New Generation of Realtors:Presenting Abstract Offers!

**realestatefla1** · 06-30-2007, 04:22 AM

I`ve seen it all! We`re dealing with an agent who continues to call me with strange requests on a home that we have listed in Marion Oaks,Florida.
This particular agent would like our seller to agree to certain changes prior to placing an offer on the home! The agent continues explaining to me, she would only be wasting "Her Time" if the seller didn`t accept.
I don`t know about you but is this typical in your area? "Agents now believe it`s a waste of time,putting an offer on paper".
Who the heck teaches these things or is this just a new concept in Real Estate Sales?
During these last two days, this agent wants to know what our seller will do for her buyer,as if we have an executed contract!
Yesterday, I went ballistic and told this agent "We`re done dealing with abstract offers" Either Put up,or Shut up!"
Our seller will not entertain a verbal offer and instructed me to stop all "Verbal Abstract Negotiations".
The conversation is as follows:
Abstract Agent: Has the seller agreed to painting the interior beige, the kitchen needs to be painted white, and the carpet in the master bedroom needs to be cleaned. Are they willing to do this?
Me: I spoke to the sellers, they`re curious what you`re buyer wants to offer.
Abstract Agent: We`re not on the offer yet! It`s important that you`re seller agrees to what we want prior to us discussing price or closing dates.
Me: So it`s your opinion that we entertain an "Abstract Offer" is that it!?!
Abstract Agent: We do it ll the time. In fact my Broker encourages it!
Me; That`s a first, we discuss redoing a home, I have nothing to "Present" and you`re doing a good job for the Buyer? This is really a new way of doing Real Estate.
Abstract Agent;Well if you`re seller will agree to what we require, we`ll be ready to write an offer, you need to HURRY UP!
I haven`t a clue if this agent is joking or is quite serious! I`m wondering if she really understands what the heck is going on!
Each time she calls asking if our seller is prepared to make changes to the house I keep asking her about the offer being "Presented in Writing".
She keeps responding that we must 1st agree to their terms,before she informs us on a price!
There`s nothing left to say or do! I hope this agent can read my sellers mind, the answer is NO!

**Jim Erickson** · 06-30-2007, 09:16 AM

Have never run across your scenario. About the only thing close is when I get a low ball offer. Buyer's agent knows it won't fly but their client wants to convey regardless.

**slh2002_77** · 08-21-2007, 04:11 PM

That is nuts. She must have done it before to some other agent and they fell for it. That's like playing poker and showing your hand to your opponent. If she finds an agent that does fall for it she is really doing a good job representing her customer but in your case they may be missing out on a potentially nice home and that would not be in the buyers best interest. I guess the only thing that matters now is you protected you customer and required an offer first before negotiating. I do verbal agreements all the time but it's after the initial offer and once everybody is in agreement it's put in writing.

**Nelson Nigel** · 09-10-2007, 11:20 PM

I absolutely know that those same agents who approach sales like that will be making pizza at the local pizza hut in a year or so. We all know business does not transpire that way and from the dialogue, I am pretty sure that agent was not a very seasoned salesperson.

I personally will not even want to talk to a person like that, and I am a very nice mellow guy. Business is clear negotiations and most often giving more than you get.

Life goes on and football Sundays are always fun, especially with pizza.

**Malok** · 09-17-2007, 12:03 PM

In the various real estate markets that are viewed as being soft, you will see more and more unusual requests/demands. They probably figure that there are so many properties for sale - if they make those types of demands, someone will be desperate enough to run at the mouth.

**Nelson Nigel** · 09-17-2007, 12:31 PM

very very true statement indeed.

**BrooklynBroker** · 09-19-2007, 12:07 PM

Originally Posted by realestatefla1

I`ve seen it all! We`re dealing with an agent ....

Realestatefla1,
My opinion is you taking it too serious. Yes, you are right... from the formal point of view... the offer must be in writing.

But ... does it really hurt to call up the seller "Hey Jack, I'm here negotiating an offer on your property... before we get to numbers, the buyer is wondering if you would be willing to fix that broken fence provided you like his offer... what do you say?" What is the big deal, especially if you have good rapport with the seller.... Most likely Jack will reply :" I will fix anything at my own expense, just show me numbers!" That's all.

I have dealt with buyers who would rather pay $10K more in purchase price than get it for less and then hire a contractor to do the same job for $5K. Some people just don't want to get involved with any repairs... It's understandable. Buyer like that would tell me: "Don't show me any houses that need any repairs!" I can always accomodate their needs...

I'll tell you a funnier story in the same key. Just this morning a buyer's agent called me and told me that my seller's counteroffer from last night was accepted by his buyer.
I said "Ok, now I need to see EITHER a preapproval letter from a reputable bank OR the buyer's credit report and proof of funds."
Agent: " My RE broker has also a mortgage broker's license. I will give you a preapproval letter signed by him"
Me: "With all due respect, my seller's attorney will not be satisfied with the letter signed by your broker. There is no way seller's attorney will let his client to get stuck in a contract where the buyer is not mortgageable"
Agent: "You got to take my word for it - the buyer has good credit and lots of money in their account"
and so on... What do you suggest I do?

**Malok** · 09-19-2007, 12:12 PM

If he has "lots of money in his account" - I'd hit'em up for a big deposit. Something on the order of 40-50% down to start as a negotiating point.

If the person hedges - press your point and say:
"Whats the matter, you said he wants the property, right? And you said he's got a lot of money in his account. If he's really wanting to do this deal, lets do it and be done with it"
etc
etc
etc

Keep the pressure on him about how his guy is legit and has a lot of money to do the deal cause thats what the other agent told you.

If he actually comes up with a big deposit, that should give your persons comfort that he can do the deal, and if he walks from that deposit, your persons should be pretty happy to put it back on the market.

And as a worse case, it should put some pressure back on the other guy to actually present you with the appropriate documents that you wanted in the first place.

**BrooklynBroker** · 09-19-2007, 01:03 PM

Originally Posted by Malok

hit'em up for a big deposit.

You're right. I'll do that. 25% on the contract.

The thing is that the lawyer will charge my seller with $100-200 for every contract sent out, whether executed or not... Hate to see my seller paying for nothing... Well, on a market like this every offer should be considered....

I basically know what the matter is: the downpayment is there all right, but buyer otherwise is not qualified. Once the buyer gets fully executed contract, he will start looking for a straw buyer with good credit in his community. If he is lucky to find it, they will request to change the name on the contract at that point.... If not, he will ask for his deposit back... Been there...

BTW, anyone knows how to ensure legally that earnest money deposit is not returned to the buyer if it's buyer's fault that there was no closing? In all my contracts that fell through the buyer always managed to get their deposits back even where they were at fault... Perhaps, my seller's attorneys are soft-hearted...

**Malok** · 09-19-2007, 06:13 PM

It probably gets back to that there wasn't sufficient size deposit to fight over - that wouldn't be offset by the very quickly escalating attorney fees.

There are a few ways to set it up to avoid the buyer walking away with no downside - but your best bet is to ask a competent attorney in your area to write it up.