During Multiple Offers Scenarios Are Seller’s Agents Demanding Too Much From Buyers?
Any buyer who has been actively looking for a home in Silicon Valley knows that multiple offers are the norm. Properties are selling quickly, many via all cash and many without the benefit of any buyer contingencies. The offer process can vary from brokerage to brokerage and agent to agent.
Some listing agents prefer that offers are e-mailed to the agent with any supporting documentation. Some agents will meet with the buyer’s agent and review the offer in person. For the most part, gone are the days when the buyer’s agent meet with the seller and listing agent to review the offer.
Good listing agents advise buyer’s agents on when, where and how offers are to be presented. The listing agent may also indicate a preference of contract, terms and forms of verification. Good buyer’s agents need this information so they can tailor their client’s offer to meet the needs of the seller.
Unfortunately, we are seeing some overly enthusiastic listing agents attempting to dictate the terms of the buyer’s offer. The following is an agent’s instructions to the brokerage community regarding offers. Note: the information came directly from our local Multiple Listing Service
“Dear agents please note the followings: 1- no offers under asking price. 2- As – Is only. 3- No appraisal contingency. Proof of funds, pre approval and all. Thanks.”
Most of the terms are “given” if one has been through a multiple offer scenario before. Providing the listing agent with a pre-approval letter and verification of the buyers funds are standards in any offer scenario regardless of market conditions. Purchasing the property in its “As-Is” condition is also a typical. Asking the buyer to waive the appraisal contingency is becoming more prevalent because the competition for properties dictates it. However, requiring the buyer to bring offers that are only at or above the list price is rarely seen.
As licensed real estate practitioners, we are required to present any and all written offers for our clients. That means presenting offers below, at, or above asking price.
An interesting side note on this property, it has been on the market for over 60 days. The average days on the market for this type of property to sell has been 40 days. Is it possible that the listing agent’s remarks may have pushed buyers away from making an offer rather than towards making an offer?
Either way, I think it is bad form for agents, in any way, to limit/restrict a buyer from presenting a written offer. What do you think?
