every other agent that wrote an offer on that Foreclosure???
(I guess I know the answer - but don't they consider that ultimately it will catch up with them?)
Posted by Connor & Paris MacIVOR - Realtors Santa Clarita California Real Estate on 04/30/2009 11:55 AM
I read a post this morning that may hold the answer to the question. Maybe it relates to 'cocky' new salespeople. It is possible that desperation comes into play as well. Desperate situations and the need to get paid takes its toll in the marketplace. Or maybe I have no idea what I'm talking about :)
Great post. I promise to never show you my hand or ask to see yours :)
11:58am • #1
I don't reveal the other offers, either. If asked, I will let the agents know how they rank against the other offers, but I don't give up the ship. Yesterday, a seller who has received 15 offers told me a couple of the agents were pressing her as they showed their buyers. The seller is often at home during the day. Two actually begged her to please disclose how high the offer has to be. I was shocked at such unethical behavior. It's rough out there, but that's no reason to be unethical. She refused, of course.
12:06pm • #2
Connor....we are experiencing the same stuff here in Phoenix as well. The level of professionalism of some agents as gone by the wayside. think what TLW says is partly true... desperation and not making many sales this past few years.
We do let agents know there are other offers but not the specifics.........they know we can't do that! But they try. Haven't had too many really ugly ones yet. Have had several flat out lie to us. That was interesting. I just don't have the time or energy to follow thru on that kind of behavior. This type will most likely not be in the biz all that long. We can hope!
12:31pm • #3
I think the bank owned homes and their agents have taken on a whole new look at it's not pretty. Last year I sold roughly 10 bank owned homes and was probably told about the other offer including the number and what might be a good offer for my clients to write. I think the mentality has become that the bank is not a "normal" seller so agents don't have to play by the same rules...a very slippery slope
12:59pm • #4
This will happen in any market you are in. I live in Bozeman MT and it is happening here. I have dealt with this and it can be disheartening, you can't believe how the agents will push and prod info out of you. You just have to stand strong and do the right thing.
1:00pm • #5
15 offers on one property? Where are you--I need to move to your neck of the woods!
I hate when another agent asks me to let them know if anything comes in. I had one last week who showed the house twice, then asked that question. i told her the property has been shown several times, and that if her buyer is interested they should make an offer as I could not guarantee they'd get a heads up.
She acted pretty insulted at this. But recently we had a buyer say this, and an incredible offer came in with price/terms too good to turn down. I called the seller and she took the deal immediately. When the other agent found out they were livid, as they had asked for a heads up and didn't get it.
In my book, anytime a buyer is interested, consider it a heads up that you could lose it if you don't write it up.
2:14pm • #6
TLW - Was that Shotgun you countered on the offer a .410 gauge? - sorry I was distracted by that Video ... LOL - But I am sure you are right, some of the agents we are with out here knew someone and went from zero to hero, not knowing how to massage a "Real Real Estate Business", building it from the ground up... My BEST to Brother!!!
Elizabeth - Thank you - I guess it equates to satisfying hunger at any cost...
Anna - I'm with you - it has been quite a ride thus far...
Barb - True, I also think some of the agents that are "friends" of the banks ar
e relatively new but had contacts???
Marc - that is great advice...
Erica - Southern California - we are spoiled, and I acknowledge it and am very thankful... Come out and I'll buy the first round... I know a lady in Florida that makes Mojitos and knows Jeff Turner... LOL
2:35pm • #7
We are seeing multiples on every offer. I work with buyers and its tough to know what to offer and to get the buyers to offer high enough. I don't hound anyone to know what the other offers are. However, I wish I could know. Think Auction and highest bidder!
2:59pm • #8
I had to come back and answer that question. The gun is a 20 Gauge Remington 870 Express. They make them for small people. Every other shot gun I've ever used knocks me on my butt :)
3:09pm • #9
I have been on both sides and like to get the most for my seller but I will generally give a round-a-bout answer. We are seeing properties bid up by tens of thousands. If that is what is going on, I would like to spare my buyer who is only qualified to offer the asking price....
3:31pm • #10
Here in Bartlesville, Okla we dont have many REO or short sales. I hear the paper work is ungainly and takes forever to process. Horror stories abound about the mess foreclosed homes can e to sell. Correct me if I am wrong. Thanks.
3:33pm • #11
Here in Arizona we have had up to a couple dozen offers on a single property -- and we do not revel what the other offers are to agents who ask.
3:34pm • #12
Very interesting.. Never give actual details.. only that you are ina multiple offer situation and to bring the highest and best offer possible.
