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Old 08-06-2007, 09:58 PM
 
1,174 posts, read 6,065,071 times
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This is just a question that's come to mind after watching some of these real estate-related shows on TV. Don't you just hate it when someone brings those darn shows up?

Anyway, one of them shows the buyer's real estate agent presenting the offer to the sellers and their agent. This is a foreign concept to me. I sold a bunch of different properties in a couple of states and have never once had the buyer's real estate agent present the offer directly to me.

Does the happen, or is it the rule, in some states. I can't imagine it being the law, but maybe some associations have set this as policy. I just don't know where they might be located.

My question comes from my understanding of what a real estate agent does for me. In part, I hire them to insulate me from the day-to-day duties of marketing a property. They also isolate me from the buyers, who I prefer to not talk to, and from the other real estate agent who I certainly don't want to talk to. My agent knows what to say and I don't want to say something that's inappropriate or gives away something of my position.

Then when an offer comes in, I expect my agent to receive it from the buyer's agent. Again, I don't want to give away anything to the opposing party (buyer's agent and the buyers), either in word, expression, or deed. I only want to discuss and show my cards to my agent who is responsible soley to me. The other agent is obligated to send any salient information, received either through sight or sound, back to the buyers.

So, if it's common in your area for a buyer's agent to present the offer directly to the seller, have you ever had a seller refuse to see you and instruct that the offer be presented to their agent? Under that circumstance, do you comply to try to force the issue? I know for me, there would be no way to force the issue, but luckily I haven't been presented with the situation since it's not the practice anywhere I have sold a property.

BTW, I'm also the guy who throws away any letter from the buyers, presented with the offer, without reading it. You know, it's that letter that some buyers write to try to gain sympathy from the seller. It means nothing to the seller and actually works against their best economic interest. The bottom line is the money and the buyers ability to perform. Beyond that, there is nothing else IMO.

Thanks for any responses.
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Old 08-06-2007, 10:23 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 31,889,690 times
Reputation: 2661
Well the standard practice in Nevada is that the Buyers Agent gets to present the offer to the Seller unless the seller has previously requested in writing that the Buyers agent not do so. Sometimes the request not to do so maybe signed after the request...but that would not be quite ethical would it...then again the seller is not bound by Realtor ethcis either...hmmm.

Anyway if I have a good story that our price is fair and the seller is out of line and the lsiting is aging and I think the timing is right you can bet I will request to present my offer. Most sellers agents will go along. They want to sell the place too. I will do a full 10 or 15 chart or power point equivalent presentation. I had one where the seller fainted...then came back to consciousness and took the offer.

It is by the way a rare event. It generally means for one reason or the other I think I will do better than the sellers agent in getting the seller to consider an offer. One time in twenty maybe.

If you ever see one Garth you will like my pitch...Works of art from a 30 year spreadsheet queen.
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Old 08-06-2007, 10:23 PM
Status: "Springing back" (set 26 days ago)
 
Location: Montana
2,203 posts, read 8,096,949 times
Reputation: 1091
Quote:
Originally Posted by garth View Post
This is just a question that's come to mind after watching some of these real estate-related shows on TV. Don't you just hate it when someone brings those darn shows up?

Anyway, one of them shows the buyer's real estate agent presenting the offer to the sellers and their agent. This is a foreign concept to me. I sold a bunch of different properties in a couple of states and have never once had the buyer's real estate agent present the offer directly to me.

Does the happen, or is it the rule, in some states. I can't imagine it being the law, but maybe some associations have set this as policy. I just don't know where they might be located.

My question comes from my understanding of what a real estate agent does for me. In part, I hire them to insulate me from the day-to-day duties of marketing a property. They also isolate me from the buyers, who I prefer to not talk to, and from the other real estate agent who I certainly don't want to talk to. My agent knows what to say and I don't want to say something that's inappropriate or gives away something of my position.

Then when an offer comes in, I expect my agent to receive it from the buyer's agent. Again, I don't want to give away anything to the opposing party (buyer's agent and the buyers), either in word, expression, or deed. I only want to discuss and show my cards to my agent who is responsible soley to me. The other agent is obligated to send any salient information, received either through sight or sound, back to the buyers.

So, if it's common in your area for a buyer's agent to present the offer directly to the seller, have you ever had a seller refuse to see you and instruct that the offer be presented to their agent? Under that circumstance, do you comply to try to force the issue? I know for me, there would be no way to force the issue, but luckily I haven't been presented with the situation since it's not the practice anywhere I have sold a property.

