I would not have put that language in the MLS. I would simply have taken offers one at a time and said the owner was reviewing the offer and would get back to the potential buyer with an answer by X date or time. Then, if I DID get multiple offers, I would have gone back to those who were in the ball park and asked for their 'highest and best' offer. I would have repeated that process until I had a winner!
Here in New Jersey we have a 3 day right of attorney review. During those 3 days either party can cancel the contract for no reason and with no repercussions, so it's not really possible to 'swoop in and lock up a property'.
As for alienating potential buyers, well that is just a fact of life in multiple offer situations. Some buyers may be offended and walk away, but if you have multiple offers, what difference does it make? Those who are truly interested in the home and can afford to buy it will stay at the table during the bidding process until someone finally wins the bid and gets their offer accepted.
I wouldn't worry too much about alienating some potential buyers. Until you become a 'disclosed dual agent' they are customers and not clients. Your real duty is to your client and if you remember that, and be diplomatic, you can't go wrong.
Ken, any broker who accuses you of representing only the best interests of your client needs to grow up and act like a professional - or find life elsewhere.
(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
When the market is shifting back to the seller's side of things, many buyers are uncomfortable competing as it's something they're not use to given the long correction we have seemingly exited,
I guess I have been fortunate in never having that strategy backfire and, as such, we try to create that competitive situation when appropriate.
My first alliance is to the seller, not to a buyer who wants to be ahead of the others. The liability is huge trying to work both sides in this market.
In the end we recieved 10 offers.
Also, as for responsibility to the seller, your absolute allegiance to the seller ends the minute you start talking to a buyer that you intend to represent. At that moment (at least in Florida) your absolute allegiance shifts from the seller to the transaction, and "getting it done" outwieghs getting the highest price for the seller.
Best Of Luck.
The seller has already presented the offer.
The buyer need only accept the 'suggested retail price" posted and we've got a deal.
Now that was easy.
Oh, but the buyer wants to NEGOTIATE!
Now, where did fair go?
There is not issue with alienating a buyer who is unwilling to compete. They are not real buyers.
They will submit offers that THEY KNOW are $20,000 light and blame their agent for not making magic happen.
Ken, for the buyer in question, you offer tham an opprtuntiy to enroll in your 'First Look' program that is for serious buyers only. If they are serious, and recognize this opportuntiy, they WILL sign the contract and submit a retainer. Membership has it priveledges. And for these select and decisive buyers, you CAN engagge in specialized programs that can populate your 'First Look' inventory and NETWORK.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
A good trick is to reverse situation and ask the buyer to put himself in the seller's shoes and ask how he would feel. Do unto others sort of thing.
But I'm one of the crazies who DOES go after properties scheduled for auction in hopes of snagging it before it goes on the block. Works one out of 100 times.
I have had a couple of open house visitors like yours, and I have told them - nicely but firmly - that I work for the seller, we have published this procedure to all of the agents in the MLS, and that's the way we're going to handle things. Oh, and I don't write up offers for buyers, either.
Frankly, I think the real estate world would be a better place if we waited a week or so to collect and review offers. My goodness, they advertise the date of auctions, and nobody goes to the courthouse steps early, screaming "I want to get in before everybody else!"
The deadline for reviewing offers was most likely set and or suggested by the listing agent.
The asking price is not cast in stone it is a suggested price, but the market will dictate the value.
His response and your response were wrong.
If he submitted the offer to you, you are obligated to present it, the seller is not obligated to respond to it.
Your response should of been, I will submit your offer to the seller, I'm not sure the seller will respond as he wanted to review all offers after the open house.
That said, it could of been an offer that was all cash at or above asking price, no inspections, closing to meet sellers needs. The seller and you could of loved it.
Remember you always run the risk of not getting other offers and alienating an excellent buyer.
Each case is different and should be handled as such.
NJ and New York offers mean nothing, until they get a agreement from the attorney in our case the p&s - they get a better offer during the attorney review and they can take it,