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Verbal Offers, I Don't Want To Waste Your Time! Guess What You Just Did!

I've been in real estate since the early 90's..and one thing is certain..I have seen agents attempt to reinvent the wheel...I don't mean marketing...I mean the basics..I mean in presenting offers..

Without a contract
Without a deposit
Without the terms

Only words and you think your doing your customer a service?

How about mine?

See I thought the intent was to sell a house..if that is the case give your customer a fair shot at it.

Without a verbal offer but in writing, a written offer.

An offer they can visually see via sales contract.

With a commitment which means a deposit and how do you expect a seller to respond without terms.

Think about this....

My listing agreements always say No verbal offers, that means the seller will only accept written offers. That means YOU are no exception to the rule!

Have you ever presented a verbal offer and then the buyer changes their mind? Now what? I guess you got some splaining to do!

Do banks accept verbal offers? NO so don't expect me working on a short sale to do different. You can't get the buyer to commit long enough to submit a written offer, maybe you should go back and screen them once again.

If a buyer find a home worthy for themselves and their families don't you think they deserve a fair shot at being a homeowner? It happens a written offer comes in the same time a verbal is given..which do you think a real estate seller is going to take serious?

Just how many verbal offers have been miscommunicated for it to never ever turn into a sales contract? Then the verbal turns into nothing..Nada..zilch..and you don't want to waste my time? How about yours or your buyer's?

What about negotiations, don't you think you might negotiate easier with proof of a very serious ready, willing and able buyer? People are visual! Hello

If you are working for your customer, there are times...they are incorrect..its those hard to have conversations that may turn a verbal offer into a written contract.

Its our job to explain why it's important to get our offers in writing and just because your customer (a buyer) wants you to present the offer verbally, I have to ask is this a service or dis-service?

If they hired you, why not have the guts to explain the pitfalls in verbal offers?

The next time someone calls me and states, "I don't want to waste your time..

I might have to fire back..you just did!" How about you? Do you present verbal offers? Why?

Posted by Florida Real Estate Trainer | Daytona Beach After School Training | Midori on 08/17/2008 10:57 AM

Comments (149)

verbal offers, waste your time, daytona beach buyers, multiple offers, daytona beach sellers, midori miller, daytona real estate trainer

Originally posted at: Daytona Real Estate Training: Verbal Offers, I Don't Want To Waste Your Time! Guess What You Just Did!

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149 Comments on Verbal Offers, I Don't Want To Waste Your Time! Guess What You Just Did!

AUG

2008

They are a waste of time in most cases - except in the case of the crazy lowballs the buyers are trying to throw out. We have taken to a verbal to see about wasting the paper and energy with the craziness. I don't always agree with it, but generally it is best when a buyer is being ridiculous.

I find that working with buyers and having a wriiten deposit receipt, a deposit check etc, it makes it very easy to write on other properties that may become available.

I dont do verbal offers. They are hard to hold onto if its accepted as everyone can get memory loss or remorse with no obligation.

I say call their craziness and make them put it in writing. Whether it's craziness, or just laziness - it's a waste of everyone's valuable time.

AMEN! Midori, I have never understood how FL Agents got away with the whole Verbal counter offer thing either... Heres the language I use with my Listing Clients when I get a fax or verbal offer not on an offer to purchase contract with proof of funds, GFE check, and a pre-app letter for what ever those are worth, at least they have spoken with someone. "Hello John, Sheila Speaking, I need your permission to reject an offer?"

You are right a verbal offer is not worth the hot air its spoken with. Fifty or a hundred years ago when more people had integrity, a gentleman's word was his bond and it would MEAN something. However today that is not the case, I am sad to say. Good luck!

Betina

I do not like verbal offers but sometimes (once in a blue moon) I start out with a verbal offer.

If the offer is ridiculously low, (asking $500,000 offer for $300,000) and my seller has told me that he will not go below a certain price, I tell the other agent, do not waste your time, let's start with a verbal and if we see any chance that it might go somewhere, we put it in writing.

or another scenario is, buyer is out of the country, it would take me 2 days to get the signatures, I will present a verbal, explaining why and telling them that the written offer is on it way. I do not want to take the chance that the property goes under contract by the time we get the offer in writing.

Dawn-even a letter of intent is better than verbal..at least you can spell out the terms and still provide a deposit. Even a low ball offer..let's think about this.. what if? the low ball buyer puts it in writing...does it seem real? Doesn't have a different feel? do you think if agents started putting all of their offers in writing it might in fact...change something in the industry. Our customers..know..what they see...what they have experienced..but if we took the time to educate them in the pitfalls of verbal offers..they might have a change of heart.

I know what you are say about energy and paper..if that is your concern...maybe a letter of intent..1 page!

Ann- no offense but I would have concerns still. See even if the buyer is out of the country or the seller you can have turn around time on your contract to suit that situation.

I know and understand everyone works different. And yes those low ball offers aren't fun BUT it might change things a bit if you required your offers in writing!

the point of the post is to open up minds and not think my way..if you are not closing transactions with people you have been working with for some time this might be a solution.

The way I do business is because of so many mistakes through out the years so many things have changed...the world has changed and so has people..one thing never changes for me and in my listing agreements NO verbal offers.

good post..a verbal offer is a waste of time..the buyers aren't serious and just testing the market..

I don't have a problem with verbal negotiating as long as the original offer is in writing.

David-I train our associates the postitive side of written negotiations...I am one to protect myself..too many times have I seen verbal negotiations very different from what is on the contract. Do I verbally negotiate? I would and do but it depends on the situation..can't say every negoiation I ever did was in writing...because that would just be a lie...but when you have that gut feeling...you know..when the agent on the other end of the phone..is extremely busy and sometimes argumentative from the get go or the reputation is not so hot you can bet...everything is in writing!

I would accept a verbal as a "show of interest", to get the ball rolling. I would make it clear that we need to continue ASAP to a written contract and that the property was not going to be "under contract" verbally, by any means.

Midori-

Verbal offers are not worth the paper that they are written on. I usually appreciate when a submitting agent runs thier offer by me first, and vice a versa- As long as there is some semblence of a real deal to be made- only then should the offer be put in writting.

True! Don't they say that "a verbal offer isn't worth the paper it's written on?" On the other hand, I had an agent tell me to "Put it in writing" so I spent a lot of time and research and letter writing and my client did everything she needed to do and we put together a very tight comprehensive offer package along with a big fat check, and the seller decided that he was not really serious, and took it off the market. He was just fishing and didn't think such an offer would actually happen. We wasted a lot of time. So it goes both ways.

