Home Selling in 48302>Question Details

Stevie, Home Seller in Bloomfield Hills, MI

Seriously??? An offer without ANY EMD, OR preapproval letter. SERIOUSLY. WHAT IS GOING ON????

Asked by Stevie, Bloomfield Hills, MI Fri Sep 5, 2008

Are agents so AFRAID of losing a buyer that they are letting low-ballers go from house to house putting in offers and not making them get pre-approval letters or put down an EMD, not even a small one.

This is very unprofessional and very sad decline in service. Yes, I am happy to get this low ball offer. I can counter and see where it goes. But if Agents aren't going to keep some level of professionalism required of the Buyers the real estate market is going to suffer because of it and inturn the agents.

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Stevie, let your agent know you will not entertain any offers without preapproval, or proof of funds in the form of a bank statement. You used the word "seriously." Well a serious buyer will not balk at producing the paperwork. A home is a big investment. Someone who is serious will go through the motions. Don't be afraid to ask for this standard if it is this important to you.
1 vote Thank Flag Link Sat Sep 25, 2010
Stevie, I am not sure if the person writing the offer is acting as a buyers agent or not, but one thing to keep in mind is that we as agents have a fiduciary responsibility to our clients. If the client insists on writing an offer with no EMD than we must do that. While I would certainly council my buyers on why this might not be a good idea, if they insist that is what I must do.
When you counter the offer request an EMD that is satisfactory to you and also request a pre-approval letter to accompany. I agree with you but just wanted to point that out! Good luck with your offer!!!!
Web Reference: http://www.sonyaloose.com
1 vote Thank Flag Link Fri Sep 5, 2008
Hi Stevie,

This scenario happened to me and my sellers a couple months ago. As a broker, my first thought was this deal will never make it to closing and I need to look out for the best interst of my sellers. In turn, my sellers would not accept the contract until the buyers obtained a bank letter and doubled the earnest money deposit. Sure enough, once we accepted the contract and the double earnest money was put into escrow the buyers pulled out of the deal a couple weeks later, however, the sizable earnest money went to the sellers.

Thanks for sharing your experience!!
0 votes Thank Flag Link Tue Sep 28, 2010
Hmmm...sounds like some have to go back and take a contracts class - and a professionalism class while they're at it.

Why don't REALTORS understand consideration (EMD) is one of the essential parts of a contract? And how unprofessional to present an offer without an approval letter!

Low ball offers are part of the game, but I am not a believer in them. I hope your agent didn't participate or condone these actions. Best of luck in your home sale.
0 votes Thank Flag Link Sat Sep 25, 2010
As a listing agent, I ALWAYS want a preapproval. However, if its a Saturday or Sunday, and they'll be getting the preapproval together on Monday, I will not reject the offer being presented. The best way to handle this would be for your listing agent to inquire 1) Why they don't have one yet. 2) Have they sat down with a lender yet to truly know their price range 3) Require a Pre-Approval as a contingency to the counter-offer being valid/fully executed.

With the market being soft, you don't want to disregard any offer, how ever, you should just insist they get you a pre-approval the next business day. Good luck!
0 votes Thank Flag Link Sat Sep 6, 2008
Hi Stevie,
Your indignation is justified.
In order for you to negotiate in good faith you need all the perameters anf facts. When a realtor allows a buyer to submit an offer in piece meal fashion it can set a seller up for problems.
All the best,
James Joseph
The R/E Maven
0 votes Thank Flag Link Sat Sep 6, 2008
Are you seriously putting all agents in the same "boat"? There are good agents and bad agents.... your agent is obligated to present all offers to you and explain the strength of the offer when he or she presents the offer. Don't lump all agents in the same category.
Web Reference: http://contact4homes.com
0 votes Thank Flag Link Sat Sep 6, 2008
Good morning, Stevie.

It is true that the procedure manual seems to be re-written a bit with a number of things going on in our industry, especially in Michigan. However, it is still the Agent's job to manage expectations and get Buyers to a reasonable level. By law, we have to present any and all offers ... but there is no law that says we must represent the unreasonable...

Your Listing Agent was doing what they had to do ... hopefully they can educate that prospective purchaser into seeing what a decent and reasonable price for your property is. Regardless of, "low ball," or not, no EMD and no preapproval has NO excuse...
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Sat Sep 6, 2008
Stevie,

Clarify the issue with your agent and have him/her post on the MLS that you will not entertain offers without an EMD.

You just might be starting a trend that deals with the problem.

Thank you for making this point,

The "Eckler Team"
0 votes Thank Flag Link Sat Sep 6, 2008
Keep the house. It's not a good time to sell your house. Good Luck.
0 votes Thank Flag Link Sat Sep 6, 2008
You said the listing realtor wrote the offer. so, he or she must be a sellers agent or a disclosed dual agent. Hopefully that was disclosed to you. I agree and understand wht you are saying regarding the professionism and practices of today. I have been a realtor for over 23 years and never have seen the stuff I am seeing today. Nothing like we have been trained. Most realtors would explain the benefit to the buyer of having a pre-approval and a good EMD -helping the seller feel more comfortable about taking a chance. Perhaps this offer is just a "feeler" a test to see how motivated you are, I'm not sure. In any case, I believe a counter offer is in order with YOUR terms.
Web Reference: http://www.HOUSEMAVENS.COM
0 votes Thank Flag Link Sat Sep 6, 2008
Stevie I totally agree with you about the professionalism . I'm from the old school and try to qualifiy my buyer clients during my buyer consulation (yes I still do them). Then try to get them fully approved with a mortgage lender I trust - Before we make any offers. Problem is these days many buyers come to us saying they are "pre-approved " and then their mortg reps pull the "Privacy Act". But we still always get the letter.

As for the EMD another problem we are seeing too. It was easier getting the check before the offer presentation, when we could meet with the seller and agent to present the offer. Mostly because we knew everything would get wrapped up fast. However, today it can take days before we get an answer, so we are saying check to be deposited upon acceptance. This makes it easier on the bookeepers, especially when there are multiple offers and the checks need to move from house to house.
0 votes Thank Flag Link Fri Sep 5, 2008
The person writing the offer is my listing agent. I get what you are saying. But in the past I don't think this would really have been tolerated. I think back to when I bought my home, put down 10,000 EMD with my INITIAL offer and my agent declared that was not enough. I told her that was all there was going to be.
0 votes Thank Flag Link Fri Sep 5, 2008
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