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** Submit your final/BEST offer. Why do you have a problem with that?

By
Real Estate Agent with Century 21

I was representing the seller on a transaction recently. I've gotten together with the seller and since we had multiple offers on the property, I suggested to the seller to send a multiple counter offer to the offers indicating that the buyer to submit their final and best offer. Based on what we receive back, we will make a decision. I've done this in the past and never had a complaint from an agent.

Well, an agent representing one of the buyers called me yesterday to say that it was ILLEGAL to send such a counter. I almost wanted to tell him if he even had a real estate license. What does he mean by it being illegal? I don't see anything wrong with it and it is a fair way to give each buyer a chance at submitting their last counter offer. Wouldn't you agree? He said he found it distressing because he does not have a specific number to work with to run it by his buyer. I explain to him that is why we have a CMA. It was priced below market and he should not be surprised that there are multiple counters.

Has anyone sent a counter offer in the way how I have done it?

Well, that's the life of a listing agent on the 4th of July. So Mr. Agent, please submit your final/BEST offer.

 

 

 

Show All Comments Sort:
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTORĀ®- myrtlebeachhomesblog.com

I have said that before Jim...I see no harm in it!

Jul 04, 2008 07:04 PM
Carolyn Gjerde-Tu-Davis
Lyon Real Estate - Davis, CA
Ca Real Estate

That is how all the REO/foreclosed homes are doing it with multiple offers.  They are saying write your highest and best offer up front because they are often not countering all the offers and chosing to go with the strongest offer from the start.  What you and your seller did seems reasonable to me.

Jul 04, 2008 07:27 PM
Aaron Barnes
Barnes Real Estate Brokerage - Destin, FL

yep... A wonderfull way to handle the transaction.  More than fair

Jul 04, 2008 08:51 PM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

I agree with you 100%.  Good Job!

Jul 04, 2008 10:17 PM
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

I have sent final offers before, and then had a subsequent offer refused. It was a bsnk REO.

Jul 04, 2008 10:50 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I think this approach is ok on multiple offers. Its a fair way of showing your cards. If the buyers are serious and want the home they will counter.

Jul 04, 2008 11:21 PM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

That is exactly what a bank will do with a foreclosure in a multiple offer situation.

Don R.

Jul 05, 2008 12:01 AM
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

I see no foul in doing that. 

Jul 05, 2008 01:47 AM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

I have done "highest and best" many times in the past, especially when the market was stronger.  It allows all the buyers the opportunity to make changes in their offer, not only price, but the terms.  What can be fairer than that ?  Instead of just closing one deal without giving someone the OPPORTUNITY to modify their offer... how can one complain ?  You did the right thing in my opinion !  That agent was probably just upset his deal did not get accepted (that is what Im assuming : )   )

Jul 05, 2008 03:44 AM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

It's a toss up for me. Is someone's "highest and best" truly that. if that's what the seller wants the buyer does have an option of moving forward or saying to heck with it.

Jul 05, 2008 04:14 AM
LaNita Cates
REMAX of Joliet - Joliet, IL

It is hard to hear "highest and best" after writing an offer and thinking there are no offers. When you get that call "other offers so now we need your highest and best". My buyer always thinks the agent is lying and it's just a crappy situation:)

Jul 05, 2008 06:32 AM
Jim Quinn
Century 21 - Anaheim, CA
North Orange County Real Estate

Jeremy, thanks for the support!

Carolyn, many times the buyers and the buyer's agents complain about this and I don't see why it should be a problem. They said it is a wrong way to send a counter.

Barnes RE, thanks for the comment.

Norman, thanks!

Kevin, I know what you mean.

Laura, sometimes buyers do get turned off by this though. I cannot understand their objection to this type of counter.

Don, I've been on the receiving end of those REO counters myself.

Tim, thanks for pitching in.

Christopher, thanks for stopping by and commenting. I can never understand those agents that complain about this.

Robert, it is a 2 way street.

LaNita, I can understand your sentiment. I would never send in ‘highest and best" offer if I did not have any offer. That is such blatant lying and I hate agents that do that myself. Let's be truthful because the lies will reveal itself eventually. :)

Jul 08, 2008 06:19 PM
Guy E. Gimenez
The PowerHouse Group - Austin, TX
ABR, CRS, GRI - Broker & Investor (512-731-5613)

When an agent tells me something is illegal our unethical, I simply apologize and then ask them for the exact violation and where it can be found in the state regulations or Code of Conduct.  You will find they don't have a clue.  Then I explain they should contact their broker before making unsubstantiated accusations because eating crow can't be all that filling. 

Jul 08, 2008 06:29 PM
Jim Quinn
Century 21 - Anaheim, CA
North Orange County Real Estate

Guy, that's a good one. Some agents just don't know any better. If they feel uncomfortable about something they refer to as being illegal. Go figure.

Jul 10, 2008 07:37 PM
Suzanne Sands
Pavao Real Estate - Somerset, MA
Somerset MA Real Estate

Hi Jim,

I see nothing wrong with approach. I recently had a similar situation, multiple offers on a short sale listing. The bank wanted the highest net, period. This seemed to be the best way to handle. :)

Jul 12, 2008 01:54 PM
Jim Quinn
Century 21 - Anaheim, CA
North Orange County Real Estate

Suzanne, this one agent insisted that it was not the correct way to send a counter. She went to say that in her 20 years of experience in the industry she has never seen a counter like that before. I found that to be rather odd if what she claim is true as far as her experience is concerned.

Jul 12, 2008 06:12 PM