My Agent's Not Worthy
an agent showed me a property, and submitted an offer for me (well actually, she got it all wrong and I had to correct it). This agent is not qualified to negotiate this type of commercial property, and I'd prefer to have another agent. Am I stuck with her since she showed me the property? will another agent represent me (of course, I'd disclose what the other agent did for me)? I realize I should have interviewed her more, but I didn't learn about her limited abilities until after the showing. I have not signed anything commiting myself to her. Any thoughts?
I have found that you really need to do your homework to find an agent who understands how you want to operate...
You will most likely go thru a few agents till u find one who works for you. Remember if they are good the are woring for you and making u money...
If you are asking this question you are probably new. If you are using an agent you are probably new. If you are new you may not want to do a commercial property for your first deal. Dont let me poo poo your deal, it may be a homerun, but I recommend SFR for your first deals.
Dont get me wrong agents have their place. After all, who else would tell someone headed towards foreclosure, that they can still get full ARV with a bad roof, 1960 green shag carpet, and the sweet scent of cat pee eminating throughout the house.
Cat Pee = Deal
You can withdraw your offer from this agent and find another one to write the offer. You don't need to make any explanations to anyone, unless you want to. You are committed to noone but yourself. And that's that.
Good luck,
Noel
PS - And look out for people offering advice who make a lot of presumptions or demeaning comments.....they are what I think of as cat pee-pee heads.
_________________
A little brain, a lot of perseverance and faith in the theory of it all.[ Edited by noel2 on Date 02/05/2004 ]
Tell the agent the only way you will bid on the property is that you present the offer to the owner personally.
When I make an offer I prefer to keep quiet about who I am to keep the seller from holding out on price based on my reputation. Just b/c u are known to be an investor they expect u have deep pockets
Interesting, but that is not entirely accurate. If the agent did in fact show you the property first, then they are the “procuring cause” of the sale, should you buy it. If she finds out on the other hand, the only person that would pay would be the other agent (if you use one) with their commission should your former agent take them to the board and prove she was the procuring cause.
If you buy it from the owner yourself and she finds out, yes she can take you to court for the commission she would have received had the sale been completed through her.
If it ever came to that, basically prove she is a screw up and you should be ok, but the courts can be very unpredictable.
Being new is ok, using a “good” agent is ok, and likewise “freshmen investors” have their place as well. But, I do throw quite a few out of my offices on a regular basis for wasting my time with nonsense.
Please don’t let anyone “new to investing” tell you that doing commercial is not a good idea, because it really is.
Good Luck,
Bill
[ Edited by JohnMerchant on Date 02/16/2004 ]
Bill,
Is there more $$$$$$$$$ risk involved in commercial real estate based on the $$$$$$$$$'s involved? As a real estate agent what would your commission be on a $1,000,000 deal? I have never heard anyone state that you should start with commercial ventures. Do you have a lender that will back someone without experience in real estate investing? Oh sure, if the deal is good enough anyone lender would back it. If the deal is that good how does it get past the top investors?
I realize the larger the deal the larger the potential payoff. Just be careful when starting out spending "...millions on raw dirt and land."
By the way Bill. You are listed as a NEWBIE. Technically that is lower than Freshman Investor.
Ah!!! I just love a vigorous discussion and repartee.
The offer was presented and I presume rejected. There was no counter-offer. The transaction on it's face is dead.
Now, if a new agent in the future rekindles interest in the property----the question of "procuring cause" (perhaps tendered by the first agent) has a very good chance of being rejected. The second agent is not stealing her commission, she's earning it . This is not the case of an agent reaping the harvest from the seeds sowen by the other agent.
The other piece of advice "having someone present the offer herself" is ill advised.
Hey Vegas,
I wish I was freshman in highschool. I am only in 8th grade. I find the properties and I send my mom to contract them.
I live in the Tampa Bay area. I believe the entire state of Florida is a hotbed of investing. Why else does it make sense to hold the TCI convention an hour down the road from me?
Vegas High Roller I like you too if you are ethical shich I am certain you are.
Every week there is a new story of some "Real Estate Investor/Snake" doing something illegal. Search Mathew Cox Tampa for our latest example. Alleged bank fraud many times over to the tune of $2.1 million. This makes it tougher you and I to go to business.
Watch out for the "Blood in the Streets" of which my friend Andy likes to speak. The RTC and OTS are going to look like blips on the screen. If I were older I would understand this, but only being in eigth grade I need to go ask my mom.
ORGINAL POSTER and all other readers,
Dont ever let anyone discourage you! Even if you are only taking baby steps at least take forward steps. More than 10% of the year 2004 is gone. What have you done in real estate this year? Commercial, multi-family, single family, mobile homes, vacant land, assigning contracts whatever Just do Something Positive!!!!!!!!!!!!
Dig Dug
Doug, that was hilarious! Exactly, bull in a china shop, get my commission, close my eyes and shoot in the dark, hope it lands...
Quote:
On 2004-02-05 23:22, doug_powell wrote:
If you are asking this question you are probably new. If you are using an agent you are probably new. If you are new you may not want to do a commercial property for your first deal. Dont let me poo poo your deal, it may be a homerun, but I recommend SFR for your first deals.
Dont get me wrong agents have their place. After all, who else would tell someone headed towards foreclosure, that they can still get full ARV with a bad roof, 1960 green shag carpet, and the sweet scent of cat pee eminating throughout the house.
Cat Pee = Deal
My god we just closed one exactly like this. We actualy sold it at fair market price. Of course the Seller paid all closing costs and the brokers fee and it was so tight that a $1,200 second mortgage was also part of the consideration contribution of the seller.
But we did get full Market Price. We had told the Seller to hold out for it. The cat lover who bought the place, thought that the faint oder of Cat Pee was some form of scented odor induced into the carpet on purpose.
Morale: There is something for everyone and sometimes, just sometimes it takes your dedicated Broker lover of cats to find that special Buyer who lacking money but long on love of Cats will buy and pay full market. Of course this was all in paper and the Seller contributed about $9,000 to make it all happen. But wot the hell. We did get Full Market, duh.
Lucius
Speaking of Cat Pee,
I came across a house yesterday that the SPCA was at for 2 days. It turns out, a lady here had a house on the other side of town with 38 cats inside. The house I was standing outside of 78 cats had just been removed. Does anyone have a suggestion on how to remove the cat pee smell and the name of a good cleaning crew?
The SPCA recommended torching the place. The only problem is the house is cement block with plaster walls. Fire would just burn the piles leaving more of a mess. Anyone have a good supplier of hip waders and respirators?