4:43pm • #13
Wow, I wish we were seeing multiple offers in Spartanburg, South Carolina.
5:26pm • #14
Updating the MLS every hour, Connor? Yikes, you must not have your REOs long enough for the grass to grow back! What a great problem.
5:37pm • #15
Off the hook? Who are these people and where do the come from?
5:49pm • #16
I don't know darren. But I'd love to unhook some of them.
5:56pm • #17
I am the underdog here as for popular opinion and accept that title; as the seller's agent it's my responsibility assist the seller understand the best terms and highest probability of close. The highest price isn't necessarily the best route. I'm open and honest with all the agents I work with. With me there's no guessing and no hidden strategy.
My price opinions are to sell in 30 days if a seller is unrealistic with pricing I let them know the property will sell within the recommended price range; it's up to the seller to decide when they want to accept that price range - this month or in 2-3 months? If they are priced appropriately for the market they can be certain that their home will sell for the best terms.
From the buyer side I explain that they need to approach their home purchase knowing that this may be their one and only opportunity to purchase this property. Put your best offer forward in the beginning. If the buyer is disappointed because they lost a house by $1000 then they obviously didn't write their best offer.
I explain to all of my clients that my approach to real estate is honest and transparent; this is a simple exchange - the best terms - I notify all the agents in a multiple counter situation what the terms are and to put their best offer forward. The best terms will be selected any others may hold back up positions.
From the buyer side I go over the value of the property and assist them establishing a price best suited to meet their monthly goals within the recommended value range for the property- if the monthly investment exceeds their level of comfort, they need to consider that the home is out of their price range. Buyer's are often disappointed because they go into the tr
ansaction with unrealistic expectations and end up either in contract for more than what they really should spend or writing on home after home... I'm in the business of fair market value with as few contracts as possible otherwise I'm working for $10.00 by the time the escrow closes.
I make it clear that I don't write lowball offers to see what sticks and am not one who haggles to squeeze every last dime out of a buyer. I'm responsible to assist the parties of the contract to understand the value range and help buyer/seller comprehend the terms of the purchase agreement and disclosure compliance.
6:15pm • #18
We have the same problem down here in South Florida. I have 5 offers on a short sale. The property is in back up status, but I still get showings and offers. I am now telling the other agents not to bother at this point we have enough offers. They do try to see where they stand, and I will let them know that the offer is close to list price, which is very close to market value, at this point. Good to see the market has picked up.
8:24pm • #19
I think, and of course this is just my opinion, the banks should reveal where the offers are at. I think it can help them get the best price possible, and keep it open, so everyone has a fair chance. They should then get a chance to up their offer, or stay where they are, depending on how the buyer feels. That would be nice, but I don't know if it will ever happen.
8:33pm • #20
I read a post a while back from ??? which listed, as one option, to reveal all offers to all buyers' agents and then ask for the best and final offer. Great post.
9:36pm • #21
South Florida is tough, it's hard to get a hold of the agents that have REO's listed. If you need to reach them on weekends you might as well forget about it! Not all of course, but most. Also, every time I want showing instructions & do get an agent they always say the same thing "an offer has been accepted" then why doesn't it show as PS? I get very frustrated & my buyers are also feeling upset. We are always looking at multiple offers and always listing price or better, which makes sense due to the fact that my market has tanked & prices are low enough, finally the buyers are realizing it! If you don't have a good offer you will be left behind.
:07pm • #23
Usually we aren't told details of other offers. It is nice when we are let know that they have multiple offers "above the asking price" and things to that effect if the home was low-ball listed, so I can relay that type of information to my clients and they can decide whether or not they are still interested before we write up an offer.
Of course, you try and take other agents at their word, because they do have a duty to be fair (i.e. not outright lie), but you sometimes wonder if they are really telling you the truth, or playing some game with you.
As you said, on both sides of the table, you can only mess with people, their clients, and their client's offers so many times before it comes back to bite you.
11:09pm • #24
People complain and moan about REO agents here but with the garbage they deal with, it's unreal. I do have a little respect for other agents like that!
11:37pm • #25
It's amazing that so many people still think we're in a typical buyer's market. Multiple offers, over listing price on well-priced properties is becoming the norm in some price ranges in Orange County.
11:46pm • #26
Bank owned properties are also receiving multiple offers here and if the buyers know there are other offers on the table and they want the property then they had better bring their best offer.
12:23am • #27
Hi MacIvor --- love that name --- I have a different take on this than most. When I am representing the seller, even a bank, my job is to get them the strongest offer possible which includes price, terms, financing, etc.