BTW, I'm also the guy who throws away any letter from the buyers, presented with the offer, without reading it. You know, it's that letter that some buyers write to try to gain sympathy from the seller. It means nothing to the seller and actually works against their best economic interest. The bottom line is the money and the buyers ability to perform. Beyond that, there is nothing else IMO.

Thanks for any responses.
I'll respond to your last statement first. Isn't that just like us realtors, to be bassackward? For a lot of sellers, knowing the buyer and his situation really does matter. For example, a multiple offer scenario from a couple of years ago. I was representing the buyer. As it turned out, ours was not the highest offer; it was the 2nd highest offer. ($10k over asking price on a home that was $50k underpriced - still a GREAT deal.) The owner took my client's offer. Why? The top offer was from an investor looking to simply resell for a big profit. The owners wanted the home to go to someone who would love it.

Next, if I'm representing the buyer, oftentimes I do request to present the offer. (No, the buyers are not there, just me, the sellers and their agent.) I find that I can help answer questions the seller may have about any contingencies, etc. And yes, I often will relate information about why my clients like the house and why they are choosing to offer less than full price (if that's the case, and it almost always is these days). I've found that a lot of misunderstandings can be headed off upfront and the buyers are viewed less as adversaries, but more as the inheritors of the owner's property. Plus if I know some things the buyers are willing to concede on, and if those are things the seller goes off on, then I can quickly say, "You know, I think my buyers would be willing to reconsider that . . . ". After I've presented the offer I leave.

Now, of course, some sellers are just like you, and would prefer to just have the buyer's agent fax the offer to their agent and then sit down with them to discuss it. That's your choice, and I would definitely respect that. Generally, I ask the listing agent if it would be okay with the seller if I present the offer. Or sometimes I just ask what the seller would prefer. My goal, if I'm the agent for the buyers, is to represent their interests to the best of my ability and to get the offer accepted and the transaction off on a positive note.
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Old 08-06-2007, 11:47 PM
 
1,174 posts, read 6,065,071 times
Reputation: 1064
Thanks for the fast responses, olecapt and Gretchen B! You guys speak (write) so well. Your explanations give me some insight into why it's done, but they also confirm why I'll never ever allow the opposing Relator to present an offer.

Olecapt, that's interesting about Nevada. Now that I own a home in the State, I see there's something I will need to anticipate if I ever sell. I know I won't sign a form dictating the way an offer is presented during the listing appointment. I could see it as having a chilling on any offers. However, if an offer comes in it will be a simple thing to direct my Realtor to accept it in my stead. I'm the boss, not the opposing Realtor, and since it's only an issue of "standard practice" instead of State law, there's no standing for forcing it on me.

Olecapt, let me add that I hope you don't take my statement personally. I enjoy much of what you have to post on this board and appreciate you willingness to help. I just wouldn't want to faint during your sales presentation . . . actually, I think I would be more likely to simply close the door with a "Thank You, we'll get back with you," after the offer was handed to me with the words, "Here's my client's offer . . . ."

Gretchen B, the scenario you described about the couple who took the lower offer is interesting. Personally, I see them making a mistake because of their emotions. They left money on the table to the benefit of the buyers and damaged themselves. I guess you could tell which offer I would have taken had everything else been equal.

I guess it comes down to how a property is viewed. You used a word like "inherit" when referencing a house. It shows a very kind and feeling approach to real estate.

In my case it is the people who make a home, not the house. Once a house is on the market, it's just a commodity like anything else. I don't pass it on to someone else. I don't inherit it from the previous owners. It's nothing more than a business transaction between opposing and hostile parties. That's why I don't want to see the Buyer's Realtor. She is hostile to my interests in all ways possible so I don't need to see her.

BTW, I don't use "hostile" in terms of an emotion. It just describes the nature of the transaction between two parties with different agendas.

So, it appears that both Arizona and Nevada have this Buyer Agent presentation. I never experienced it in California or North Carolina, as an example of a couple states. It all goes to show that informal standards of practice, real estate rules, and even real estate laws can differ in different states.

