Presenting Offers in Today's Real Estate Market
August 27, 2012
It seems that we have entered a very competitive real estate market. In more and more instances, real estate agents are writing offers only to discover that the listing agent has already received an offer or more. All agents need to remember that the Department of Real Estate regulations require that all offers be presented to a seller unless the seller has specifically been instructed by the seller to not present other offers. In the case of bank-owned properties the bank may have directed the agent to only present one offer and no others until that offer has been accepted, rejected or failed to meet the datelines in the purchase agreement. In standard sales, the duty to present all offers continues until the sale is completed (Escrow is closed.)
It is frustrating for a buyer and for a buyer's agent when they receive no response from a seller. However, a seller is not required to respond to offers that the seller is rejecting. When there is no response, written or verbal, buyers sometimes wonder whether their offer was presented. For that reason, it is good practice to have a seller initial the offer showing that the seller has seen it.But again, this is not a legal requirement.
If a buyer's agent so desires, he/she can request that they participate in the presentation. A long time ago, before e mails and FAXes, it was common practice for an appointment with the seller to be made by the listing agent and both agents would sit down with or conference call with the seller. In todays real estate practice this is an exception to the usual procedure.
As a buyer's agent, making sure that your buyer knows the comparables, has a preapproval letter, and writes the best offer that the buyer is able to submit is probably the best way to compete.
It seems that we have entered a very competitive real estate market. In more and more instances, real estate agents are writing offers only to discover that the listing agent has already received an offer or more. All agents need to remember that the Department of Real Estate regulations require that all offers be presented to a seller unless the seller has specifically been instructed by the seller to not present other offers. In the case of bank-owned properties the bank may have directed the agent to only present one offer and no others until that offer has been accepted, rejected or failed to meet the datelines in the purchase agreement. In standard sales, the duty to present all offers continues until the sale is completed (Escrow is closed.)
It is frustrating for a buyer and for a buyer's agent when they receive no response from a seller. However, a seller is not required to respond to offers that the seller is rejecting. When there is no response, written or verbal, buyers sometimes wonder whether their offer was presented. For that reason, it is good practice to have a seller initial the offer showing that the seller has seen it.But again, this is not a legal requirement.
If a buyer's agent so desires, he/she can request that they participate in the presentation. A long time ago, before e mails and FAXes, it was common practice for an appointment with the seller to be made by the listing agent and both agents would sit down with or conference call with the seller. In todays real estate practice this is an exception to the usual procedure.
As a buyer's agent, making sure that your buyer knows the comparables, has a preapproval letter, and writes the best offer that the buyer is able to submit is probably the best way to compete.
posted by shirley harry at 8:20 AM
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