Special offer

Walk or Wait?

By
Real Estate Agent with Coldwell Banker Residential Brokerage 531132

StopwatchWe all know how challenging the market can be right now for buyers. Multiple offers, while not the “norm” in most areas, are becoming more prevalent as the inventory shrinks.

 

Frustrated buyers put time limits in offers to coax sellers to respond in a timely manner. Those time limit constraints are often ignored by sellers. A bit of greed sets in when you get five offers on a listing in just two days. Heck, if I got five offers in two days, why don’t I just leave it on the market for a few more days and see what happens?

 

Be careful selecting the offer to work with though. It happens far too often that the highest priced offer has difficulty appraising for the offer price. Yes, some buyers may be willing to make up the difference, but many won’t. In those cases, we are always guided by what’s in the contract, and that may mean a price reduction.

 

Buyers frequently ask me the question when a seller doesn’t respond by the date required in the offer...”what should we do?” Technically, you don’t have to do anything because your offer expired. You may want to wait though, since they still haven’t made a selection.

 

This strategy only works for a while before the buyers feel like they’re getting played by the owner and listing agent. If that happens, many buyers will never return to that house.

 

Real estate isn’t a never ending story. Buyers are patient...to a degree. Sellers need to be careful that they don’t lose the best offer...waiting for just one more to come in.

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 Richard Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).

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Comments(49)

Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

In multiple offer situations, a deadline would appear foolish. The buyer has no leverage in this market

Jun 24, 2013 11:49 PM
Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

Richard, delaying to make an offer on a home they really want positions them at certain risk of losing a home their dream home.  Agents should inform buyers on the importance of making a quick decision rather than delaying.  

Jun 25, 2013 12:11 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Listing agents need to ensure they respond in timely manner and not a week later. I have seen where sellers have lost the highest offer due to their agent procrastinating.

Jun 25, 2013 12:24 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

The world here is very active. I use deadlines but am realistic in the time given to respond. Have to be flexible.

Jun 25, 2013 12:52 AM
Chris Miller Nevada Land with Water Rights
Vegas Grand Realty and Property Management - Mesquite, NV
Land with Water Rights For Sale

Interesting coversation with some very interesting statements; Buyers have no leverage in this market, everything is selling anyway, Greed is becoming part of the equation more often now. My favoite; Lots of game playing going on right now. Sounds all to familiar and scary to me.

Jun 25, 2013 01:05 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Richard

The sellers are in control in our area and buyers putting in deadlines are porbably going to lose out. More and more we are seeing listings where offers iwll be reviewed at a certain time, usually after the first open house. Our CA contract defaults after 3 days if no response adn no other date is stipulated but most folks just wait it out.

Jeff

Jun 25, 2013 01:10 AM
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

It's always a tough situation to decide on whether to walk or wait. I think it depends on how emotionally vested they are in the property at that point. They'll just cross their fingers and hope for the best.

Jun 25, 2013 01:12 AM
Graziella Bruner
NCS Premier Real Estate - Detroit, MI
Associate Broker - Serving Wayne & Oakland County

I believe it's all about the communication, seller already knows what they want to net or what type of offer they're really looking for, if the offers that come in are not what they're looking for, then reject or counter the one that is closest to what they're looking for.  I don't believe you need 4 weeks to decide on which one to choose from.  I personally sit down with my sellers and work out every possible offer that may come in, those that need help with closing cost, to those that are putting a larger amount down, to whatever contingencies may come up.  Sellers know their bottom line, just like the banks do and you know at what price you need an offer to be.

Jun 25, 2013 01:15 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

I'm with you I give my buyer's the same advice it is up to them if they want to continue to wait or not. Thanks for sharing.

Jun 25, 2013 01:19 AM
Team Honeycutt
Allen Tate - Concord, NC

I am in agreement with buyers putting a time limit on receiving an answer but it should be a reasonable time limit. I have recieved offers at 10:00 in the a.m. and they want an answer by 7:00 p.m. That is so ridicules. Sometimes we can't even find our sellers in that length of time.

Betty

Jun 25, 2013 04:45 AM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

In Collier County when it expires it expires and to revive it you must start all over again.

Jun 25, 2013 05:37 AM
Bryan Robertson
Los Altos, CA

Good advice.  I've seen high offer buyers pull out after they do their DD and decide to pass or try to renegotiate. 

Jun 25, 2013 06:21 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

It's a good idea to check with the sellers agent to find out what the sellers reaction to it was, i.e. they are considering it or they have no intent to counter. 

Jun 25, 2013 06:54 AM
Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

It can be very tricky to figure out what will be best in each situation when it comes to closing a deal. Sometimes you just have to trust your gut when making a decision about an offer and hope it works out in the end.

Jun 25, 2013 07:18 AM
Dee Toohey
Innovative Realty Solutions Group - Longwood, FL
Broker, ABR, AHWD, CIPS, FMS, ePro

I am going through this with buyers right now!  URG!  The offer expired yesterday at 5:00.  At 5:36, the seller's agent emailed for a highest and best by 11 today.  I went back to my buyers who, against my advice, raised their offer by $5000.  The offer is now nearly 10% above list and I don't think it will appraise.  I did advise the buyers of this situation.  However, I did as they asked.  Here it is nearly 6pm and no response.  My buyers are on edge. 

Patience is a virtue!

Jun 25, 2013 07:50 AM
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Just went over this with my buyer.  He texted me, 'So the deadline is meaningless then?'  Well, no - but the buyer has no power except to walk.

Jun 25, 2013 08:48 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
Just had this happen recently, offer expired and seller's agent emailed me a full week later that sellers changed their mind and were willing to accept buyer's last counteroffer. In our case, it all worked out.
Jun 25, 2013 11:05 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

A sellers market can bring out he worst in some clients for sure.  Thanks for sharing article today.

 

Jun 25, 2013 07:04 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I used to pay attention to deadlines and try to place mine just right to allow the seller time to make a decision, but not so long that they would start using my offer to leverage others into getting their offers in. 

After dealing with foreclosures these last few years, when my Realtor asks what deadline I want to put on an offer, my question is "does it even matter anymore, they just ignore it anyway".

Jun 26, 2013 04:31 PM
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING RICH!  It is never good to be greedy and to play games - in real estate or not.  With many offers on the table - it's best to pick the best one and consider it good!

Jul 02, 2013 10:26 PM