Mott-even a written offer..I provide that courtesy..as a matter of fact I write the terms out completely on a separate sheet I want my offer accepted! What would you consider a real deal today? I have seen properties in Daytona listed for x amount of dollars for the seller to accept something $40,000 below and in an average price...so to me..you won't know unless it is written in front of the seller and the buyer took their time out to put it in writing. You just never know!

You are right Sharon...that is why you have to screen those seller's too! We just had it happen in our office as well.

While I agree with the premise that all offers should be in writing, here in MASS you have to present all offers whether verbal or written.

Hi Bill-.if the seller doesn't want to see verbal offers...guess what..you don't have to according to our listing agreements in FLA. In our listing agreement...we have options...and the option I prefer seller's to take...is no verbal offers...and in most instances..when you explain the pitfalls..usually it becomes their thoughts as well! :)

Midori:

Great post and title. Love it.

While a verbal offer certainly isn't binding or practical it would really depend on who the agent was that was communicating it. Somebody with a solid reputation, I would give more weight because there are circumstances that may prevent it from being written up. If another offer came in then I would call that agent up and let them know them know another one came in and encourage them to get proactive and put on their thinking cap to find a way to get it on paper.

Back in Georgia our forms are online and I couldn't get access (very rural where I come from, ya know). I called the agent up and presented our verbal on the spot because the home would not last. I asked for a couple hours to get back to the office and write it up. I also gave her the lender info to verify their qualifications and the MLS# of their recently closed home.

Not ideal. Not practical. Hated working like that. But, we had to move fast on the home.

Midori~ All offers are supposed to be presented, BUT how in the world can you present a verbal offer and remember or even know every little thing that goes in to a contract? Too much room for error or misunderstandings, written offers are the only way to go!

Midori

I agree with you that it means nothing unless it is on paper and is binding.

Sincerely

Tom Braatz

I find that buyers always decide that if they get a verbal acceptance, they must be a little too high...

I've never presented a verbal offer--it's an insult to all parties.

Midori, I agree with your post. I recently had a contract that was in writing, but the other agent got tired of us doing all of the countering back and forth in writing. He called me and asked me if I could just call my seller and ask him if he would take $x number of dollars before he wasted his time writing up and delivering another counter.

Reluctantly, I called my seller and said "If they write this up will you accept it?" He said yes. I called the other agent back and told him to get me the counter. The very next day he called me and told me they bought another house. I had to explain that to my seller. I learned a lesson there.

I've also recently received offers with $100 earnest money checks, on homes over $100k. We always counter that with $500.

Thanks for the post, Midori, and everyone else for the good disucssion.

We are fast approaching an age of electronic communications where we hardly ever meet the people we do business with, where shorthand seems to replace real words, where part-time or non-committed real estate agents attempt to play at this business and where person-to-person networking is almost gone.

If its not written, it means nothing, since most oral offers are from fishermen, except can you see a real fisherman pretending to throw bait into the water or trying to talk a fish into getting on the line?

No verbal offers! I always say...I'll believe it when I see it :)

The only time I do any verbal negotiating is between the written offer and final counter. Once buyer's financial ability and interest have been established, verbal negotiation can keep your files smaller and cleaner. Of course they need to be finalized in writing to make it binding.

Jessica-I think there are occasions we have to do what we have to do so our customers do not lose their opportunity! Real Estate is always a case by case situation! You made a committment to do it in writing...you just did not have the means at the time and you point out something so very important with the fact if you have done business with someone before. Also providing the additional information...lender info..girl I'd take your verbal..but you can bet..the couple of hours..I'd be counting down. :) You made another excellent point..you gave a time frame!

Are you going to NAR?

I mainly posted this for those that tell me every single day how they cannot get a buyer to commit!

If a buyer can't write a check and complete an offer I don't have much faith they would come to close so why spend much efffort on them.

Great post! A verbal offer is only worth the paper it is written on. I thinks agents do this to get the price down before negotiations ever start. I never discuss parice or terms until the offer is in my hands. Why give anything up before the offer arrives?

Completely agree with you on this, Midori. You raise all the right reasons for not dealing with verbal offers. One risk with a verbal offer, apart from the fact that it cannot create a binding contract, is that you might not present it accurately to your client. If the buyer is serious, pupt it in writing.

Jeff

Don-its very nice to meet you...and your words..perfection..there will come a time...it will all be in written words or typed words!

Midori:

I got your point and I do very much agree. But, there are exceptions. However, they better be good ones when it comes to my client if they are the seller.

Yes, I will be in Orlando if NAR security will let me in the expo! ;) I will also be at Unchained. Then up to St. Augustine to stay at the Casa Monica (I DESERVE IT!!!!!!) then over to Tallahassee for the FSU game (if it's a home game - haven't checked yet).

Vicki-we have forms for negotiations..and I believe in time everything will be in writing..with the keyboard...In the state of Florida..its sue happy and many many backlogged..FREC cases going on...I believe in papertrail..the best you can! We have thick files..its a very good thing..

lots of evidence....papertrail....notes

ethics violations escrow disputes Florida law violations

Jeff-I agree....miscommunication...bad reception...dropped calles..yes I want it in writing

Unless it is in writing you are wasting your time. In California all real estate contracts must be in writing, according to the Statue of Frauds, and must be signed by the parties. A real estate contract is an agreement, enforceable by law, to do or not to do a certain described thing. It is where the parties declare the terms and put their intentions in writing, as in a listing agreement or an offer to purchase.

Verbal Contract-now wouldn't it be something if all states were uniform in certain things? I think so and I know other's would not agree. The standards would rise..so would the quality of real estate transactions. Maybe we wouldn't read half the headlines about real estate and in the negative light!

Jessica-I'll sneak you in if they let me in! :) Good for you..taking a nice vaca at the same time!

Mark-I like the way you think!

Hi Midori. Always enjoy your posts ! May I also make the observation that a verbal offer is so often a sign of a weak sales person ? No real basic sales training, no ability to handle, let alone recognize , an objection, etc ! Good selling to you !

Midori, In Connecticut, the law does require you to present any and all offers to your client. However, once you do and the client then instructs you to present it to him in writing, you can go back with that reply. It just cannot be the agent's decision. I just had one a few days ago. Certainly, we would want to present the seller a pre-approval letter from a mortgage company or bank, terms and conditions would need to be in the contract, as well as, the names of both parties, a deposit check, among all the other goodies included in the P&S:) I often think that people just like to throw out an offer without going through the motions. I have even had agents ask me if my seller would accept xxx for a property, because they didn't want to waste everyone's time if they were not willing. Scarry! Again, I contacted my seller, to obtain the answer to the agent's request. It was no, please write up an offer. If I felt that either party was not thinking wisely, I would find an attorney, quickly.

