Maybe the Old Way Was Better.

By
Real Estate Agent with Bill Cherry, Realtor 0124242

 

 

There are some rules of real estate decorum that I wish hadn't washed away. Here's one.

 

For many years, when an agent took an offer on a property, it was all but written in blood and on stone that it was to be expeditiously either accepted or countered or rejected.

 

None of this waiting to see how many offers could be collected, then picking the best one of the bunch, while those who turned in contracts and their agents sat on pins and nettles waiting for the Spoken Word.

 

In exciting markets, it has become the practice among many professionals to not require their clients to promptly accept, counter, or reject contracts, with the hopes of causing a bidding war.

 

I suppose there is a benefit there somewhere, but I've noticed that most of my buying clients who have been subjected to that behavior by listing agents have regarded it as unprofessional and of supreme arrogance.

 

If that's so, it's not how I would want to be remembered.

 

I suspect the old way may have actually been better for all concerned. What do you think?  Do you do your best to collect multpile offers before the first contract is addressed?

 

Bill Cherry
Realtor-Broker

Since 1966

Keller Williams, Dallas Premier

Direct: 214 503-8563

 

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Almost Anything Goes
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Advice for Sellers
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Rainmaker
3,985,587
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I had a client this year where the seller was doing just that...waiting for a bidding war.  We found another home that fit better and pulled our offer in favor fo the 2nd home.

It has been about 5 weeks and that seller still has not sold his home and we came in at 2% below asking.

May 27, 2015 01:36 PM #1
Rainmaker
90,109
Ruth Grainger-Starr
Grainger Realty - Cripple Creek, CO
providing AWESOME real estate adventures

Being raised by a broker I learned the old way of doing things. I would never tell my seller to create a bidding war. It is wrong on so many levels.

May 27, 2015 01:39 PM #2
Rainmaker
393,606
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Both of you are GREAT professionals !

May 27, 2015 01:41 PM #3
Rainmaker
719,234
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Bill, Of course, the old ways are better in many ways. I think that offers should be presented by the selling agent, not given to the listing agent to do with as he(she) wants.

Bill Roberts

May 28, 2015 12:47 AM #4
Rainmaker
2,016,685
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The old way, the same way in small rural markets is you list and sell. No layers of players. No back and forth like attorneys litigating and nothing public facing to complain about our own industry members. List more, sell those listings and the "other agent blues" dries up.

May 29, 2015 09:08 PM #5
Rainmaker
221,036
Richard and Jean Murphy
Harborview Properties - Portland, ME
(207) 712-4796

While we certainly understand the motivation from the selling side, I agree with the above for many reasons. From the buyer's perspective, if a property is offered at $300,000 and the buyer offers $300,000 they should expect a favorable and speedy response (provided the terms are good).

The listing agent claims they are working for the seller and hope to get the best (highest) price possible. We have seen what this "frenzy" creates. Buyers are curious about our business practices AND we have seen how this artifically appreciates the market until a "market correction" ensues.

 

May 29, 2015 09:37 PM #6
Ambassador
2,028,536
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Sellers and their agents need to remember that buyers can withdraw their offer any time before an acceptance by a seller.  The risk is with the seller.

May 30, 2015 03:42 AM #7
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