I was just looking through some AR posts and ran across this one from Karen Crowson from October. http://activerain.com/blogsview/5121560/offers-as-they-come-or-offer-due-date-
I started to write a response, but the response got pretty long and turned itself into a post.
In the crazy San Francisco Bay Area market, multiple offers are the norm. In order to manage multiple offers, an offer due date makes sense. It gives buyers clarity in knowing that they have time to submit their offer…not a first come, first served arrangement. It levels the playing field for buyers, at least to some degree. It is not a race to be first, it is about the quality of the offer. It also protects the seller from accepting what appears to be an attractive early offer and then receiving a better offer which they cannot accept since they are already in contract.
But…you can’t have it both ways. Agents who establish an offer deadline but state that the seller reserves the right to accept a “preemptive” offer are trying to have it both ways. You must commit to one course of action. If there is a possibility that the seller will accept an offer before the deadline, there really is no deadline, is there? I have called out agents who have stated this dual course of action. I believe it is a breach of our mls rules. I also think it is unethical to lead potential buyers to believe that one course of action will be taken when an opposite course of action is a possibility and is sometimes taken and, is even hoped for by the listing agent. I have also heard buyers speak in disappointment and disgust of experiences where they were interested in a property that had an offer deadline and planned to make an offer only to have the listing surprisingly go Pending prior to the offer deadline.
If the market conditions suggest that an offer deadline is the best course of action, we discuss the issue with our sellers to gain their buy-in. If they are in agreement, we state in the comments to agents that there is an offer deadline and preemptive offers will be held and reviewed at the offer deadline date.
Fair to buyers…fair to agents…beneficial to sellers.