satriela Posted November 5, 2007 Share Posted November 5, 2007 (edited) After managing an apartment complex for a few years, I'm looking to buy my first property. Last week, I spotted a duplex in the third ward that looked like it could be a cash flow positive property. I called the realtor and told her I was interested and asked to see the property. The first thing out of her mouth was "Have you been pre-approved?" I told her that I had and then she said that she would not show me the property until I faxed her my pre-approval letter. I faxed her the letter and we arranged to meet at the property on Saturday. On Saturday she said "Do you have an agent"? I said no. Then she said "Well if you get an agent, the price of the property will increase because I will have to pay the agent." Then she said, "If you don't get an agent, we can take a little bit off the cost of the property, but if you do I am telling you right now the price is going to go up." It doesn't matter now because I didn't like the property (very poor rehab job) but her whole manner just doesn't sit right with me. I understand that agents get commision from the sale price, but is it normal for a realtor to try to intimidate someone into NOT having an agent? Is it normal to have to fax your pre-approval letter before an agent agrees to show a property? I've been watching the market like a hawk for the last 8 months and I'm confident that I will pay a fair price for whatever property I choose but now I'm beginning to believe I might need an agent just so I won't get screwed in ways I can't even imagine right now.... Edited November 5, 2007 by satriela Quote Link to comment Share on other sites More sharing options...
TheNiche Posted November 5, 2007 Share Posted November 5, 2007 After managing an apartment complex for a few years, I'm looking to buy my first property. Last week, I spotted a duplex in the third ward that looked like it could be a cash flow positive property. I called the realtor and told her I was interested and asked to see the property. The first thing out of her mouth was "Have you been pre-approved?" I told her that I had and then she said that she would not show me the property until I faxed her my pre-approval letter. I faxed her the letter and we arranged to meet at the property on Saturday. On Saturday she said "Do you have an agent"? I said no. Then she said "Well if you get an agent, the price of the property will increase because I will have to pay the agent." Then she said, "If you don't get an agent, we can take a little bit off the cost of the property, but if you do I am telling you right now the price is going to go up." It doesn't matter now because I didn't like the property (very poor rehab job) but her whole manner just doesn't sit right with me. I understand that agents get commision from the sale price, but is it normal for a realtor to try to intimidate someone into NOT having an agent? Is it normal to have to fax your pre-approval letter before an agent agrees to show a property? I've been watching the market like a hawk for the last 8 months and I'm confident that I will pay a fair price for whatever property I choose but now I'm beginning to believe I might need an agent just so I won't get screwed in ways I can't even imagine right now....I wouldn't consider it normal for you to have to fax over a pre-approval letter, but it isn't uncommon either. If there were tenants already living there, then I'd consider it entirely reasonable, so as to avoid disturbing them with every prospective buyer that wants to take a tour.As far as the price, always remember that EVERYTHING is negotiable. You can offer any amount they like, and it is up to them and the owner to accept or decline. It is common that you can either ask for or be offered a price reduction for using their Realtor; I've done that in the past and made out like a bandit by carefully playing off of some conflicts of interest.I do vaguely recall having heard that if there is an official listing price, and you submit an offer that meets or exceeds it, they can't turn you down, but I'm not confident that that is true. The Realtor's commission should be baked into their contract with the seller, so whether it is true or not, it doesn't make the least bit of sense for the price to increase if you get your own Realtor.I wouldn't say that what that Realtor did was necessarily an act of intimidation, but they're definitely playing hardball. I realize that the real estate transaction process is complicated enough without having to deal with the incompetent, dishonest, or hardball practices used by many Realtors. Don't let it phase you. Take your time to understand every process that is gone through, how they all interrelate, and what your options are before making a decision. If you have questions, post them on the forum and one of our honest Realtors will undoubtedly offer assistance.Welcome to the forum. Quote Link to comment Share on other sites More sharing options...
satriela Posted November 5, 2007 Author Share Posted November 5, 2007 Thank you, TheNiche. The property in question was empty, but I can totally see a manager not wanting to disturb tenants with frivolous lookers. Quote Link to comment Share on other sites More sharing options...
HoustonRealtor Posted November 5, 2007 Share Posted November 5, 2007 An agent doesn't have to show you a property, so from that perspective it's OK to require a pre-approval letter. Not necessarily a way to win friends and influence people, but she was probably just trying to avoid wasting her time with someone that couldn't qualify. We've all put in time and effort on someone that either couldn't get approved or just couldn't make a decision. She was probably trying to keep from running around for no reason.As for the trying to get you to not use another agent, there could be a variety of reasons. Here are a couple: Does she own the property you were looking at? If so, she could afford to sell it for less if she could avoid paying a buyer's agent. Some agents try to sell their own properties on the side before putting them in MLS because they don't need anyone to represent them and they may be able to sell it without any commissions to another agent or their own sponsoring brokerage.Was the property listed in MLS? Maybe she was an owner/agent trying to sell it on the side and had no desire or intention to pay a commission at the current asking price. She could always raise the price to cover commissions when/if she puts it in MLS.Regardless, she doesn't sound like anyone that I would want to have represent me as a buyer (or seller for that matter!). However, without knowing all of the facts, it's hard to say whether or not she has done anything wrong. She's definitely not a people person though. Quote Link to comment Share on other sites More sharing options...
satriela Posted November 5, 2007 Author Share Posted November 5, 2007 HoustonRealtor, thank you for your reply. The property has been listed on HAR.com for at least 4 months. According to HCAD, she does not own the property, but after a little bit of research, there does seem to be something circular going on with her firm... Quote Link to comment Share on other sites More sharing options...
TheNiche Posted November 5, 2007 Share Posted November 5, 2007 According to HCAD, she does not own the property, but after a little bit of research, there does seem to be something circular going on with her firm...I've dealt with a firm like that. Never again (if I can help it)! Quote Link to comment Share on other sites More sharing options...
rbarz Posted November 5, 2007 Share Posted November 5, 2007 I do vaguely recall having heard that if there is an official listing price, and you submit an offer that meets or exceeds it, they can't turn you down, but I'm not confident that that is true. The Realtor's commission should be baked into their contract with the seller, so whether it is true or not, it doesn't make the least bit of sense for the price to increase if you get your own Realtor.The Seller is free to accept or decline whatever offer comes his or her way and for any reason. You could make an offer well over the listing price and the seller has no obligation to accept the offer. (However, the Seller may owe the Listing Agent a commission if he brings the Seller a reasonable full price offer. )Cheers Quote Link to comment Share on other sites More sharing options...
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