No verbal offers from me either. It is just crazy, unfortunately, in this day and age to trust either party will follow through with the offer. The sellers could turn around and sue his agent, the buyers could sue the seller, it could go on and on.

Good post ...I absolutely agree. They are a waste of time.

As far as I know the statute of frauds applies to all states -- all enforceable offers having to do with real state must be in writing. What I see even more often with both sellers and buyers are verbal counter-offers -- they have the same problem -- they must be in writing to be enforceable.

Bill-some would definitely make the same observation..we have to embrace the fact we are salepeople too! It seems salesman is a bad word. Saleman = Successful Negotiations..

Midori, I wrote a post a year or so ago explaining one way to handle a verbal offer. And that was to pullout a blank contract while the other agent is on the phone and simply ask him enough questions to complete it. Then send it over for signatures. If the buyer signs it, present it, if not well...file 13. I wouldn't do this all the time but I have. And the reason I did was because I had a feeling that is was a case of the REALTOR(R) not doing their job and NOT the buyer requesting his offer be presented verbally. So I decided to take it upon myself to do what was needed to get an offer for my seller. It worked. We were able to negotiate a deal and we closed. But this was truly an exception.

Joan-that is the key enforceable! We have to safeguard our transactions. We aren't selling pencils we are selling a life changing event in someone else's live. Real Estate! So when the verbal turns into nothing..we just turn around and say...sorry seller..sorry for your luck! For me easier said than done..

I completely agree with you on this, Midori. It IS difficult when you get a request for an offer to be presented verbally. I think sellers will be suspicious of someone who is not willing to make their offer in writing, and certainly without documentation the risk to us in presenting the offer is that it may not be accurate. BB's suggestion is a good one I think. But if they don;t want to put their offer in writing they may also not want to sign a document that we prepared.

We have a conter offer form for making counters written as well. although in a few ase where time was an issue and access to faxes, etc. I have had verbal discussions with the other agent, and vice cersae, to at least get to the point where folks seemed to agree (if the terms were simple, say a different $ or closing date), and THEN put that in writing for the parties to signed.

A well deserved feature, adn good to have all the discussion.

Jeff

Broker Bryant-I remember that post very clearly and I thought it was briliant how you handled the situation. Just like I told Jess it's case by case because you never have two alike.

Jeff-you know I have motives here...the discussion is much better than the post and of course I like to email this to our associates from time to time. It let's them see what agents across the nation are doing. It also helps in changing perspective when need be and I too learn a thing or two myself.

I loved BB solution and I also loved the fact that Jessica provided Mortgage contact info..that is good stuff!

And you see made me think about cell phones..connections..bad reception! This is all fantastic info.

verbal offers are usually garbage offers, that why they don't want waste the time by putting it in writing.

Midori - I have never called with a verbal offer before, nor have I ever had a client respond to one with anything concrete, but I have called listing agents to ask if the lowball offer that the buyer is considering is worth putting on paper or not. Sometimes, they say to bring it, but usually they laugh. It actually does save all of us some time when I can communicate this to the buyer, and the seller isn't bothered with nonsense.

I have worked from a verbal offer by a buyers agent 2 times in the past 12 months, and both times before the offer was reduced to writing, GUESS WHAT, yes you are right!!! The client changed their mind. I am from the old school, and these offers came from newer agents. BUT, it WILL NOT happen again. I will not entertain a verbal for my client. My fuduciary duty is to my client, and I will protect them. PUT IT IN WRITING!!

Jason-in our market place you'd be surprised the list price vs. sold! It might really surprise you that if you write it up when the listing agent is laughing..that you and the seller and buyer may get the last laugh. See what's happening in Daytona Beach

Listed for $849,000 sold for $625,000

Listed for $269,000 sold for $215,000

Listed for $239,000 sold for $190,00

As you can see there is a substantial difference. listed vs. sold...not shortsales or foreclosures..write it up is my feeling you might have a better shot!

Jan-I am with you on that old school...it never goes out of style...I just finishing say this to my husband and then read your comment!

Absolutely.

Don't look at or discuss an offer that hasn't been conveyed, meaning signed, by one of the parties.

If initial offers are prepared with good attention to detail, all addenda included, dates for proposed closing, check for earnest money, signed detailed lenders letter, confirmed date for home / radon inspection, often contracts will be accepted in their entirety without even a counter.

We'll been successful with offers that were lower than the competition many times because the listing agent and seller believed that they would have a smooth transaction. Which they did.

The time for preliminaries is before you prepare and present an offer. There is strength in clean, complete documents.

Putting the offer in writing makes it real and any potential buyer who won't do that is wasting everyone's time in most instances. As always there are exceptions and I like Broker Bryants idea.

I think so many buyers today are bottom feeding. They are asking if the sellers will take these low prices. I have found that they are going all over town looking for the best deal and don't want to commit to a particular property. If they are serious about buying, they should just write... this way the sellers will either counter or reject. You never know what will happen. The seller may just be ready to sell at that low price or the buyer may come up.

Sometimes throwing out a verbal low ball offer lessens the shock of a low written offer. You might throw out a low number, follow up with some low comps, and then submit your offer in writing. Maybe higher than your low verbal offer. It kind of softens the ground and plants the seed that their home might not be worth as much as they thought.

I agree with you 99% of the time but I have had several occasions where I did use a verbal offer or a Letter of Intent. These were in very high-end homes and the sellers' agent actually encouraged us to start with something verbally just to see if we were even in the ball park. I think that is why in commerical deals they use Letters of Intent first. Anyway, those are my exceptions but otherwise I agree!

Lenn-I have to agree with you...to me presenting an offer is an entire package...no questions.. You say things so poetically! :)

Tim-some may go for it...as a listing agent I do not. When it comes to communication prior to an offer....the phrase less is more comes to mind. You have a customer and I have a customer. Once there is something written..then we can chat! :)

Hi Diane-I say use a letter of intent vs. verbal. In writing..

In SC and I suspect many other states, for an offer to be valid, it must be in writing #1 and signed by the buyer. Verbal offers are not offers, they are balloons people send up to test the air. Many balloons have hot air in them, as does the verbal offer. Don't be dragged into this; restate that all offers must be in writing to be valid offers. I will not embarass myself by taking a verbal offer to a seller, period.

Midori - in Georgia we are required to present all offers, verbal or written. This is somewhat interesting since wwe are also supposed to only make written offers. I always go after a written offer, however, there have been a couple of times when I submitted a verbal offer. They eventually (usually) turned into written offers.

