Special offer

Two Unique Offers

By
Real Estate Agent with Innovative Realty Solutions Group BK3158345

I got two offers on a listing.  Both were unusual.  The property is unusual.  Without going into lots of detail, one offer was low, low escrow, 21 day inspection period, contingent on the sale of an unlisted property with a 7/20 closing, appraisal contingency and sale of home contingency for a mid June closing.  The other was not as low, low escrow, 60 day inspection period (realtor is buying and wife is an attorney), contingent of the sale of an unlisted house with a September closing, sale of home contingency for Mid August. 

Neither offer was sent with a preapproval.  I requested them and got them.

 

How would you advise your seller?

 

 

Comments (45)

Rose O'Reilly Sievers,CRS,SRES
Carlsbad, CA

These offers are looking for a deal, doesn't sound serious in todays market. When another offer comes in, it is good to state that you had 2 offers but they didn't fly.  The new buyers will know that there was an interest in this home.

May 08, 2015 04:48 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Depending on your market, it sounds like both offers are weak.  In Dallas, it's likely that a seller would reject both offers.  Keep us posted on this one!

May 08, 2015 06:20 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

I'd take this post down as all terms of offers are confidential and if the property is so unusual, one of those buyer brokers might see what they are up against.

May 08, 2015 06:49 AM
Tammy Adams ~ Realtor / Podcaster
Maricopa Real Estate Co - Maricopa, AZ
A Maricopa Agent who Works, Lives & Loves Maricopa

At lease counter both with your clients needs met and see what happens. Worse case one changes their terms since they want it

May 08, 2015 07:41 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I agree with Lenn, counter it, you never know.  Some people just have to try!

May 08, 2015 08:02 AM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

What with these contingencies about selling their house that is not even on the market? 

Contingencies like that would never fly here...thank goodness.  Sell the house and then look!!

Eve

May 08, 2015 08:35 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Seriously, those aren't serious offers IMO. Some would advise to counter with list price and standard terms and conditions, yet, I would simply say next.

May 08, 2015 11:10 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Seriously, those aren't serious offers IMO. Some would advise to counter with list price and standard terms and conditions, yet, I would simply say next.

May 08, 2015 11:10 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

What I'd like to know is what makes the property so unusual? 

May 08, 2015 03:21 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Dee Toohey - well, it's multiple offers - so let each buyers know to give their best and final - with pre-approval letter for their offers to be considered.

May 08, 2015 03:49 PM
Dee Toohey
Innovative Realty Solutions Group - Longwood, FL
Broker, ABR, AHWD, CIPS, FMS, ePro

Thank you all for your comments. 

The seller rejected both offers.  Immediately, both buyers wanted to submit another offer.  One wants to wait until their home is listed and under contract, the other did submit a higher offer with less contingencies.  I will be sending to the seller today.

Thank you for your comments and suggestions. 

Happy Mother's day to those of your that are Moms, Step Moms and Dads who play the role of Mom and Dad! 

 

May 09, 2015 12:34 AM
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

Unless your "unusual" property is more or sell unsaleable to a normal buyer in your opinion, move on.

May 09, 2015 01:34 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck with the offer. Happy Mother's day. Have a great weekend.

May 09, 2015 11:48 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I wouldn't entertain either one.  They are both contingent offers, not enough $ to hold their feet to the fire, and would tie up the property while they tried to sell.  Next!  Happy Mother's Day!

May 10, 2015 11:26 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

These buyers do not seem very serious.  Give your Seller your best advice and let them make the decision..

May 10, 2015 11:58 AM
Rita Harris
W.P. & Assoc. - Seattle, WA
Specialty: Immigrant families & vintage homes

I would go with the agent and atty wife, assuming SHE has stable income.

