By Barbara Lehrer
Real Talk
Barbara Lehrer.
The real estate market is still hot in Orange and Milford. The competition is still going strong.
Real estate agents, representing sellers with listings and buyers with offers, know they have an obligation to make clear the process where everyone has a chance to compete for a home purchase in a fair and ethical way. The code of ethics for all agents is specific, with the important idea that the homeowner chooses the contract based on all the facts at hand. The agent simply presents all the information working closely with each buyer agent. Too often, buyers get discouraged and frustrated, as this scenario can play out multiple times for them.
The clients, sellers and buyers, are working hard to complete transactions and they need clear-cut explanations before they begin the process on what is to come. Counseling meetings with a realtor is so important because they can prevent any potential misunderstandings before they occur.
Buyers want the chance to make their best offers, but they can just hope that their information, situation and financing is enough to get the deal on the home they have their eye on. Of course, proper preapprovals and good advice from buyer’s agent can sometimes prevent disappointments. Unfortunately, the supply and demand crunch weighs heavily on the number of listings available to the buyer pool.
The seller gets the blame, of course, as he can only accept one contract. The listing agent presents all the offers, giving a deadline for presentations to all potential buyers. The seller can pick a few ways to continue; he can choose one he likes then, or he can instruct his agent to inform all the buyer agents that there are offers on the table and a new deadline to bring their final and best is now in the works.
Keep in mind that choosing the best contract is a personal decision for a seller. It could include a longer or shorter closing date or a smaller mortgage, for example. It does not mean the highest purchase price necessarily gets the deal.
These multiple offers are hard on everyone. The seller does not want to disappoint anyone and is usually quite grateful that more than one family is ready to buy his home. Unfortunately, someone is always disappointed. It is the responsibility of the listing agent to assure everyone that a chance was given for all, and the seller chose what was best for them.
The pros and cons of negotiating strategies are many. It can include a buyer canceling their good offer because they do not want to compete. In this case, sometimes the seller loses out.
My recommendation is for the seller to get complete explanations from their agent representative on each contract and then make a decision. The seller’s agent also needs a close working relationship with the buyer agent presenting each offer in order to get all the facts. I am always confident at the decision-making point that the complete team of seller and buyer and representatives has done its due diligence, leaving nothing out and paving the way for a successful transaction.
This is a careful and caring process completed with up-to-date knowledge and facts. This is the beginning of a transaction and it paves the way for all the contingencies it generates, such as inspections, attorney reviews, title searches and deadlines The total process must have a strong and trusting basis; it is choosing the right contract for the seller and its matching buyer.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.