Expert: Karyn Foley - 3/26/2010

Question
QUESTION: Hi Karyn,
Is there any reason a buyer’s agent insists on make an offer directly to the seller, rather than to the sellers agent?

Thanks,
Carol

ANSWER: Dear Carol:  Here, in California, the buyer's agent has the right to ask to present the offer both to the seller and to seller's agent together.  And, so does the seller's agent have the right to ask their agent to have the counter offer presented directly to the buyer as well as the buyer's agent.  Nowadays, however, it is more customary to just present by fax, thus eliminating what I feel is actual representation.  Personally, I like to be involved with the principals as much as possible so I can hear for myself their comments.  Second hand information is not as good as direct.  It is an excellent time to ask questions, observe body language, listen to nuances in replies and so forth.  A person whose skills are excellent in communication can learn so much and utilize to better represent their client.  I don't know who you are, principal or agent, but it is important to do what makes everyone comfortable, what the principals request be done, and to do as much as possible to watch, hear, listen, compute, interpret, and so forth.  Face to face is the best mode to follow. After all, agents are then more apt to be able to ask questions of the principal directly and follow their train of thought and reasoning.   But, it is better not to be aggressive and demand, but to polite say that this is what your principal has asked you to do if at all possible.  You may not get your way, but you should try to earn your commission by working all the angles and as hard as possible.  Again, if I knew what position or role you are playing in a transaction, I could explain it better.  Karyn

---------- FOLLOW-UP ----------

QUESTION: Hi Karyn,
Thanks for your quick response.  I am selling my home through an agent. I live in N.Y.

Previously, I had a seller’s agent make the same request through my agent.  He bought all the comps and did his very best to convince me to take the offer which was $150,000.00 less then asking price.
Since then I have drastically lowered the price and again, recently another $36,000.  I cannot lower it any further.  The potential buyer saw the house prior to the reduction in price.
His agent wants to make the offer which I am sure is again below the asking price.  I feel if the offer was within the asking range, it would have been presented to my agent and there would be no need for personal one on one intervention with the buyer’s agent.  I explained this to my agent and refused to meet with the seller’s agent.
Since this is only the second time this has happened, I wanted to know if it was proper procedure. My agent explained that I was very adamant about it but the seller’s agent held her ground and would not present the offer to my agent, which leads me to believe my assumptions were correct and there was no need to subject myself to hearing about the market being difficult and the offer although low, one that I should except.
Thanks,
Carol

Answer
Dear Carol:  T he offer belongs to the seller and is usually mandated (by state real estate law) that it must be presented.  If you did not want to hear it personally it should thus have been given to your agent to be submitted to you.  Please check with the office owner or manager of that buyer's agent office.  That office may be in violation of real estate practices and procedures.  It may even be that your buyer did not know that it was not presented.  If that is the case, she was not properly represented.  Your assumptions may or may not have been correct.  Next time, please give it a chance to do it the other agent's way.  You will know within five minutes after presentation, and if you do not like the price, say so, hold your ground, and if you must - just leave or ask the other agent to leave.  If the buyer's agent does have correct comparable sales prices, he may be reasonable with a lower offer.  Does your agent have the same comps?  Just because an offer does not fall within what you say is your range, does not mean that it was not a fair offer.  What a seller wants to receive or needs to receive does not indicate value.  Keep in mind that even after an offer is accepted it is still contingent upon the buyer obtaining financing.  The bank will not loan on a home that is sold above the value of the home.  Times are tough, and the banks are tougher.  Good luck next time; I hope you prevail and sell your home.  Let me know what happens, Karyn Foley