Midori, great job of cutting to the meat of the matter. Can I give you a verbal ok on the loan too? How about verbal loan documents?

Sheila-good for you! :)

Fred-if you think it will go through..and we can make it through the closing table do you think the title company will accept it?????? :) Verbal loan documents...oh boy!

Midori - I believe that a written offer is the only way to go... As others have noted that there is more to an offer than just the sale and purchase agreement, the disclosures and mortgage pre-approval are equally important. Half the time, the buyer hasn't seen them when making the offer.

I love the post!

crazy that some realtors think that a verbal will fly....geez

I guess I am not the norm from everyone else here writing a comment. If a verbal offer came into me on one of my listings, I would happily call my client and give them the basics. It is my duty to my client to present any and all offers. While not enforceable until written, I think I would be doing my client an injustice by putting my "dislike" of verbal offers in front of doing my duty to them by presenting the verbal offer. Someone commented that they ask their client for permission to reject an offer....you've got to be kidding me. That's putting your beliefs about the offer onto your client and not letting them make their own decision. Our duty is so counsel our clients, NOT tell them what to do.

The easiest thing to do when a verbal offer is laid at your feet is to tell the submitting agent to give you the details, but that nothing is good until it is in writing. I have the feeling most agents would agree to this. Submitting a verbal offer is NOT the sign of a weak or lazy agent, in my opinion. There is usually a reason to it, but it is not my right to judge an agent for doing so. I usually ask the agent to send me an email with the basics, which I then forward to my client (because most times I am driving somewhere and cannot write things down).

The verbals I have submitted or received usually deal with extra circumstances, say added contingencies and the question of whether a seller would except them, longer than normal closing times, etc. Before you are so hasty to deny a verbal offer, find out what it is first and then do the duty you owe to your client by presenting them with the offer, instead of taking offense to it and projecting that opinion on to your client.

Midori, you hit the nail right on the head with this post! It's so easy to talk the talk without walking the walk!

You are giving the best of advice! If it's not in writing it's not really an offer! I had a seller the other day, one which we have a contract pending on, tell me that so-and-so said they would have given them $50,000.00 more for the place than what Brooks Prime Properties sold it for!!!!

WHATEVER! My seller believed him. I told him...go get it in writing and we'll work it out! HA. I didn't hear back from him with another word!

Great post Midori,

Later in the rain~Deb

Yes, I don't accept them either. I also don't accept offers without earnest money down. Those are from buyers floating lowball offers, mostly, who are tossing multiple offers out there to see which ones will stick.

Jennifer-I said it before I will say it again...each real estate transaction is a case by case situation..no two are ever alike..I don't steer customers one way or the other...I present the facts..and they make that decision. In most instances...if you do present a verbal..what does the seller usually say...get it in writing.

When the seller receives the low ball verbal offer what do they usually say? Oh, the buyers are not serious!

When we present the facts...its the good the bad and the ugly...counseling...part of the marketing proposal.

Verbal offers can work but most seller's want to see everything in writing. Love the idea of putting "no verbal offers" in the listing agreement! Great post. Thank you.

Midori and the AR gang -

Legally, in the State of Illinois, a VERBAL offer is not an offer at all!

It's like a whisper, out in the distance. No better than hearsay. Nothing. Bupkus!

Here in Chicago, we don't have to go to the step of officially SAYING ANYWHERE "No Verbals!" because they don't even constitute an offer to begin with.

I like your angle relative to time wasting as well. Even though we're not obligated to present them to our clients, we still might DISCUSS them as "Feedback." They do more than rile your seller even more, and possibly make them even more intransigent if their price is too high.

Verbal offers point to a lazy buyers agent without a spine, or the ability to control the situation on behalf of his or her buyer client.

Folks, don't let them EVER get to you. Say, "Later!"

You agree?

DEAN & DEAN'S TEAM CHICAGO

Basically, it's not an offer until it's in writing. It's a great waste of time to negotiate verbally before you have the initial written offer.

If my buyers are serious, it's my job to take the time to put the offer in writing, including a copy of their pre-approval letter, and get the earnest money check, and option fee check. This is the time we sit down and decide just what kind of offer they want to make, and commit it to writing for their benefit as much as the seller's. It also allows them to see their own offer in writing and consider whether, if they were the seller, they would be inclined to take it seriously.

I've seen more buyers (or buyers' agents) trying the verbal negotiation tactic recently than in times past. I agree with others who say that these are fishermen, but fisherman with no real bait.

Verbal counters save time and I appreciate it when another agent does this. I do agree the initial offer must be in writing.

Since I am so tired of giving my hopeful buyers written low ball offers, sometimes it might be nice for the other party to be upfront about how low the offer might be. Written is always best but I have wasted a lot of paper and energy this summer and so have my sellers!

I have never done a verbal offer. I always explain to them you have to do a written offer.

Midori, Please "put it in writing".....that way everyone can "follow the dots" so to speak. I'm with you, I also have been around a while, since 1989... boy, we see everything don't we.

Great post Midori.. if it is NOT in writing.. it does not exist. All offers should be in writing and agreed upon by ALL parties involved.

I do not present verbal offers because it is too easy for mistakes and misunderstandings to occur. Sometimes, when it's down to the last volley or two in a drawn-out process, I might present a counter to the counter to the counter verbally, but I get the agreed upon terms in writing and initialed immediately after hanging up the phone.

Good post for discussion. In this market their are those who want to reinvent the wheel, particularly buyers. It isn't worth the paper it isn't written on. There are too many complexities in a contractual agreement that all parties need to be aware of and fully understand. That said, I still owe an obligation to my client relaying any interest in their property that may result in a meeting of the minds in writting.

Isn't a Realtor supposed to present ALL offers??

HI MIDORI!

You're right and I love the way you presented that! Have a wonderful week!

we all have to report verbal offers, and the answer is always the same. put it in writing. there is really no other easier softer way.

best

Good Post! I've had clients ask me, while we were all at dinner, if I would run over to the listing agent's table and "float" a Verbal offer. Instead, I wrote terms on an Outback Steakhouse paper napkin and handed the agent the napkin and a $20 Bill. We live in a very small town so by dessert, the sellers had walked in for some shrimp on the Barbie, at the text messaging urging of their agent and countered our casual offer. In South Carolina, as long as the offer has the 5 elements of a contract, it does not matter what it is written on or even how much the earnest money may be. I do suggest putting a re-write on an actual form, makes the contract easier to read.

