IS AN OFFER DEADLINE SIMPLY A SUGGESTION OR IS IT FOR REAL?

By
Real Estate Agent with The Medford Real Estate Team DRE#01223788

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.

So…

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.dfgh

 

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.

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Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I agree wholeheartedly, John! I do see some agents who will list the property, get a better-than-list Offer and two days later, the LA is having an open house and the house doesn't go to the first-day buyer. You find 30 days later in MLS that the agent double-ended it and the price was lower than the other buyer and there were also concessions made. 

You're so right - what is fair to all involved is how it should be handled, still getting the buyer the best overall 'deal' possible.

May 29, 2018 06:52 PM #1
Ambassador
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Robert Vegas Bob Swetz
Las Vegas, NV

Hello John and I would have to say it's real.

Hope you had a wonderful Memorial Day 2018 and ...

 

I wrote a new post about reaching out to ActiveRain members that are following me at the AR network, your name showed up #137 on my list ;o)

 

May 30, 2018 07:49 AM #2
Rainmaker
1,709,787
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

In our MLS we stick pretty tight to the proposed closing date. If there is a delay and it's not the buyers fault we stick with. I'm not aware of any agents who use the closing date as an excuse to switch horses to a richer offer but I'm sure it has happened.

Jun 07, 2018 06:27 PM #3
Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Great post John Juarez - Rather than repeat, I echo to a tee what Debe Maxwell, CRS has already written. We have since then revised contract forms to make it fair and ethical. But as you know, creative agents (right or wrong) will always find new tricks up their sleeve. I think being unconscionable is like an infectious disease. And I hate to hear, "I'm just doing what my Seller told me to do." If you believe that, you'll believe I built a castle onto a swamp. 

Jun 07, 2018 08:17 PM #4
Rainmaker
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Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

In our area we don't have that often multiple offers. 

And to get an extension for the closing date is always a war and fear to lose initial deposit. 

 

Jun 10, 2018 10:20 AM #5
Rainer
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Fred Dorsey
Coldwell Banker Residential Brokerage - Rockville, MD
Montgomery County Probate Expert

great article and thanks for Follow

Jul 04, 2018 11:37 PM #6
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Just popping by to say hello and I hope you're having a great start to 2019, John!

Feb 24, 2019 07:04 PM #7
Rainmaker
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Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

John, I agree offer due date can be very unpleasant for Buyers if they respect the Seller's request and find out that they changed their mind. Thanks for writing on the subject.

Mar 10, 2019 08:35 AM #8
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

John Juarez So interesting to see another state's contract form. Yours is quite concise. Ours takes 40 to 50 pages as each one of your points is another addenda.

We do not have multiple offers that often and we rarely put in a time limit for offers or for responses.

Apr 29, 2019 06:58 PM #9
Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

With multiple offers it's good to play nice and give each buyer a fair shake, or at least disclose to them all that it's a race to the finish line.

May 23, 2019 09:50 PM #10
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Me again! A year later we are still having multiple Offers on most homes under $300K - but, fewer than last year this time. While we still have them, fewer agents are submitting Offers with deadlines - most sellers don't pay a bit of attention to the deadlines! SO frustrating!

May 25, 2019 06:58 AM #11
Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

John Juarez - It was great to receive a comment from you today!

I hope to see and hear from you more!

Jun 03, 2019 09:47 PM #12
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Popping in again, John! Hope all is well and you're having a fabulous summer!

Jul 07, 2019 09:03 PM #13
Rainmaker
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Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Absolutely agree you can't ride the fence.  Pick one or the other for sure.  Great blog....thanks for sharing!

Jul 08, 2019 07:09 AM #14
Rainmaker
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Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Agreed - if you give a deadline, you have to, at the very least, accept offers up to the deadline.

Jul 15, 2019 06:43 AM #15
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s funny that I’ve heard mixed feelings about this but you nail it down so we’ll here.

Jan 01, 2020 10:30 PM #38
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Wayne and Jean Marie Zuhl I do feel like there are a lot of folks out there who don’t actually respect deadlines all that much unfortunately, but right is right. :)

Jan 01, 2020 10:32 PM #39
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