Home Buying in Wimberley>Question Details

Tanya Rhodes, Home Buyer in New Braunfels, TX

Does an agent have to present an offer to the seller even If they think it is to low?

Asked by Tanya Rhodes, New Braunfels, TX Sun Jan 26, 2014

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If, as you shared below, the "seller's agent refused to present" your (written?) offer, then YOUR agent should have known what to do - not just run back to you and say the agent refused. Your agent could/should have reached out to the listing agent's Broker and asked him or her to intervene. Even if your agent knew it was a waste of time, the offer - even as a back up - should have at least been brought to the seller's attention. Another point that might be helpful to you moving forward - did your agent offer you a market analysis for this home? If not, how did you arrive at your offer price? Homes near me, on average, are selling for 96+% of their listed price, so an offer 9% below would indeed have little, if any, chance of being considered. Making an offer that at least has a chance of being accepted, or will encourage a counter offer, would be in your best interest. Best wishes......
1 vote Thank Flag Link Mon Jan 27, 2014
Yes, ethically an agent must present all offers. It is not the agents job to make the decision if the offer is low or not. That decision is made by the Seller.
1 vote Thank Flag Link Mon Jan 27, 2014
Tanya,
An agent's job is not to decide for anyone and unless Texas laws & practices are different, all offers must be presented. Now, sometimes it can be as simple as a phone call saying, "I have an offer and it's $50k below list price, do you want to see it" to which many seller's would say, "No".
Not all presented offers are formally responded to. A very low offer may receive a response of "no response".
I've done this and when the buyer's agent calls me, I tell them "thanks for taking the time to write an offer and for your clients interest in the home. We are electing not to respond. If you would like to amend the offer closer to the terms we've indicated, I'll see what we can do."
I believe there is no point in offering someone who makes a ridiculously low offer any concession, unless or until they are willing to come back with a more serious offer.
Everyone does it differently, but if you didn't get a response it doesn't mean it wasn't presented.
1 vote Thank Flag Link Sun Jan 26, 2014
Thank you and I agree
Flag Mon Jan 27, 2014
In NJ all written offers must be presented.....and............ who is an agent to decide if it is too low? We're just the middlemen - ultimately, it's the seller who accepts or rejects an offer
1 vote Thank Flag Link Sun Jan 26, 2014
That's a good question.. anyone on this?
1 vote Thank Flag Link Sun Jan 26, 2014
Great question!
An agents duty is to their client. If the agent has shown you the comps and the best price to offer, based on the facts they have in his/her expert opinion and you still want to make a lower offer then it is the duty of the agent to present the offer. it must be in writing, along with proof of funds for a cash offer or a letter of approval if a loan is involved.

There also needs to be an earnest money check made out and ready along with option money check prepared if the offer is accepted. Time is crucial in any situation where you have made an offer, it is accepted and now the ball is in your court and your agent to get all docs, checks etc to the right place in the right time frame.

The wrong thing to do is to ask an agent to call another agent and see if they will take x number of $ for a property. Put yourself in the sellers shoes. Too many times people want to negotiate verbally so not to do the paper work. This is unfair to you and unfair to the seller, and it doesn't work!

9 times out of 10 while you are chatting on the phone back and forth or email, a real buyer has sent over a contract, proof of funds, copy of checks and grabs the property out from under you.

Do it right the first time!
0 votes Thank Flag Link Wed Jan 29, 2014
Everyone has been a great help. Thank you and I think we know what to do now.
0 votes Thank Flag Link Mon Jan 27, 2014
good luck!
Flag Mon Jan 27, 2014
I want to thank everyone for their help. We are virgin buyers and I hope to find the right one so I never have to go through this again.
0 votes Thank Flag Link Mon Jan 27, 2014
Best wishes to you and as previously stated; a good agent will present an offer even if the seller has previously said, " We won't consider an offer below...." however, the reality is if you have a seller who is extremely picky etc. it can be difficult. Your agent can always request that something be provided back with a seller signature stating the offer is rejected.
Flag Mon Jan 27, 2014
Tanya in Texas, ----
Yes, a REALTOR is obligated to present all offers to the owner, regardless of what words the agent uses to suggest a buyer to think carefully before plopping down a dirt-ball offer.
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Even in the case when the owner says, "Don't some me any offers below, 5,611,381 dollars. A prudent agent will make the seller aware of all offers. The offer they are tempted to squash will be the one that bites them.
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This is in no way a note that suggests a dirt-ball offer has a chance greater than a snowballs chance in Florida, of success. The result could be ABSOLUTE SILENCE. The seller nor the agent is obligated to make any response what-so-ever. The agent however, who chooses to be the instrument for delivering dirt-ball offers may encounter residual issues. There just may be a few more dynamics in play that meets the eye.
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All agents welcome offers, especially from folks who have no professional representation. Of course you won't get the house, but the benefits derived are significant.
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Tanya, what program are you following from which your low offer is derived?
0 votes Thank Flag Link Mon Jan 27, 2014
This is a back up offer on someones pending offer at that.
Flag Mon Jan 27, 2014
It isn't a dirt ball offer but it is about 9% below the asking price. We are working with a realtor but the sellers realtor does not want to present our offer.
Flag Mon Jan 27, 2014
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