In multi situations... I present all the offers to the seller, we choose the strongest 3. Then I call each of those 3 agents and thank them for their offer. Next I use exactly the same verbiage, "Your offer is one of the final 3, the top price is $355,900 (for example) and (I tell them the top price) and the terms are strong. We will accept another offer from you until ______ pm on next day. If you choose to make another offer, please come with your highest and best." That is all I will tell them, no matter what other questions they ask.
Then we wait until after the deadline and the seller accepts the final offer. Seems like a professional way to get the strongest offer and has the cleanness and finality of an auction.
List and Sell (we're not back into the days of multiple offers on every listing yet)
Gary @ RentonHomeFinder.com
12:46am • #28
want multiple offers? Simple, price according to the market, not what your or your clients want the property to be worth. And disclose offer prices...please.
1:13am • #29
Agents try to get the information because there are listing agents out there that will give it up. I refuse to tell when I am the listing agent, but when I represent the buyer, I always try to find out as much as possible. If an agent can't keep their mouth shut, then I know right away they are a weak agent.
7:52am • #30
We don't get into many multiple offer situation but I wish we did. Lot's of good comments and a great post.
7:56am • #31
Interesting post, unfortunately we aren't in the "multiple offers" sistuation here in The Live Free or Die State
Patricia Aulson/Portsmouth NH Real Estate
8:59am • #32
We are in a multiple offer market for clean turn key homes. One listing agent let it be known he had an offer forty thousand dollars over list price. My response was so what if the appraisal doesn't come in? Deer in the headlights moment. He had no response, but the next time I spoke with him, he didn't remember me, and this time he stated it was an all cash offer. So was he telling the truth? Was he trying to get highest and best for the Bank? Not sure, don't care. I asked my buyer what he wanted to offer and I wrote the contract.
There are a few agents that are getting the majority of REO's in our area. We have allot! This is not sour grapes, but I did notice they have many times put on the sold MLS that the selling agent was OUT OF THE AREA. I don't know how they get away with this, but I am pretty sure in was an in office deal. I will no longer show their listings to my buyers. It is not worth my time or my buyers frustration.
9:27am • #33
Hmmm, well I've heard stories/situations before too on multiple offers and the whining is just horrendous! That's what it really is, whining. Agents seem to be transported back to 2nd grade when they want the answer to something. Very unprofessional, but they don't care as long as they think they can get inside info 'to win'.
11:06am • #34
Tere - You make a strong point; if the agent is not acting ethically and represents misinformation to get the highest price - that's not cool. If an offer was presented clearly above the appraisal that is not an offer that could be considered best terms for the seller - how could the buyer possibly perform at a price above the value unless they truly love the property and are coming in with a high down payment.
In multi-counter situations I disclose the terms to all parties involved, fair and ethically to achieve my goal - best terms for the client. I wrap up the transaction in the shortest period of time and don't play the haggling game. Having been in the business for 21 years I don't consider myself to be a weak agent.
11:13am • #35
I remember an agent "confiding" in me about the higher offers she had from others. Well my client said forget it and we walked away. Then they call us and tell us we have the highest and best offer.
11:40am • #36
Great Post Paris! I will tell you that so many agents in our area have lost out on properties at the last minute by agents about an hour from here that our brokerages have been reviewing transactions to determine how many properties were sold by an agent under the lead agent's 'team' and not by a cooperating agent in the area.
Our offers have gone unanswered and somehow a month after a good offer is submitted, we're told, 'oh that sold' and it's an agent in the same office (and often same team) as the listing agent.
I feel exactly like you do. I wouldn't represent buyers on my listings during the height of the market for the very same reason. I never wanted to have the Board question my ethics or motivation so I always referred buyers out.
11:47am • #37
Gary McNich wrote: .."my job is to get them the strongest offer possible which includes price, terms, financing, etc. In multi situations... I present all the offers to the seller, we choose the strongest 3. Then I call each of those 3 agents and thank them for their offer. Next I use exactly the same verbiage, "Your offer is one of the final 3, the top price is $355,900 (for example) and (I tell them the top price) and the terms are strong. . . If you choose to make another offer, please come with your highest and best." That is all I will tell them, no matter what other questions they ask."
I believe Gary has the right idea. As a seller I would certainly appreciate getting a higher price. As a matter of fact I might even encourage more than one opportunit
y to increase a price. And as a buyer I would like to have the opportunity raise my bid. No one is forcing anyone to bid higher, but it is good to have choices. And, it might help to allay concerns that some listing agents take advantage of their inside information
12:45pm • #38
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