Who Shopped My Offer?
When the buyer agent submits an offer, the agent on the other side, the one who represents the seller, is possibly (probably) going to “shop” the offer.
What does that mean?
It means that the seller’s agent will use the offer to generate interest, or re-kindle interest, from other potential buyers, often buyers who have previously expressed an interest in the same property.
Why?
The seller’s agent has a fiduciary duty to the seller to make as much money for the seller as possible.
Imagine that a prospective buyer is not ready to make an offer, perhaps not sure that this house is the “One,” but it is still on the prospect’s list of “possibles.”
The prospect’s agent says to the seller’s agent, “My buyers really like the property, but they’re not able to squeeze the trigger. Give me a call if you get any action on it, and I’ll see if my guys are ready to get serious.”
So, what’s a poor seller’s agent to do? Seller’s agent gets the offer and immediately calls previous prospect’s agent and says,“You asked me to call you if I got any action. Well, I just got an offer. If your guys want to get in the game, I need your offer in writing on the table by 3:00 pm tomorrow.”
That’s “shopping” the offer.
There are many variations on this theme. I ask you, is it legal? Is it ethical. Is it mannerly? Is it a necessary act of fiduciary duty from the agent to the client?
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