AUG

2008

Agreed, they are a waste of time, but it seems in this market we see more buyers wanting to do this to "see how it will fly."

There are always exceptions to any rules. And land mines everywhere. The war stories in the comments here are fun to read.

Written contracts protect the Buyer, too. I have seen a Seller receive a written contract and accept it verbally, when conveniently out of town. When another offer came in, the "contract" was, like it says above, not worth the paper it wasn't written on.

I really do not like to work with verbal offers, for all the reasons you outlined. There are too many loopholes, and I've been challenged by other agents asking me if my listing agreement does have the "no verbal offers" checked. If they are serious and qualified, they should have no problems putting their offer in writing.

No verbal offers here, to many low balls out there right now.

Good advice. You can list my home anytime. You represent your seller well.

We were always taught that a verbal offer is not worth the paper it's written on!

I've never heard of one being done here in North Carolina until recently. I acquired some new clients because the dual agent they originally contacted only presented a verbal offer, didn't want to spend the time writing anything down. Never even got an earnest money check from them. Needless to say they lost that home, and now wanted to get the next home.

Yes, they were lowballing, and yes, the agent had just moved here from Florida. But I've found that when buyers see how long it takes to fill out all the paperwork, and what's legally involved, they become much more realistic about what price they are going to offer.

We have to have offers in writing. Once a buyer's agent insisted on getting an answer on a verbal "vague" offer she phoned in... we kept requesting it in writing for 3 or 4 days, after 4 days no written offer and the buyer's agent gives us a deadline of 5PM to get an answer from the seller. How on earth can we do that when we don't have an offer? Well finally we received an offer in writing 5 minutes before the so-called deadline. Geez. Needless to say sellers said no thanks.

Even in Colorado, where the law requires offers to be in writing, we still get lazy selling brokers. Our standard contract takes about an hour to complete, so there is always an incentive to find a lazy way around it. However, given modern technology, it is very rare that we can't get a quick turnaround on a counter offer -- with signatures. I have found that giving a buyer or seller a written, and therefore actionable, offer or counteroffer is much more effective than just a verbal price.

Years ago, in the days of multipart forms, I watched a crusty old broker working with a couple that had walked into our office. She started out by asking their correct legal names, which she wrote onto a purchase contract. They, of course, asked what she was filling out. She told them and asked "You are here to buy a home, aren't you?" What a great prequalification!

Wow,

I had no idea that real estate professinals made "verbal offers." In 20+ years in the home buying business I don't think I've ever made one. (Either for myself in the early days or for a client now that I am a real estate broker.)

Good post!

It is also a good take away saying you are so far apart that it is not worth our time to repsond on paper.... Just another point of view.

"...Its our job to explain why it's important to get our offers in writing and just because your customer wants you to present the offer verbally, I have to ask is this a service or dis-service?

If they hired you, why not have the guts to explain the pitfalls in verbal offers?..."

Pretty high handed post here. Maybe on the mark for some states, but certainly not all.

As realtors had to explain to NAR very recently, All Real Estate Is Local. Our state law mandates that we present all offers. The attorney owner of our brokerage firm states that we will present all offers.

Duh...!!!

That's right George, I call it like I see it and in the state of Florida we have options and you do too! You can actually explain the pitfalls of verbal offers and the plus's ? That would be a consulation...a marketing proposal.. Also the seller who is your employer..can request written offers only..in an attachment on the listing agreement. Duh You do as you see fit and please your attorney broker...but for me...I want to sell more real estate...I want to represent the seller the way that I should! Maybe next time try and remember to log in and maybe we can get some good conversation going George :)

George, I'm assuming you are referring to legal offers (in writing)?

Thanks Sheila- I couldn't have said it better myself...I knew you had my back! :)

As some have pointed out, the issue with low ball offers is often the listing price, not the offer... unrealistic sellers, very often, want far too much for their property, given the current market... and many listing agents figure they will slowly work the price down to where it sells... this too is a great diservice to the sellers, sicne if the house sold sooner, they would likely have made more on it than by waiting... but listing agents often will take unrealistic listings just so they have it.. then we blame buyers for low offers, but this is off topic.

Most of our agents negotiate verbally after a formal offer.but we never submit or ask to submit verbal offers... if our buyer requests that (and we have never actually had a buyer ask us to do that) then we would tell them that we dont submit offers without proof of ability to purchase... which has to be written, and we always require our offers to include a copy of a deposit check for earnest money (we dont actually deliver the earnest money until the offer is either accepted or countered, as we have had difficulty retrieving the earnest money on occasion, without cause.

As for the comment above "If I felt that either party was not thinking wisely, I would find an attorney, quickly." As an Attorney I would have to say that people that are not "thinking wisely" are not by definition criminals, nor have they, just for that, violated any sort of ethic or legal standard. Thinking wisely is not required of most people... why would you call a lawyer right away if people were not thinking in ways you considered wise? How do we know that what you think is "wise" others will too... and even if we did, what is to say that the "unwise person" is truly unwise?

We have seen people who could not be confused by the facts... and beyond that, we have seen people who give others the benefit of the doubt, and assume that if the other disagrees with them, it is because they are uninformed... they then try ot inform them... if that does not make them agree with you, then they might get classed as "ignorant" or "unwise" -- but just because they do not agree with you does not make you wise and them foolish... i tmight jsut as likely be that you are the unwise one...

Verbal offer? What's that?! If an agent calls up with a verbal, I would assume they've gone on a fishing expedition which only allows the Listing agent to then shop that offer. Nobody is getting representation in this case. I'm with you - just say, "Next"...... Or go ahead and fax me that offer in writing and we'll talk.

Lisa

I have had a few occasions where we worked a verbal, but, in each case the purchasers presented a sizable deposit. Did the deals work? No, but money talks & you know the rest...

Ah Midori- To verbalize or not to verbalize and when is it right to write- (?) the two can be wrong because you forgot the moral of the two wells.

Start Well and Finish Well

What if you are out showing homes to your client and a discussion about making an offer opens up?

It might go something like this...

Client- "I like it and would offer XXXX"

Me- "Before we spend too much time writing it up, let's make sure it is still available. Sometimes homes are going under contract even as we are writing our contract"- "Hi Fellow Agent, this is me and I have a client that would like to make an offer on your listing, is it still available?" I have been asked to write the offer at XXXX. Is this something the seller will entertain?"

If I get a "yes" I might also ask about other offers, any existing inspections, seller awareness of differed maintenance, potential closing dates, objections to certain buyer needs, inspection contingencies etc. At the same time I might let them know about the buyer's situation, financing requirements and underwriting requirements. The seller needs the buyer's loan just as much as the buyer does. If this slipper ain't going to fit, I'm looking for another Cinderella and I'm not wasting anymore time on this stepsister. The highest level of professionalism says "this is an offer".

