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...
- 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?