Sellers: I Must Present All Offers. Even When You are Sale Pending

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Real Estate Agent with Cedar Rapids/Iowa City, IA KW Legacy Group S44645
https://activerain.com/droplet/4b6K

Sellers:  I Must Present All Offers.  Even When You are Sale Pending

I am speaking about the state of Iowa here.  All offers must be written, so no verbal offers or contracts because they are not enforceable.  No matter how ridiculous the offer may be, I may know with every part of me that you will reject it, but I still must present it to you.  

Why?  Because I cannot filter what you see.  You must have the opportunity to make those decisions for yourself.  If I don't present an offer to you because I think that it isn't worth your time, there will be no rejection to send back to the buyers showing that you saw their offer.  

Think about that.  If a buyer writes many lowball offers, just to see if any of them stick, and agents refused to present them, the buyer could have a case....in Iowa.

Yes, as ridiculous as it sounds, even if you accepted an offer weeks ago and the buyer has already released all the inspections and the appraisal, I must present an offer to you.  You cannot accept it as anything other than a back up offer, but you can reject it and let the buyer see that you were the one that made that decision in writing.

This rule has only bitten me once.  I had a new listing on the market and after about a week on the market, I had a cash offer.  Not full price, but really good with no inspections or appraisal contingency.  Problem was that the time frame for response was just a few hours.  It was a now or never offer for the seller.  There had been another agent that had expressed to me that her buyer was very interested and would be writing an offer as well.  So I tried my best to get that offer in the time frame as well.  No response from the other agent.  So of course the seller decided to accept the cash offer from the only buyer that gave us an offer.  The seller was happy until 3 days later.  

danger sign

The second buyer decided that they wanted to write a back up offer.  Here is the problem, it wasn't cash, but it was full price with the normal contingencies, inspections, appraisal, etc.  The seller was infuriated.  They screamed at me and wanted my head on a stake.  They called my broker and wanted out of the first offer.  But there were no contingencies for the first buyer and there was no way out of the first offer.  Plus the first buyer really did want the house.  That is why they didn't ask for inspections or an appraisal.

The rest of the escrow period was a nightmare.  Prior to listing their home, they had offered on their new home....with me.  So I could not stay away when I was selling them a new home and selling their old one.  They were so unpleasant to me, that I was not present for either of the closings.

But ultimately, at the end of the day, it was their decision to accept the first offer and they knew it.  Because it WAS the ONLY offer at the time!  I didn't have a crystal ball and it was just easier to blame me.  They saw me repeatedly call the second agent.  They heard me call the first agent and beg for more time to respond.  But the first buyer wanted an answer right away, time was not on the seller's side.

Presenting all offers up to the day of closing seems like a silly thing, but sometimes it makes sense to sellers to accept back up offers.  They can use them as leverage to get the first buyer to stay on track.  But when it back fires, it is usually not pretty!  Like in my example.

Funny story....the new home that those sellers bought like 6 years ago from me, has been on sale with three different agents and companies over the last year.  I showed it to a buyer once last year.  I knew too much about the house and my buyer knew the owners and didn't like them.  I was so relieved that I didn't have to deal with them again...now that would have been ugly.

Keep smiling!

Karen

 

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Karen Feltman, REALTOR®, ABR, AHS, CHMS,                                                                      CNE,CRS, e-Pro, green, GRI, SRES, TRC

Keller Williams Legacy Group

4850 Armar Drive SE Ste B

Cedar Rapids, Iowa 52403

Email: karenfeltman@gmail.com

Mobile  319-521-0701

www.KarenFeltman.com

Licensed in the State of Iowa

© 2010-2018 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist 

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Iowa Linn County Cedar Rapids
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Karen, it is unfortunate when sellers (or buyers for that matter) act that way.  I agree, we cannot make decisions for the sellers, they have to make them and live with the consequences.  Backup offers are good to have though, I've had a few deals fall through over the years and been able to continue seamlessly with a backup offer. You had some ungracious sellers in your case.

Jan 26, 2014 09:56 AM #1
Rainmaker
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Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Silvia!  You are right that this was an extreme case.  I did not pressure them in any way to accept the offer in hand.  I let them make the decision.  Ulitimately, they knew that I tried everything to either get more time from the first buyer or to reach the agent of the second buyer.  It was truly an unfortunate situation.  Thank you for reading.

Jan 26, 2014 11:04 AM #2
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Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Amazing how you don't seem to be able to get out of the way of these folks!!      But, you did what you had to do....

Jan 26, 2014 12:55 PM #3
Rainmaker
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Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Dagny!  For every nut job, there are at least 50 clients that are perfect gems.  But no one really wants to read about those.   :)

Jan 26, 2014 12:57 PM #4
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Karen, there's no reason for people to act that way. You did your job and you did it the way you were supposed to do it.

Jan 27, 2014 04:43 AM #5
Rainmaker
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Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Connie!  I can understand the seller's frustration.  The second buyer's agent dropped the ball and I was the one that got the brunt of it.  The second buyer had no way of knowing that the first offer had no contingencies.  There was no point in making an offer when they could not even be in a backup position.  It just proved to poison the sellers against me.  I am sure that the second buyers had no idea that they had missed their chance to be considered by the seller.  Unfortunate.

Jan 27, 2014 04:48 AM #6
Rainmaker
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ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

Hi Karen.  I love reading your stories "A Day in the Life of an Agent".  Your writing style holds my attention throughout the entire article.  It's too bad that things went down the way that they did. The seller took the "bird in hand" but the "two in the bush" could have been a worse option.  You should not have been held responsible.

Jan 28, 2014 12:02 AM #7
Rainmaker
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Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

Hi Eric! Thank you for reading.  I think that most of the time, the second offer that comes later is not better than the one already accepted.  You just never know.  The second offer could have never materialized and the first offer was cash.  They made a decision and tried to blame me.  It happens.

Jan 28, 2014 12:08 AM #8
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Karen Feltman

Relocation Specialist in Cedar Rapids, Iowa
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