As a seasoned agent, I appreciate not wasting anyone's time. I didn't waste yours by requiring you to come back to the office the pick up an offer that would be rejected. And you didn't waste mine by expecting me to write an offer that would be rejected, or put into a back-up position, or that would not compete with an offer already presented. Your client knows you are working and mine knows I am working. Don't expect me to work an hour or two just to help you justify keeping that soon-to-expire over priced listing.... not that you would.

Of course each part of the world has their culture and some parts never negotiate verbally- Me too. I have not as of yet negotiated any term of an offer verbally- I just speak for my client and use my knowledge and influence to try and bring a buyer and seller together. But I always find it prudent to ask a few questions before acting in haste. Maybe the seller just lowered or is considering the price and I'm the first to hear about it. I have been there.

Why not nail down some of the buyers requirements now and see if the seller can comply- when I have a client ready to make an offer I am going to call you, and I am going to ask all the questions that assure we start well. Let's be professional about it. If you would rather not pick up the phone and call the seller to ask a question or confirm a seller position, be sure to put "I am a Less than full service agent" on all your advertising and business cards so the rest of us know. The law says we have to present all offers. It doesn't say "carved in stone". And the seller may accept these terms to the offer.

My take is that some agents don't have much experience about this business as they are just getting started and in my culture I can rarely present a written offer to the seller directly anymore. If the agent has little to no experience with this situation, I'd like to know that prior to writing an offer they can't understand or place my client's offer in a situation where I am negotiating through an inexperienced agent who is merely delivering documents.

In any case, if there was a better offer, or this offer was not suitable for the seller, writing this offer would be wrong. And a re-write or counter offer of some simple over looked term the listing agent didn't disclose can allow another offer to slip in under my offer while I'm re-writing or re-signing some little "i" dot or "t" cross. What a let down for an excited buyer family who has finally found a great home.

So, for those of you who have to have it in writing- and for those of you who don't- which is the real waste of time and resources? Should I waste mine, yours and the seller's time presenting them with a written unacceptable short closing date offer? Should I waste the buyer's time and mine writing an offer that will be rejected or negotiated to a dismal death? You'll be hard pressed to waste my time. I always ask my seller, whether is it is to a written offer or just the start of one whether it is something to entertain it or not. Who knows, maybe they were getting ready to change their position or this hadn;t been discussed and is acceptable.

I think once you have the written offer, it is always most professional to say to any verbal statement or offer "we can only negotiate that once it is reduced to writing".

Family Crest Real Estate-WOW is all I can say. Let me explain..that real estate transactions are a case by case situation, always, always, always...with every facet of real estate. For me if a buyer is interested in a property..I do call the agent prior to make sure the property is available.I request a seller's disclosure and do other things prior so yes I would say I start in a professional manner.

I work very differently for buyers......than I do for sellers and I really understand how you do things for your buyers but for sellers I am very different probably just as you are..doing my job and protecting their interest.

Sometimes less conversation is more....

Sometimes conversations prior is not good.... Something blew up in my face over the weekend..and it just adds to what I am saying.

You have some brilliant buyer's agent tell you that there customer is going to put in a full price offer...and then tell me they'll think they can have it faxed by Saturday...the key word here...think....I tell her ok....guess what its Monday and I am still waiting.

And guess what I did......

Called the seller left a message there is a chance an offer is coming in, will you be around?

that's why sometimes less is more just as I stated in one of the comments.

"WE can only negotiate that once it is reduced in writing!" I gotta hand it to you...now that is excellent and thank you for sharing.... you can bet this will be introduced into our company.

Oh and Family Crest Real Estate-I still believe..written offers! :)

I am new to bloging but I have learned that success in Real Estate is all about change so heres I go!

One thing I love about real estate is that no deal is every alike, what almost never seems to work just might work this time... Right about now I would love to have a few offers even if they were verbal. I have been selling since 1985 and each time I think I have scene it all then something new and different pops up, there is always a surprise, and exceptions a new twist, so I am a full believer in giving it all I have. Just give me your verbal offer and lets see what we can do with it, it only takes a few minutes to pick up the phone and say "Mr Seller I have a real estate agent who has abuyer with interest in your home, there is not enough interest yet to put anything in writing so they have decided to open up a dialog with you.... Here's what they have said they will do.... I don't know what kind of person they are, don't know if they will keep thier word, generally speaking a verabal offer is not safe to deal with, Mr seller what do you want to do? I recommend asking the buyer to put something on paper but maybe we could talk about his proposal and give them a responce. I have turned plenty verbal offers into SOLD! you can't tell me thier not worth the time it takes. I agree that there is a better way and if I have my choice thats the way I will do it. One thing I always ask the buyer or selling agent to do is to submit a verbal in writing, simply send me an e-mail or fax me a note with the verbal message you want me to deliver to my seller and lets see what happens. I really like letter of intents when I am representing buyers and hate them when I am representing sellers.

I once had a buyer fly into town with very little time and needed to buy a home soon but had to have a deal would not consider fair market value. He wanted to make multiple offers on multiple houses! at first I refused but then during the night I came up with an idea, the next morning I called him to my office. We sat down at the computer and wrote a letter of intent to five home owners. In each one we spelled out the terms and closing date we were looking for, we then told the sellers up front that the buyer was looking to make a profitable transaction in the buyers best interest. The buyer had five choice and would be happy with any one of the five. The buyer is asking that each seller respond with the lowest offer they would be willing to consider, the buyer would then choose from the five responces the offer that was in the buyers best interest.

Results: 2 of the buyers got angry and told us were to go! 3 of the buyers responded with offers, 2 of which were lower than the offer my buyer was thinking they would sell for. My buyer then accepted the offer that was in his best interest, which turned out to be $100,000 dollars below fair market value and $50,000 below what it was listed for. My buyer was so excited and has sent me lots of business since. His deal in his favor gave him an updated 6,500 sq. ft. home for only $390,000! and it all started with creativity, opening a dialog with sellers and tossign tradition out the door.

Not something I do all the time nor do I support its practice but some times you have to think outside the box and be ready when some one says Deal or No Deal!

Darwin White

RE/MAX Properties

Chattanooga TN 37421

www.RealEstateHomeLink.com

http://activerain.com/blogs/darwinwhite

Midori - Time and again I have had both buyers and other agents try to make verbal offers. Never, not once did any of these amount to anything. Unless someone is willing to put themselves out enough to at least put together an offer via phone with their agent who can then write it up and have them sign electronically, they are not really serious.

