double ending realtors

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Hi
I`m a real newbie in the investing world and I`m getting frustrated at trying to buy my first property.
This weekend I was looking at a duplex in Calgary (329,000), that has been on the market for 88 days and had a 10% priced reduction about 20 days ago. It has been sitting empty for almost all 8o days.
I did my due diligence and everything was saying go.
I arranged to meet with my realtor after see was done her open house at 6pm, check it out 1 more time before I submitted my 1st offer. When I arrived my realtor tells me there are new buyers that saw the duplex on welist today and contacted the listing agent to meet and make an offer. What a strange coincidence and twist of fate.
Then we get a call from the listing agent saying she is going to double end the deal and that she is waiving half her commission. Now not only am I bidding against a new buyer but the listing agent just changed the playing field.
I was ticked off and felt pressured and to me the whole deal was suspicious and smelt bad. So, I walked away from it.
Was I right to walk from it?

Andrew

 

[SamEfford]

Why not make an offer and ignore the listing agents changes? Make an offer based on your due diligence and see what the seller counters with.

 

[Thomas Beyer]

QUOTE (SamEfford @ Jun 22 2008, 05:12 PM)
Why not make an offer and ignore the listing agents changes? Make an offer based on your due diligence and see what the seller counters with.




yes, submit an offer with terms and at a price that you feel comfortable with regardless of new situation !



rule is ALWAYS USE THE PERSON THAT INTRODUCED YOU TO THE DEAL !



So, of person (or realtor) A gives you a lead .. you submit an offer through person A .. and then A and B (listing agent) can decide how to split the commission ..



also, IF there is a good deal, IMMEDIATELY send an offer ! We have lost several deals because we had only 1 or 2 hours between our offer and 3rd parties .. you are usually not alone in this game .. and if you think it is a good offer.. chances are someone else will also think that !



So, submit an offer first, with conditions that allow you to walk away if you so chose, and then do your due diligence !! If you find later that the building is overpriced or you wish to change terms .. you can always do that later .. at the chance of losing the deal of course .. but you now have an information advantage .. (with the caveat that if you do this too often in too small a town or with a small network of realtors you will get marked as a tirekicker and it can back fire on you later !!)

 

[RedlineBrett]

Thomas is absolutely right here. In this "Buyer`s Market" with 12000+ listings I have still been in competition on offers lately.

We are not alone out there... there are lots of buyers on the sidelines waiting for the market to start to turn.

BUT most buyers don`t want to compete! So if they hear they are in competition many simply move on as there is so much to choose from. Best approach is to get paperwork in front of the seller if you are even 7/10 that you want the deal... and then finish up your due diligence in the days that follow.

QUOTE (thomasbeyer2000 @ Jun 22 2008, 05:54 PM) also, IF there is a good deal, IMMEDIATELY send an offer ! We have lost several deals because we had only 1 or 2 hours between our offer and 3rd parties .. you are usually not alone in this game .. and if you think it is a good offer.. chances are someone else will also think that !

 

[DaveRhydderch]

Good advice here.

What the selling realtor did is allowed, and happens quite often. The great thing though as investors is we don`t get emotionally tied to the house. I would have still put in my original offer, and see what the sellers come back with.

However, there are many other great deals still out there in Calgary so I wouldn`t sweat this one too much.

Good luck