I had two offers come in on one of my Destin Florida listings this week.  One was received a day later than the first. Due to logistics, I presented both at the same time to my seller.  The first offer was significantly higher.  The second offer was ten percent lower than list price, and had no financing contingency.   I advised the seller of her options: ask for “highest and best” from both parties, counter one, reject both or accept one. The seller chose to accept the higher offer.

During negotiations, there were misconceptions from both agents about presenting and accepting offers.

1.  The “losing” agent said: “You should have told me there was another offer.  How unprofessional.” He believed the common fallacy that the listing agent must inform the buyer’s agent that there is another offer.  But should I have? Only with my seller’s permission.  Why? Check out Realtor Code of Ethics Standard of Practice 1-15: ‘REALTORS^®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property.’

2.   “My offer was first!”, the “winning” agent told me.  He implied his buyer got extra credit and was entitled to the sale because he sent his offer first.  Hmmm? Really?  In truth, sellers don’t have an obligation to negotiate with or accept offers in the order they were presented.  

The bottom line is – the seller calls the shots when negotiating real estate offers.  They can choose to respond, or not respond.  They can decide how much and with whom.  They can tell their agent to disclose the existence of another offer, and even the amount if they want.  Or not.  And the listing agent’s job?  Follow their seller’s their instructions.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883

Email Wendy: itswendy@rulnickrealty.com

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

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The post If Your Offer is Presented First – Do You Get Brownie Points? first appeared on Rulnick Realty.

I don’t enjoy multiple offer situations, do you?  As a listing agent in Destin Florida, I occasionally run into these scenarios. Did you know you don’t automatically have permission to relay the existence of another offer unless your seller says you can?

Mouthful?

Check • Standard of Practice 1-15

REALTORS®, in response to inquiries from buyers or cooperating

brokers shall, with the sellers’ approval, disclose the existence of

offers on the property.

Anyway,  I did have permission from my seller to disclose that I had another offer on his Destin property.  Since I had two offers, I advised my seller:

1.       Accept one

2.       Counter one

3.       Counter each (reserving the right to accept whichever he chose)

4.       Ask for “highest and best”

5.       Reject both

My seller decided to counter Offer #2, which was much higher.  I sent the counter offer to Agent #2 and informed Agent #1.  Agent #2’s buyer rejected the counter offer, and countered back. 

Meanwhile , Agent #1 said her buyer was still interested. 

Who was I to prevent her buyer from submitting another offer?  Why should her buyer give up just because he was rejected? Yes, while Buyer #2 was still negotiating with my seller, Buyer #1 snuck right in and submitted a FAR better offer to my seller!  My seller took it.  Agent #2 was not happy.

Was this right?  Of course.  Just because a seller decides to counter another offer in a multiple offer situation, does not mean your buyer has to cease and desist! 

Agent #1 WON because she was persistent.  She knew her customer really loved the home.  She called me twice  a day.  Then WHAMMO!  She won – and her buyer won.  So don’t give up!  If it’s the home your buyer loves, don’t let rejection get you down.  You don’t need permission to submit another offer. Stay in the fight, and come home with a win! 

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call 850-259-0422

Email Wendy: itswendy@rulnickrealty.com

The post Multiple Offers and The Seller Said “NO”! So?! first appeared on Rulnick Realty.