Midori, Sorry your phone call turned phoney. Give the agent a call and find out what happened. Maybe they got stuck on a consession or something and the agent doesn't know how to write it up and needs the broker's help, who didn't or hasn't yet.

My first objective to is bring buyer and seller together- it doesn't matter if I represent the seller or the buyer. It isn't my deal. I just represent one or both parties with a fiduciary responsibility. I don't have ownership of the transaction. So I'd recommend that you get in the river to see if you can save the deal.

I read many comments from agents who try to bring the deal together. That to me is professionalism. I have a job to do- Why be the rock in the river trying to stop the water from going by- it just wears the rock down. For what ever reason the seller doesn't get to entetain this offer. Give them some closure on it and find out what happened.

You want that water flowing to your deals, not passing you by. Putting words into listings that are not gracious and supportive block the flow of deals to your listings. Rather, just tell the seller to expect a few low offers and when they come in, the seller will see how right you are.

I like what Darwin said- Every transaction is different. He took a path of of least resistance. He stayed light on his feet, found a way to put the prospective task into the corner. He threw a few punches out there, put a few deals on the ropes and scored a knock out. I'd say you started well and finished well on that one Darwin.

I guess when you are a real estate agent sometimes you are a boxer in the river..(?) We wear a lot of hats don't we?

Good luck Midori.

Darwin-Interesting concept but very honest and as a listing agent I would appreciate that! The letter of intent is much better than a verbal.

Family Crest Real Estate-today was one of the quietest days we experienced in a long time..people are preparing for a tropical storm and have other priorities right now and I truly understand. My conversation with the agent has not taken place..besides right now the seller is going through some rough weather right now..another part of Florida.

In our area it happens frequently verbal offers turn out to be NOTHING..why we are a vacation area..college town and events. One person multiple offers.. and Besides why would I want to get a seller excited over an offer that is not enforceable, I ask am I doing my job effectively? I understand what you are saying but sometimes those same words that you question are the same words that protect the seller.

I really appreciate your thoughts and openess for discussion..I'll stick with written offers and letters of intent but never say never...I'll say it again..every real estate transaction is different. :)

AUG

2008

Sometimes I will ask the listing agent if they think it is even worth writing an offer if the buyer wants to "lowball" and that is just to get an idea of how to structure the offer, but always get it in writing for sure. Verbal offers can leave you wide open to another agent coming in and grabbing the house out form under your client. Write it up!!!

Marti W

Thanks or bringing this up. Laziness and incompetence breed this sort of unprofessional behavior and it has no place in the world f a true workig agent who strives to give the bestservic to thei clients and to fellow realtors.

Midori, This is so true. Thanks for posting this great new concept (haha). I can't understand the idea behind this verbal thing. Either put it in writing, or move on. An offer "In writing" requres a response "In writing".

Hi everyone I really enjoyed this great conversation we have going...as I read the different viewpoints...it comes down to a couple of things.

Each transaction is different...your customers are different

Verbal offers to me tests the waters not in the best interest of the seller..sometimes too much communication can back fire in your face!

Verbal offers are not enforceable from where I am sitting so why would I encourage a seller to entertain it period!

As a listing agent our job is to represent the seller and to encourage them to take a verbal is just not in their best interest when an verbal offer is not enforceable.

I disagree with the posting because imagine the record keeping that you have to deal with when the contract is submitted. I would not want to receive an offer and have to keep track of it for a few years base on the R.E. law for each state when the offer is nowhere near close to the best offer in hand.

Philip-In our state we do not have to keep those files..and even if we had to...I'd still do it in writing. I guess for me the problem really is the fact it is not enforceable. That bother's me..especially if I am a listing agent and the buyer changes their mind..guess what ..to bad for the seller.

Hi Midori, I am not sure if you get to read this WOW you did a Great Post!! Got everyone talking and thinking.I love it.

I agree Verbal offers are NO OFFERS at all.When I potential buyers call me and I can tell it will be a totally unacceptable low ball offer I graciously suggest that they get another agent to Represent them and I will do my best to get them a counter offer(in writing) Warm regards, Endre

endrebarath@themls.com www.endrebarath.com

There's a lot of lazy agents out there who just don't want to do the oh so hard work of filling in blanks on a contract. But then again, once there is at least the initial offer I don't mind negotiating verbally if there are only one or two details that need to be ironed out. Then we put everything in writing that was agreed to by both parties.

Can you believe it? I actually worked in an office where the agent, soon to be broker, to a written offer on an island property, listing price of $1,800,000 with NO deposit, AND the listing agent took it, presented it, began negotiating AND they let the great pretender, who turned out not to have a nickel keep them jumping for the next month while he "negotiated" with the mystery investor/s. Hard to believe his still happens.

Todd nothing surprises me and sometimes people have to learn the hard way including myself..sometimes we just think that everybody loves us..and everyone will do the right thing..wishful thinking.

AUG

2008

Hi!

We don't do verbal offers. They are counterproductive. We want to be fair with both sides. If the buyers aren't willing to put it in writing, how serious can they be. Thank you for reminding us

Kieran and Cecelia

Great post. I will not waste my time with any verbals. Put it in writing, and we'll see what happens.

Great post. Verbal offers serve no purpose unless they are backed up with a written offer. Agents need to meet with their clients, decide on what their offer will be, and submit it in writing. My clients will only review written offers; they want to know "all" the details. I regard verbal offers as a "fishing" expedition and I have had those discussions with other agents. I really can't respond on behalf of my client and simply tell them that they need to put their offer in writing on a standard contract and my client will look it over.

Hello Midori,

Excellent post! I linked back to it in my blog entry today. I hope you dont mind :o)

Tim

Midori:

Thanks for your article. We recommend that our buyer clients not get involved with presenting verbal offers, because that aren't worth much. We recommend that our seller clients not consider verbal offers until back up by the written commitment and loan authorization.

We are in the midst of USA National Friendship Week, Aug. 17 to 25, 2008.

Harrison K. Long, Explore Properties Group, Irvine, CA

Our office policy is no verbals and not even letters of intent, even in commercial deals.

This is sometimes hard to explain to buyers though and leaves me wondering if our industry could come up with something close to an agreement written on 1 or 2 pages. Something quick and easy, but somewhat binding. (I know that sounds like a little bit married but...)

I think with a seller it's a no brain-er... the only response to another agent would be, "put it in writing and I'll present it."

If representing the buyer, I feel the first offer should get refused (in most cases), otherwise your offer was too high...this could be a whole other blog.

