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Verbal Negotiations - I don't like them, but I did one, Now I'm frustrated.

By
Real Estate Agent with Keller Williams Keystone Realty RS294813

I'm sure most of the agents here have, at some point, made a verbal offer or counter-offer.  I my experience it never seems to work out the way we plan.  I don't want to say that we use the verbal offer because of laziness, but in some instances it can save some time.  The amount of time saved never seems to equate the frustration that inevitably follows. 

Last Tuesday my client and I made a verbal offer on a property.  We had written an offer the week before, which was countered, but due to the financing at that time wouldn't work.  My client and I did some homework talking to a few lenders including AR's Jason Sardi.  We decided that an FHA 203k loan would be a viable option and was something we were going to pursue if we could negotiate the RIGHT price.  We were getting pretty close to our preapproved maximum (once repairs were added to the sale price) My client is also a first time buyer, so the sledding is getting tough.  We have a loan product that typically takes 60 days to close, we have roughly (at the time) 50 or so days to close to get the current 8000.00 tax credit. 

Our first verbal was countered at a price that we found agreeable.  The other Agent said write it up.  Friday night I met my client at one of my favorite spots in Gettysburg, The Blue Parrot Bistro.  I had the paperwork prepared and he signed.  We had a semi-celebratory beer.  I emailed the offer out in the morning, with a contract accepted date of the following day.  It's now Wednesday and we still don't have a signed contract.  They are waffling over our inspections.  At this point the contract is Null and Void.  My client still wants the place but we still don't have a contract. 

So to recap.  The verbal offer was agreed upon.  We put it on paper, it didn't get signed.  We are losing precious time to receive the tax credit, and the agent can't seem to make contact with the seller. 

Verbal Offers Forgot about them.  It is not worth the time.  Our effort to keep the ball rolling quickly probably lost us 3-4 days.  Everyone is ready to get cranking on this deal, but we don't have a contract.

Frustrated.  I have more stories of verbal offers, but we'll save that for another day. 

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David E. Monsour, Realtor

Keller Williams Keystone Realty, Gettysburg, PA 17325

717-319-3408

David.Monsour@Gmail.com

Comments (11)

Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I have done this in the past as well.  Some have worked out, some have been changed by the other agents.  Good luck to you on this deal!

Oct 14, 2009 07:19 AM
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

Remember the old saying "a person is only as good as his word"?  Sort of sums up the other agent and/or his client doesn't it.  One more story for your Memoirs as a Realtor book.  Good luck with the deal!

Oct 14, 2009 07:20 AM
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

Oh that really stinks!  We all know verbals do not mean a thing and here is a good example of why.  I do hope it works out for you.  Keep calling...

Oct 14, 2009 07:21 AM
Edward Bachman
EXIT REALTY SOLUTIONS - Kingwood, TX
Your Kingwood TX Realtor

I do and will continue to use a verbal when convenient....which it usually is not.  If the offer is so ridiculously low, I will use a verbal to save the effort of what is normally a sure refusal.  If it appears we are in the ballpark....I start writing immediately.  If we are close right off the bat....no need for a verbal...just start writing.

Oct 14, 2009 07:24 AM
Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

David - The last line ingriqued me:

Frustrated.  I have more stories of verbal offers, but we'll save that for another day. 

 

What don't you get !! Don't worry , just give the lender a heads up , he can get some prelim work done

Oct 14, 2009 07:24 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

I'm not blaming the agent.  The people seem to want to do this, but I can't do anything without a contract.  We even said just change the inspections.  Make it "as is" we don't care that much we just need a contract.  The tax credit is worth more than any repairs to this particular buyer.  His dad owns a construction company so we have that side of things covered.

Oct 14, 2009 07:26 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

Edward - That is basically why we used one, because we knew we were low. 

Laura - The meat and potatoes of the other story didn't involve me as much as another agent I was working with.  We wrote an offer they countered with a verbal, we accepted and were waiting on the papers to come back to sign.  In the meantime the seller allowed two more showings before returning the paperwork.  The other agent told her that she shouldn't do that, but it happened.  I happen to be very good friends with this FANTASTIC other agent.  It all ended up working out, but we were stressed for a few hours.

Oct 14, 2009 07:32 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

David - It's ironic that you write this.  The wife of a co-worker of mine just got her license and her first "deal" fell through.  The verbal offer was accepted, however they ended up taking another offer unknown to her.  She was irritated and I just sent along the message, "Welcome to the Real Estate Biz, kid."

Oct 14, 2009 08:10 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

Jason - Starting off in Real Estate can be a real bear.  I'm relatively sure this will be fine, but it doesn't vanquish my aggravation.

 

I think your message is well suited.

Oct 14, 2009 08:15 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

UPDATE:  We are under contract.  I'll make another blog about what the owner added to the contract.  Unreal. 

Oct 15, 2009 10:00 AM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Great Dave,

Glad you worked it out!  I knew you could do it! 

Oct 17, 2009 03:57 PM