Every seller and their agent should be open to answering questions about a listing. However, when a buyer has expressed that they are really interested in the property, there may come a time when a fine line is drawn between inquiring and negotiating.
Answering potential buyer questions is good business, but when does it become negotiating without an actual offer to present to the seller?
Examples of inquiries might include:
- Is the home on a septic or sewer system (just in case the MLS is clear)?
- Does this home have a heat pump?
- I see the home has an attached garage, but when we visited, we could not find how to access from inside the house. Is there access from inside the house?
- Have there been any issues with water intrusion in the basement garage?
- Is the seller willing to pay closing cost?
Those are all reasonable questions, but the fine line is drawn when the buyer's side tries to negotiate before presenting an offer and before supplying proof of funds.
Examples of Trying to Negotiate Without a Formal Offer:
- Will the seller have the septic tank cleaned prior to inspection?
- If the furnace of heat pump is approaching its average life, will seller replace or give credit for an upgrade?
- It looks like the basement has had water issues, will the seller install a sump pump or otherwise waterproof the basement?
- Buyer's agent says buyer needs help with closing cost and asks if the seller is willing to pay a maximum of 6% of the buyer's closing cost.
Again, these are just examples of real situations where buyers create a fine line between inquiring and negotiating without a formal offer.
Personally, questions are good, and I always invite them. However, I strongly oppose buyers and their agents trying to negotiate items without an offer and proving that the buyers are qualified to buy.
From the seller's perspective, I don't think it is wise to negotiate with a buyer that has not proven their qualifications and refuse to send a formal offer? Even if the seller were willing to respond to these negotiable items prior to receiving a formal offer, chances are once on paper, it may look different than what had been discussed.
And the answer to those informal negotiable items all depends upon the offer in its entirety. Which the seller cannot address if they have not been presented an offer. I have seen too many times when verbal agreements have been made only to have terms written in the offer there were not agreed upon.
Yeah, I get it. The paperwork can be time consuming, especially those so called “timesaving” electronic forms. But if the buyer or his/her agent does not want to put in the time to send an offer, then why should the seller waste time with a buyer whose qualification status is unverified? Yes they can send over the pre-approval letter to show that they are qualified, but while they're at it, they can also send a formal offer.
One can argue that offers do not have to be in writing, but seriously who would oppose ensuring the clarity that a written offer provides? Many would say that I am being too persnickety, but of course I would have to disagree.
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