Pre-emptive offers. Are they ever good for anyone?

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Real Estate Agent with Alain Pinel BRE 01367196
https://activerain.com/droplet/NXz

Pre-emptive offers. Are they ever good for anyone?

Typically, we would wait until the property is exposed on the MLS before looking at offers. And if it is a very robust seller’s market, we set offer dates.

But lately, we’re seeing listings that were listed and marked pending the same day or “zero” days on market -- which may imply pre-emptive offers. The offers could be from any source --- intra-office agent discussions, buyers and sellers who know each other, etc.

Why would a seller agree to a pre-emptive offer? Some possibilities... bidding war

  • Offer is at, or over list price, with terms the sellers like
  • Sellers have young children, or work at home, and do not like the constant interruption to their daily lives
  • Buyer and Seller already agreed to the transaction, and merely needed a realtor to take care of disclosures and other paperwork
  • Sellers are out of town, or are heirs to the property and want to shorten the selling process
  • Sellers are not predisposed to looking at several offers
  • Listing agent is also the buyer’s agent(dual agency where allowed)....and Sellers agree to a commission structure that favors the Sellers
  • Property is tenant-occupied, and there's no telling how cooperative they will be to showing appointments several times during the listing period


Some say that sellers may miss seeing multiple offers and possible overbidding if they accept an offer too soon.

Buyers may be swept up in the heat of the market and not give the purchase careful thought.

What do you think? Are pre-emptive offers ever good for anyone?

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Rainmaker
3,256,195
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

 This is not  a practice we see here....I am torn between....the first on is often the best one....and market exposure creates competition...maybe it has to be decided on a case by case basis.

 

 

Jan 07, 2013 09:00 PM #1
Rainmaker
710,608
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Sally and David ---

It also depends on the Seller.

When I represent the Buyer, we're very disappointed to see a property that would have been right for us, go on the MLS as already pending.

When I represent the Seller, we're happy to know that a property already has a fabulous offer in no time at all - which also means for both of us no further expenses for staging and photography

 

Jan 08, 2013 02:28 AM #2
Rainmaker
2,791,885
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Pacita,  I feel that if all parties agree then a pre-emptive offer is good for all those that agreed to it.  When it is not good is when the agent is acting unilaterally and the sellers are not fully aware that the agent is secretly double-dipping. 

Jan 08, 2013 04:06 AM #3
Rainmaker
710,608
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Kathleen

Heaven forbid we have agents who misbehave and put their own interests first!

Hope you are having a great start for 2013. Are you busy, busy, busy?

Jan 08, 2013 04:16 AM #4
Ambassador
1,498,736
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I wish our market was this hot but it's not.  We're very warm but it's still rare to see that 0 days on market.  I'm running to keep up these days but I say bring it on in 2013!  Glad to hear from you today.  It's been too long my friend.

Jan 08, 2013 01:26 PM #5
Rainmaker
710,608
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

John

It's a bit hectic around here. It's not as crazy as it was in the height of the market....but at least buyers are getting bolder and even writing offers on short sale. Yeah!

Jan 08, 2013 01:42 PM #6
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Rainmaker
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Pacita Dimacali

Alameda/Contra Costa Counties CA
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