Thanks again for responding! I now know what to expect and appreciate the time you took to write.
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Old 08-07-2007, 06:39 AM
 
Location: Palm Coast, Fl
2,249 posts, read 7,784,303 times
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It also happens in Florida. The FIRST offer can be presented by the agent working with the buyer. That doesn't mean the seller needs to give an answer at that time, it just means the agent gets to present the offer to the seller, answer any questions, give any explanations. Personally, I've never done it and wouldn't force the issue, but I do have an agent in my office who pretty much insists on making the offer directly.
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Old 08-07-2007, 08:18 AM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 31,889,690 times
Reputation: 2661
methinks the faint was feigned...and it was over the price offered....not the emotion of the presentation.

And many sellers would miss something if they declined. I do a much better job than most at demonstrating market value. Glomping on to the charts is worth the time spent listening.

Data is data...never hostile...
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Old 08-07-2007, 08:51 AM
 
Location: Just south of Denver since 1989
10,563 posts, read 27,957,964 times
Reputation: 6692
I think it's a great idea that the buyer's agent has a right to present an offer in person to the seller and their agent.

So many times I have witnessed the other broker say something or do something that benefits my client.

I am all for it. In fact, I tell BA's that they should present their offer to us...when would be good?

Often, you get a better sense of what is important to the buyer, and what could be successfully countered.

I always present in multi-offer cases...and my buyers are around the corner in their car...just in case.

I counsel my sellers to not say anything...but if they have a question write it down, for clarification. I do not want the BA explaining the customs or the law to my clients. But I do want the sellers to ask questions about the financing, inspection dates, closing dates, contingencies...
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Old 11-12-2010, 03:57 PM
 
1 posts, read 6,043 times
Reputation: 10
Default Buyers agent presenting an offer to seller of real estate

Thank you for your prompt responses.

I am just learning about real estate practice and your comments are helpful.

Thank you.

W. Leslie
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Old 11-12-2010, 07:41 PM
 
Location: MID ATLANTIC
7,442 posts, read 17,018,586 times
Reputation: 7790
I know a Realtor that insists on presenting her own contracts, and she pretty much gets her way. Contrary to the OP's initial claim, it's not always about money. Sometimes, the seller has other concerns, such as finishing out the school year, or, needing to closing quickly, but is willing to rent back until the buyer is ready to move. One just wanted rights to come back for a year to take cuttings from the garden. When I was an in-house LO at her office, I was blown away by her ability to get to the bottom of what the seller really wanted. Many times it was the top dollar, but many times it had nothing do to with the seller's net. And most of the time, she came away with more understanding of the seller's position than the seller's own agent. There's a reason this Realtor owns 3+ offices and has well over 200 agents working for her. And she still has her customer base and customer referrals.
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Old 11-13-2010, 07:23 AM
 
Location: Downtown Austin
5,923 posts, read 14,622,856 times
Reputation: 4755
Quote:
BTW, I'm also the guy who throws away any letter from the buyers, presented with the offer, without reading it. You know, it's that letter that some buyers write to try to gain sympathy from the seller. It means nothing to the seller and actually works against their best economic interest. The bottom line is the money and the buyers ability to perform. Beyond that, there is nothing else IMO.
That may be fine for you, to remain ignorant of the buyer's needs and motivations, but it's a false assumption to think that money and the bottom line is the only motivation for all sellers. I've had more than one seller cry at closing because of the emotion of this "chapter" in their life coming to an end. "The letter" can be extremely effective and often is a large comfort to sellers when it fulfills their emotional need to know what's next for the house and who will live there.

In 1999 I wrote an offer for myself on a house on 4 acres that already had 3 offers ahead of us, 2nd day on the market. While looking at the house I walked across the street to talk to the neighbor outside. She told me the seller and her husband had built the house in 1969 as their retirement home. Shortly thereafter, their daughter and her husband had been killed in a car accident, leaving a young granddaughter.

The grandparents took in the granddaughter and raised her in the home. Now widowed and in her 90s, the grandmother was being taken in by the granddaughter and her husband to live with them.

So, the letter I wrote spoke of our two daughters, ages 3 and 6, and how much we loved the home and the neighborhood and thought it would be the perfect place to raise two girls, where they could climb trees, play in the woods and observe the wildlife.

Ultimately the house had 5 offers by the time the seller picked one. The agent called and said to me "well, your offer wasn't the highest, but the seller liked your letter and wants your girls to have the house".

Go ahead and throw away your letters when you sell, that's your personal decision, but I think it's a dumb thing to do and it disrespects the time taken by the buyers to express their seriousness and/or circumstance.

Steve
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