A buyers agent may decline to write an offer, and simply refer the buyer to another agent.....essentially firing the client. If the buyer agent writes the offer, then, yes, he/she MUST deliver the offer.
I would tell a buyer to find a different agent if I believed that buyer was not serious and expressed an interest in writing ridiculous offers. There may be some agent who is willing to do that, and that is their choice.
On the other hand, if Felicia is willing to write, transmit and present any offer no matter how low, she is welcome to have fun with it, but please don't overstate an agents obligation to be or to look foolish.
What an interesting question, especially in this market. An agent doesn't set the price for a buyer, the buyer sets the price. So, the lowest price an agent will offer on a property is the price the buyer wants to offer.
But there is always an agent out there that will present these low offers, and buyers that will try to sue an agent if the agent does not do what they want. In our area there has been an unusually high number of complaints from buyers.They were mad that agents would not present offers that were almost half of asking price.I just had such a client.I refused to waste time with him.I provided him with a market analysis to show him what homes in the area sold for, and he also had a home inspector look at the house, which the inspector said was in excellent shape, and the buyer still tried to offer half the asking price.
I always ask Buyers if they have a certain "real estate guru" they follow. Or, "Do you watch a lot of late night TV? What ads do you like?" I think you know were I'm headed!!
We had a newbie Realtor/Agent I advised to meet with a prospective Buyer to pin him down as to his wants and strategies. She didn't do this but started immediately showing him property; she was intimidated by the price point of $1,000,000+. She just saw the BIG PAY-OFF!
Two weeks she showed him properties. He finally found one he wanted to offer on. She advised they meet at the office to put togther the offer. He said O.K. but next morning said something had come up and could she come by and pick up his offer "outline" which she could write up and fax back for his signature.
He met her outside of his home, handed her an envelope and jumped into his car shouting over his shoulder, "Write it up and fax it back to me!". She couldn't contain her excitement and as her $1,000,000 buyer sped away she eyed his "outline" for the offer. The listed price was $1,100,000, the property a historic Victorian Mansion. His offer, $400,000, no money down, owner to carry 100% for 10 years, interest only at 4%!!! Seller to credit Buyer 3% for closing costs!!!
She called him back and asked if this was a joke? He said he was very serious and if she didn't want to help him then he would find some one else! She fired him!
I agree with both Felicia and Jim. I will present very low ball offers but not a rediculous low offer. However, the reason why a buyer would want to make an offer on a house is to actually buy a house, so it would not make any sense for a buyer to present a ridiculous low offer anyway.
On the flip side, as a buyer, you have all the right to choose a realtor who is willing to write a one dollar on a million dollar listing.
It depends. The Realtor will do a market analysis of sold properties in the area and determine what the current selling price is, taking into consideration special features, upgrades, sq. ft., location etc.
The offer could also ask for the seller to assist with closing costs. Make a reasonable offer if you want the property, otherwise you could offend the seller and he may reject the offer anyway. As much as you want a good, deal, so does the seller. Fair is fair in any situation.
Hope this helps.
Now you did it. You got us agents talking to ourselves!
I just want to make a quick comment on Michael's story, I was surprised the buyer didn't include "subject to the mortgage" in his offer"
JD â€œDanâ€ Weisenburger, GRI
Vanguard Realty, Inc. GMAC Real Estate