Many parts of the country are experiencing a challenging time with foreclosures and short sales. While we do have them here - mostly in the outskirts of the metro area, our market is quite busy but inventory is low. That means we are back to multiple offers. Just last week, I wrote two offers for two separate clients in polar opposite sections of Washington, DC in multiple offer scenarios. Neither of my clients ended up with their property because each had escalated as far as they were willing to go. Here are my comments:
1. Strangely, in one of the transactions, the listing agent told me she was instructed by the seller not to disclose the number of offers on the table. I think that is a poor response and the listing agent should have counseled her client to share this bit of information, which is usual and customary in our market. My client already escalated far beyond the list price and this lack of communication from the seller made him uneasy. It made me uneasy, too.
2. The other transaction, this property's original contract had just fallen through due to financing and the seller was now looking for a new primary contract. My client's offer was all cash and offered less than list and could settle in a matter of days. The seller went with a higher offer price on a financially riskier client. It was certainly strange that my client's offer was not accepted but when I went back in to our system, I saw that the listing agent was also the selling agent - allowed in Washington, DC but I don't practice dual agency.
Also, last week, one of my listings had a offer placed on it. Yay, but the offer was very, very low and included a large seller subsidy. With an offer in our market, it is usual and customary for the buyers to provide a financial information sheet. This agent did not provide it. I asked it of her and she told me that her client would not provide it, however, gave me access to the lender. I called the lender and among other things the lender told me, "this buyer is approved but she is stretched to the limit and really needs the seller subsidy". She had virtually no savings and could hardly afford the monthly mortgage at the offer price. I told the selling agent that my client was not going to respond to the offer, which upset her and would usually make me mad if I received that kind of response from a seller. But when I explained to her the lender's response, she understood and took her offer off the table. That entire exercise was a waste of time.
But the good news is....this is a new week with new possibilities, new listings coming on the market every day and new buyers on the search!