Handling Multiple Offers
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Transcript of Handling Multiple Offers
Handling Multiple Offers
Caveats & Assumptions
• All competing offer situations are different
• Recommended guidelines
• This meeting will be from the Listing Agent’s perspective
• In the State of Pennsylvania, all agreements for the sale of real estate MUST be in writing to be enforceable. Never present an oral agreement to your Seller.
Prior to Presentation
• Never discuss terms with Seller on the phone or with an e-mail
• Never discuss terms of competing agreements with Co-op agents
• Inform all Co-op agents when the presentation will take place and how many offers are being presented
• Allow Co-op agents to adjust their offer (in writing) prior to presentation
• Co-op agents may be allowed to present their own offer (with the Seller’s permission) as long as they know the rules
Co-op Presentation Rules
• Inform co-op agent where and when the presentation is to take place
• Inform co-op agent that they will have ____ minutes to make their presentation
• You will be present during the entire presentation
• Co-op agent will be allowed to do the following:- Provide background on buyer- Present the major terms of the agreement- Answer questions
• Following co-op agent presentation, instruct co-op agent to leave the location
If One of the Agreements is Yours
• Inform all Co-op agents that one of the competing agreements is yours
• Instruct all Co-op agents to refrain from discussing the terms of their agreements with you
• Inform all Co-op agents that your Broker/Manager will be making the presentation and all communication should be through them
The Presentation
• Competing agreements should be presented in the order in which they were received
• The Seller has multiple options. Make sure they are aware what they are:
- Accept one agreement and reject all others- Counter all agreements- Counter one or some agreements and reject one or some agreements- Reject all agreements
• Anytime there is a counter, ask the Seller, “Are you OK if we never see this offer again?” Remember – counter offers void all previous offers.
Countering Agreements
• NEVER have your Seller sign an agreement until all the terms are agreed upon
• Counter using one of two methods:- Change terms in writing and initial changes- Convey terms to co-op agent in memo form
• Use this language when communicating back to co-op agent: “My seller will reconsider your agreement with the following terms: _____________”
• Inform all competing co-op agents how many agreements are still in play and when you will be re-presenting offers
Acceptance
• Most co-op agents will want to know why their agreement was not accepted. Never reveal terms of the acceptable agreement. Use the following language:
“My seller decided to accept another offer that they felt had a better price and terms.”
Guaranteed Sales Programs
Sale
What They Say - - -
“If your home doesn’t sell, we’ll buy it!”
Qualifications
Property standards:- Excellent or very good condition- No functional obsolescence- Lower and upper price ranges excluded- Certain areas or locations are excluded- Must be on public sewer (and probably public water)- No short sales or pre-foreclosure properties
Sellers Can Expect . . .
• Application Fee – Another term for an appraisal. Usually about $500.
• Market Ready Costs – Fix up costs. Could be anywhere from $0 to thousands of dollars.
• Carrying Costs – Usually about 6 months. Includes monthly payments on mortgage, utility costs and property management fees.
• Conservative Sales Price Guarantee – Usually about 5-10% below market prices.
Fine Print
• Predetermined Price Reductions – Sellers have no choice
• Sellers must sell and buy through real estate agency
• Sellers must use mortgage, title or other ancillary services
Agents Can Expect . . .
Commissions at risk if property doesn’t sell.
Average SOLD PriceCumberland & Dauphin Counties
2011 vs. 2012 (Year-to-Date)
$199,864 $200,683
$155,889
$138,757
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
Sa
les
Pri
ce
1 2
Avg Sold Price 2011 Avg Sold Price 2012
Cumberland County Dauphin County
2011 2012
+ .4%
- 11.0%