What is a typical length of time for response to an offer made on a property?

I made an offer on a commercial property (by letter of intent) that included a pre-approval letter and a letter that I wrote suggesting the desire to add an earnest deposit to carry more weight with the seller. I can not get the real estate agent to be straight-forward with me. Every time I talk to him he says, ohhh the seller is getting paperwork together, etc. It has now been two weeks. Is this typical?
In Buying Property - Asked by Kyle B. - May 19, 2009
Report Abuse
Answer this Question

Answer(s)

Paul S.
Broker/Agent
Glendora, CA

One thing I hate about letters of intent is they mean nothing. Nothing is binding with a LOI so you have merely submitted a "I would like to buy it, maybe" letter. What usually happens after a LOI is submitted is you will "open" the door to negotiation with the seller. You may receive a contract which in all likelyhood bears no resembalance to your LOI. The contract or purchase and sale agreement (PSA) will be the first tangible thing you have in the purchase. Since the contract is in the seller's hands it may take some time to get it. It sounds like you don't have an agent which may put you in a weak position in that the only agent you are dealing with represents the seller? Keep pushing. You don't want to include a deposit with a LOI because you have nothing binding. Essentially you would be giving money to a stranger with lots of ostsicles to getting it back. You will be asked for a deposit soon enough when you get a contract.
Paul Sylvester, CCIM

May 19, 2009
Report Abuse
Scott R.
Broker/Agent
Manhattan Beach, CA

Hello Kyle,
With investment property, it can be hard to know what is happening. Either on your own or through your broker, find out if there are more offers on the property asside from yours. Find out if there is something specific the seller would like to see on the offer or LOI. If you have any questions feel free to contact me.
Scott Rosenberg

May 19, 2009
Report Abuse
Scott B.
Broker/Agent
Indianapolis, IN

Kyle:
Two weeks is a bit long. I wonder if you put an expiration date on your LOI? In most states, brokers are "required" to submit all agreements in a timely manner to their clients. But, that does not mean that the seller has to respond or respond in a timely manner. If you offered a low number, then they may never respond. If your offer was close to or at the asking price, and you are hearing nothing, then I would get concerned. Either way, if you are a buyer, you should always use a real estate broker. It would cost you nothing (normally the other broker splits commission) but you need to insert them at the onset of the your interest in a property. They should make the first call for you. Anonymity can work to your benefit. Also, they might be able to craft the documents so that they look more legitimate (not so say that yours were not). Brokers fall into a norm of how they handle things, and maybe they got some wrong impression by how you worded your document. My advice is to call a commercial broker in your area. Feel free to contact me and I can make a recommendation, as I have a network that gets around the country.
scott@baldwinbrothers.net / www.baldwincommercial.com

May 22, 2009
Report Abuse
Shawn J.
Broker/Agent
San Diego, CA

You need buyer representation, 85% of my business is representing the buyer, let me know if you'd like more information. It usually takes 2-3 days to get an answer on a LOI, unless its a low ball offer. Contact me at (760) 452-2404 or at Shawn@1031NNNSearch.com I'd be happy to go over any questions that you may have.

Jun 3, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question