To Delay or Not To Delay

As a listing broker, we are now frequently in situations with multiple offers. It can benefit sellers if they have more than one offer to consider delaying, but there are also situations where it may not be wise.  Here are some tips to help you make a smart decision.

Situations where you should not delay the presentation of offers:
•    Your first offer is strong, the financing looks good and there may be appraisal issues at a higher price.
•    You did not have a letter on file and it was not noted in the agent remarks per MLS Rule 11.
•    Some buyers will be offended and not wish to compete with other offers.
•    It can be confusing to brokers who don’t know how to handle the situation.
•    Some buyers cannot wait for days to hear whether or not their offer is accepted.

Reasons you should delay the presentation of offers:
•    You expect multiple offers.
•    You can use multiple offers to negotiate a higher price and/or better terms for your seller.
•    Your seller may get a cash offer so the appraisal won’t be an issue.

Here’s what you should do to help decide if you should delay or not delay the presentation of offers:
•    Research market times in the price range and area adjacent to your listing to determine if you can expect multiple offers.
•    Use NWMLS Form 7D to disclose the presentation of offers to the seller is delayed until a specific date.
•    Disclose in the Broker-Only remarks that the presentation of offers will be delayed.  This needs to be done at the time of the listing and not later, per NWMLS Rule 11.
•    Be reasonable in the length of time offers will be delayed.  Too long will discourage activity.

Discuss this with your seller and follow the procedures exactly as you have published.  If you do, no one will be offended unnecessarily and your seller may be the recipient of a higher net proceeds! - Debra Snoey