If Your Offer is Presented First – Do You Get Brownie Points?

Wendy Rulnick — Mon, 16 May 2011 22:24:47 +0000

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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Are You Giving Away Your Client’s Position?

Wendy Rulnick — Fri, 10 Dec 2010 17:50:14 +0000

When you are representing a buyer in a real estate sale, do you remember who your client is?

I recently had an agent call to let me know he was sending me an offer on one of my listings. We chatted a bit, and I mentioned how much I liked the property. He said, “So does my buyer. In fact, when she walked in she said ‘I HAVE to have this home!‘” Bingo. I knew I was going to sell it. Now I was armed with confidential information – the buyer’s motivation.

The offer came an hour later. It was 15% lower than list price. The Destin Florida home was a short sale, and I knew that price probably would not work with the lender. The seller thought it was low, too, but was afraid to counter and risk losing the buyer. I told him not to worry, because the buyer’s agent had given away his client’s position! He “HAD to have that home”!

We counter-offered at a higher price, and the buyer accepted.

This is just one example. Today, I had another low offer on one of my listings. The buyer’s agent presented it and stated “the buyer will come up”. I thought, “Thank you for letting me know! I will inform the seller.” Maybe you think giving away your buyer’s position may help them. But can you speak for your client without his permission?

The Realtor Code of Ethics states:

“When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.”

What should the real estate agent do when presenting an offer? Be pleasant and business-like, and keep MUM about your buyer’s motivation.