Chino Hills Realtor® FAQ: "What If I Find Something Better?"
It's not surprising when buyers want to keep their options open: with many homes available, it's tough to make a choice. So as a Chino Hills Realtor®, I'm often asked the question: "If we make an offer and THEN find something better... we can just withdraw the offer. Right?"
Not exactly. In fact, with very few exceptions, if I submit an offer for you, we won't even be LOOKING for "something better" -- not unless the current negotiation fails.
I know there are agents who disagree with me, who have no problem writing several offers for the same client at the same time. But for me it's over the line, and here's why:
#1. Your "offer" is a CONTRACT to purchase; if the seller accepts, you're legally bound to the terms. There are clauses that allow you to cancel, but they refer to your loan and items concerning the property. THERE IS NO "I FOUND SOMETHING BETTER" CONTINGENCY.
#2: Agency. The first document you'll sign with me is the Disclosure Regarding Real Estate Agency Relationship. It outlines the duties each agent has to BOTH parties in the transaction. They include: "To the Buyer and the Seller: ... b) A duty of honest and fair dealing and good faith." The seller will make huge decisions based on your stated intent to purchase; by submitting offers I know you're not serious about, I'm not operating honestly, fairly, and in good faith.
#3. Initial Deposit. Sellers want you to have some "skin in the game"; that means when you write an offer, you'll give me a check for 2-3% of the offering price. This is called an "earnest money deposit", and by submitting the offer, I'm stating the deposit for this property is in my possession. If you're still looking around, planning on juggling the same deposit check for multiple properties, how can I truthfully say that? And exactly how "earnest" are you?
So if a house has everything you need and most of what you want, and you've looked around enough to make an informed decision, AND you still want to keep playing the field... well, the bottom line is this: if you can't commit to a house, you may not be ready to buy.
Copyright © 2011 Diane Mora Chino Hills Realtor®
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