Pre-emptive Bully Offers

Holding back offers until a specific date has become the norm-usually a week after the listing appears on MLS. This hold back date is posted on the listing in the brokerage remarks.

Holding back offers have merits for both buyers and sellers:

• More buyers can view the property
• The listing agent can hold weekend open houses
• Buyers can get in their own home inspector
• Buyers can get pre-approved as opposed to pre-qualified.
• There might be a greater chance to get multiple offers=a higher price than asking.

The downside:

• Another property comes out that is far more appealing
• Buyers don't want to bid in a multiple offer situation.
• Buyers have more time to think about the downfalls of the house and not offer at all

The second issue-"The Seller Has the Right To Consider Pre-emptive Offers"

This is where the buyer gets the short end of the stick. They are very anxious to buy the house and not wait for the offer date. In order to get the house the buyer will offer substantially more than the listed price. They put an offer in with an irrevocable until the same night as they make the offer.

Once the offer is registered-the Listing Agent calls the Buyer's Agent back and immediately asks what is the price you are offering. Let's remember that the buyer's agent works for the buyer and does not want to ruin the chances of the making a deal for their buyer. Therefore they do not want to show their hand by price only.

If the listing indicates "The Seller Has the Right To Consider Pre-emptive Offers" then the Listing Agent must go back to their seller and ask if they want to consider looking at the pre-emptive offer. If the seller wants to look at the pre-emptive offer then an appointment should be made to view the offer. Respect should be given to the Buyer's Agent for their hard work in bringing in an offer and the buyer who finds value in the property to make an offer.

Listing Agents should price the property according to comparative properties recently sold, not by underpricing and leading their sellers to expect offers way over asking. It is becoming a very shady way of doing real estate. Either the seller wants to sell at the price posted on the MLS and not expect to get over asking by waiting to look at offers, or look at offers as they are registered.

Many agents are now questioning the ethics of how properties are being priced, hold back dates and pre-emptive (bully) offers. The Buyers are the ones that are really losing out and getting frustrated with the whole buying process. This does not uphold the reputation of the real estate business.

www.dianeplant.com