But with a lowball offer, even if I feel its way too low, I feel I still have the obligation to present the offer the best I can. (any reasons, b.s. included) because I represent the buyer.

I think its okay to tell the buyer "this offer is way too low, but if you want to make it let's put it in writing". and sometimes the other agent calls you back asking if your are out of your mind or how did you come up with that price. You just have to suck it up and explain straight faced how that price makes sense and why. and you do feel like an idiot, because you know the price is off the wall but you either do it right or cut the customer or client loose.

but back to subject: in those cases, I wish there was a quick 2 page agreement of sale.

some clients trust you with the paperwork and will skim, quickly read, initial, and sign a low-ball agreement without flinching.

But it is painful explaining a 21 page agreement to a buyer when in your heart you know it won't be accepted. But you should educate your buyers and this is one way to do it.

How nice it would be though if a 1-2 page agreement of sale existed.

AUG

2008

Having not read ALL of the 130+ responses before me, who was it that once said...

"verbal offers aren't worth the paper they are written on" How prophetic !!

With technology that is available today, we don't need to have verbal offers. Of course the selling agent is hoping that the usually difficult offer can be negotiated before the written offer comes in. It is 100% of the time to save the selling agent time, not the listing agent or seller. So I just ask for the agent to send me an email outlining the main points of the offer. Since it is in writing, it becomes a valid offer. My seller can reject or counter with his own. Both parties win.

A verbal offer isn't an offer at all. We are in the business of writing contracts. Legally, it has to be in writing. I will only take a properly written/executed offer to discuss with my seller. It makes a huge difference to the seller, to see that the buyer was interested enough to take the 5 minutes it takes them to sign the paperwork. With the technology we have these days, it should take no more than 10 minutes to prepare an offer and 5 more mnutes to get it signed - assuming we have been doing our jobs properly from the beginning, which means we have already sat down with our clients before the offer stage, and explained all the forms and all the clauses, and are satisfied they understand everything. That way, when the offer is put in front of them, it should be quick and easy- and the only way.

I really think if we are professional, and we educate and explain things to our clients properly, they will do it the right way.

Wonderful Post, to bad the agents that want to test the waters with a verbal won't read it or get the point. They are obviously working with a customer not a client or they would never even think of trying that.

Have A Great Day

We are in different times now and as little as a year ago, there were no verbal offers around here. Now, I have people wanting to know what the lowest price a builder will take, so it only takes a minute to call them up to ask. Builders/Sellers are being a little more lenient with the process.

Hopefully a sellers market is just around the corner and we can get back to written offers as it was in the past

How many times have we heard, "Put everything in writing?" It is so easy to lose the property for your buyer by being lazy and not submitting a written contract. Believe it or not, there are some neighborhoods in Dallas with homes that consistently receive multiple contracts. All the more reason to submit a written contract.

I think there is no place in our business for verbal offers. Yes, call the listing agent to get a "feel" for the price and terms their clients are looking for; if you are lucky, they will indulge your questions. In the end, you want what's best for your clients - and that's the protection of a written contract. No contract is iron-clad, but "Paper trumps Rocks"...and verbal contracts.

For me...it all depends on who I'm representing. If I'm representing a seller is this kind of a market and a buyer wants to make a verbal offer, it's generally a bad offer. If that case, I don't want to waste my time or the sellers batting around the paperwork that get's us no where. If it's a good offer but they don't follow up on paper, at least you know early on and you've not lost any market time anyway. If I am working with the buyer.....I kick those kind to the curb pretty quickly.

Hi Midori, I enjoyed reading your post as it did not waste MY time. Verbal offers however do. This isn't a car on a lot that read 25,000 OBO (or best offer). In order for me to take the offer serious, it will have to be a written contract. Great job.

It needs to be in writing... Statute of Frauds

AUG

2008

Midori, great points! We also include the terms of no verbal offers in our listing agreements. I've even found that some agents use this as a ploy to try to find out how low of an offer the seller may be willing to consider... it seems to be more of a case of desperation and resistance to doing their homework and looking at comparable solds to determine a fair offer. As an agent, you risk losing credibility with your sellers if that verbal offer never comes to fruition.

Midori - you certainly pressed the right buttons on this one.Lots of interesting comments.

Since I am also from Florida, I agree with you that a verbal offer - which in Florida is unenforceable - is not useful.

What interested me is that the group responses seemed to think they might consider the verbal strategy in the case of the low offer - that is the last place I would have considered it. Homeowners are a proud group and are likely to respond negatively to a telephone call or other verbal discussion of a low offer. But if you place a written contract with a deposit on the table in front of them, they have to take it more seriously. If they say no at that point, they are, in effect, buying their house back. The written document brings a "proper note of solemnity" to the proceedings and, in my opinion, you have a better chance to get an acceptance or a reasonable counter-offer when you indicate that the potential buyers are serious people and need to be considered.

Just my opinion.

Ted-I could not have said it better myself..that's why low ball should be in writing..placing an offer on a house should be a little effort on all parties don't you think? Thanks for rounding out the comments. Your words magnificient! Thank you.

I always prefer written offers for my sellers. For properties I own personally I will take anything and make it work.

I hate verbal offers. But I just present them to my sellers and tell my sellers that their first counter-offer should be "put it in writing". LOL. But then I had buyers make a verbal offer a couple of days ago. However, the buyers and I already knew that this offer was not going to be accepted. The house is falling down and has been on the market for 2 years. When I called the listing agent, I actually offered to put it in writing if he thought we wouldn't be wasting anyone's time, but the other agent called me back within 5 minutes with the sellers rejection and bottom line price, plus a whole lot of contingencies that were all stacked in the seller's favor. The house is about 6 months shy of needing to be torn down!

AUG

2008

Verbal offers are basically just "feelers"....I've never once heard of a verbal offer going the distance exactly as it was first presented. The two most important aspects of a Real Estate deal are: Price & Terms. Verbals always give a price, but NEVER fully address the terms, which are just as important as the price.

-Peter H.

AUG

2008

No verbal offers for me either, but I did make one horrible mistake this week. Another agent wanted to offer my buyer (list and sell side on this one) a contract to buy their assignable contract. We close in a week so I felt the time pressure to relieve my buyer of closing costs and the opportunity to make some good money for them with nothing invested.

I know the agent and think of her as a friend so my guard was down. I called my buyer and now it's a storm of problems. All I can say is that UNDER NO CIRCUMSTANCES do you ever relay a verbal offer unless you enjoy turning simple things into problems that involve you calling your lawyer.

Great post! Thank you!

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