That said, in my opinion (and this is not legal advice, so go ask your managing broker) I would suggest a counter that includes:

  -  Pre-inspection (PRIOR to making the offer - that way they know if they are going to ask for structural remedies that would cost your seller additional $) that needs to be concluded w/in 10 days, not 60.
  -  They get 45 days to secure an offer on their house that is NON-contingent and must close by "x" date.  YOU guys get to see a copy of that offer to make sure it's not squirrely too, and, you get to see a prequalification certificate as well from that buyer's lender.
  -  They need to have not a simultaneous, but a shortly thereafter sort of closing, so that everyone has money and can move in a timely manner.
  -  Oh, btw, there is going to be a "bump clause" which allows your seller to accept an offer from a non-contingent buyer if the agent & atty haven't sold their house yet.  It will give them 3-5 days (usually over a weekend) to unload their place, otherwise, the non-contingent buyer gets the house and the others can whistle.
  -  They must be preapproved, not prequalified by a lender.  Here in my area, it is not uncommon to request bank statements proving they have sufficient funds to close upon the sale of their property.  Just sayin'. 
  -  Don't understand the term "low, low escrow."  Here, escrow is a neutral entity who accepts money from the buyers and pays the seller/lender.  Are you suggesting they came in with a low initial offer?  If these buyers want to make a contingent offer, they need to step up with more down payment and/or sales price.  A seller can accept less (be more motivated, let's say) if it's an all cash or non-contingent offer that closes in 30-45 days.  Contingencies tend to make a property shop-worn and not all people are willing to attempt to bump someone.

Lemme know if you'd like to see the form we use which outlines a contingency and how to bump the first position if they haven't sold.

VERY best of luck to you and your sellers!  Hope you get a viable purchase this time.  Wouldn't it be funny if the other couple bumped the atty?  (chuckling)

All the best from the Pacific Northwest.

Rita Harris, Broker (Seattle)
WP & Associates

May 10, 2015 02:57 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I would counter with shorter contingency times on inspections and loans.  The other thing I would do is getting information on the Listings to see if they are priced right and will sell.  As I understand it you could leave it on the market and if you get an offer they have to remove the contingency or drop out.  Depends on how the contingency is worded. 

May 11, 2015 07:17 AM
Dale Taylor
Re/Max 10 New Lenox Illinois http://dtaylor.remax.com - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

First, I inform the Sellers I have the offers, share the details, and recommend they allow me to request pre-approvals before they an expect a formal response from the Seller.

May 12, 2015 06:30 AM
Dee Toohey
Innovative Realty Solutions Group - Longwood, FL
Broker, ABR, AHWD, CIPS, FMS, ePro

I haven't been here much lately as inbetween then and now, my mom passes away after a very challenging year.  She had a stroke, broke her hip, had a hip replacement, rehab was successful but she came home and collasped two days later. After many other tests, she was diagnosed with emphasema and lung cancer.  She passed away not so peacefully nearly 35 years to the day from my Dad's death.  Life has been a big crazy this year but I am back in full force.

The property discussed is pending and past inspections and appraisal. We area awaiting closing.  It was a solid offer, the first of about 14 somewhat unusual offers.  Two of those making earlier offers complained that I failed to notify them to  them of the new offer.  Oh well.  The seller is happy.  The buyers are happy.  Life is good. 

Jul 11, 2015 05:44 AM
Rita Harris
W.P. & Assoc. - Seattle, WA
Specialty: Immigrant families & vintage homes

Oh Dee.... I am SO sorry to hear of your Mama's passing.  I'm sure it was a struggle not only for her and her spirit, but on the rest of you during the whole process.  I think this is why those of you who do have children are fortunate.  It is with hope that "someone" will at least pay attention and help when the time comes.

As to the deal - In my area, we have an escalator addendum that has space to calculate how much better the other deal is.

I too, have been an agent presenting an offer when no other offers were on the table....yet.  We even used an escalator.  Had a deadline of 9pm.  No word. Agent didn't text me either.  Next day we were told, "Sorry, we accepted another offer."  We couldn't offer a highest and best or remove an inspection clause because we had no idea there was another offer.  Don't know I would show this agent's listings ever again, considering how we were treated.  Maybe.

While the goal is to bring buyer and seller successfully thru the process, I think it's also important to protect one's professional reputation and be nice to fellow agents.  Just an observation.

Jul 12, 2015 03:58 AM