What's a Seller To Do?
March 7, 2013
Buyers and the buyers' agents may be frustrated but how are sellers and sellers' agents handling this wild market?
A seller lists a house based on a comparable market analysis (CMA) done by the real estate agent. The seller has seen what has sold recently, what is in escrow and what the competition will be when he adds the property to the active listings. Within 24 hours the agent has presented him with from 1 to 50 offers. (I even overheard an agent saying that a property owner in MorenoValley had received 70 offers.
A real estate agent's duty to a seller is to assist in obtaining the highest possible price for the property. Thee issue becomes: What is the offer that will net the seller with the highest possible price. Offers may be all cash. They may require FHA loans or conventional loans. A buyer may request the seller to pay a portion of the buyer's closing costs. A buyer with a loan may or may not have a contingency regarding the loan or the appraisal. The escrow period may be short or long. One of the offers may be from the listing agent whho is acting as a dual agaent.
What's a seller to so?
With the assistance of the listing agent, the seller needs to check through the terms and conditions of each offer. Perhaps, in this real estate market, agents need do make spread sheets with price, loans, appraisal, inspections, termites, escrow length, home warranty, etc. All the items that can affect the eventual net to the seller.
Once the offers have been sorted though, perhaps the agent and the seller can pick the 3-5 best ones and counter those offers. The sellers counter can state specific terms or "highest and best". This strategy could bring forth the highest possible price that a buyer is willing to pay. It also can clear up some of the mistrust that buyer's agents and their buyers have about being treated fairly.
Buyers and the buyers' agents may be frustrated but how are sellers and sellers' agents handling this wild market?
A seller lists a house based on a comparable market analysis (CMA) done by the real estate agent. The seller has seen what has sold recently, what is in escrow and what the competition will be when he adds the property to the active listings. Within 24 hours the agent has presented him with from 1 to 50 offers. (I even overheard an agent saying that a property owner in MorenoValley had received 70 offers.
A real estate agent's duty to a seller is to assist in obtaining the highest possible price for the property. Thee issue becomes: What is the offer that will net the seller with the highest possible price. Offers may be all cash. They may require FHA loans or conventional loans. A buyer may request the seller to pay a portion of the buyer's closing costs. A buyer with a loan may or may not have a contingency regarding the loan or the appraisal. The escrow period may be short or long. One of the offers may be from the listing agent whho is acting as a dual agaent.
What's a seller to so?
With the assistance of the listing agent, the seller needs to check through the terms and conditions of each offer. Perhaps, in this real estate market, agents need do make spread sheets with price, loans, appraisal, inspections, termites, escrow length, home warranty, etc. All the items that can affect the eventual net to the seller.
Once the offers have been sorted though, perhaps the agent and the seller can pick the 3-5 best ones and counter those offers. The sellers counter can state specific terms or "highest and best". This strategy could bring forth the highest possible price that a buyer is willing to pay. It also can clear up some of the mistrust that buyer's agents and their buyers have about being treated fairly.
posted by shirley harry at 9:56 AM
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