Is a broker legally obligated to take an offer to the sponsor?

I don’t have a broker representing me, and made an offer last week at 23% below the asking price.  The apt is new construction, and identical apartments have sold at around the price I’ve offered.  So far as I can tell, the broker has declined my offer without taking it to the owner.  I’ve asked to see a letter signed by the broker, saying either that he’s seen and declined my offer, or that he’s not interested in seeing offers below a certain price.  I haven’t gotten this letter yet. Is there anything else I should do?  I found the owner’s email address and am wondering if I should email him directly.  What is his broker’s legal obligation with respect to offers? Thanks!

sloper

in Real Estate - Sales 13 years and 6 months ago

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sloper | 13 years and 6 months ago

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My offer was in writing and I was pre-approved by the broker’s lender.  The fedex idea is good, thank you.

Snezan | 13 years and 6 months ago

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even if the owner received your offer, the very first thing they would do is go back to their broker and ask about the offer. The broker would say that you’re dreaming and that would be that.  

Maybe if you sprayed the letter with some perfume and mailed it via singing telegram? 🙂 Just kidding.

slopemope | 13 years and 6 months ago

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normally i would suspect a broker withholding offers if it is going to cut his commission percentage (in this case not applicable).  i am guessing broker knows where the “nonstarter” numbers are for the sponsor, and probably receives plenty of them.     You didn’t mention if the offer was in writing, accompanied with pre-approval etc. (anything that makes you look great and serious)  You can always fedex such package to broker and cc: fedex to sponsor.     However before you do that, you should have a honest and open discussion with the broker about how you are justifying your price (comps) and how they justify theirs (it is a hot market right now, only a few units left etc).  With the market moving up, there may be a lower comp but they might feel confident they don’t have to give “favored nation status” to new buyers.  Also check that comp to see if it was before the building was less than 50% sold, where the market was at that date it went into contract (ie could be much different than when it sold, etc.

bklyn23 | 13 years and 6 months ago

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Yes the broker is legaly obligated. Report him/her to the Real Estate licensing board. http://finance.yahoo.com/education/real_estate/article/101456/10_Things_Your_Real_Estate_Broker_Wont_Tell_You