Is it ethical for a buyer to make an offer on a property when they can't make a move until their own unlisted home is sold?
That's a good point......and it is interesting how different markets will respond to how an offer is written. I do put an expiation date on some offers (depending on the client). Although, you can lose some points from time to time with that included on the front end........You may have heard the statement about "Minnesota nice". Whether it is a bank owned property or Mr. & Mrs. Seller some folks perceive writing in an expiration to be very pushy and can cost the buyers money in negotiations (you play your cards when you need to).
More importantly, there are also plenty of remedies to this situation....the seller could maybe lease the property back from the buyer after the closing, the closing could be postponed to accomodate the seller with an incentive for the buyer written into the contract, the seller can offer the buyer first-right-of-refusal and let them go shop for a property...if they find nothing else by the time the seller is ready, they buyer can be given a certain number of days to "rekindle" their offer and so on.....
This is definitely ethical and something we as Realtors are accustomed to working around for many different reasons.....Hope this helps!
Angela Faulkner, Broker
Principal First Realty
There are many reasons for putting the house on the market much earlier before it can be closed; especially since this is a buyer market and houses can be on market for quite sometime - a few common ones - the sellers want to take advantage of the one time $250,000 capital break, or 1031 exchange, or rental contracts are still in effect, kids are in school, etc.
On disadvantage for seller is unless the price is great and/or the property is unique, they might not get as many interest buyers because most of the people want to move right away; but you might also find the ones with similar needs on the buyer side.
Hope this makes you feel better about the situation.
Like you said; it really depends on the motivation / market on both sides - as long as you are both upfront and understand the position of the other side, then things can work out - part of the skills in negotiation, maintaining good network, reputation and relationship to make sure things work out right for our clients.
It should be a courtesy for the listing agent to tell the selling agent who presented the offer that it might take a while to receive response from the lenders. As a matter of fact, CAR has a special short sale addendum now for those properties.
Hope this helps with visualizing the question.
The ethical part of my question is the "unspoken" part that "it may take 2 - 3 weeks to get an answer to be accepted, rejected or canceled". Many agents handle this type of sale with great professionalism; while others are in question. The unspoken part of the sale comes when I see properties actively listed for 12 & 18 months in my market that are bank/cooperate owned which are still active. I know from talking with other agents in the area that have put in an offer on the same property (Agency relationship was not compromised).......and there is no action taken on the sellers/banks side to communicate the negotiations. We can do alot of speculation on what the listing agent may be doing, but that would not be appropriate.
This was a curious thought to see what other agents are experiencing with the increasing numbers of foreclosed properties.
It is perfectly understood that everything is negotiable. I don't think anyone should have a problem with that.
Best wishes in your next transaction!
I hope that helps.
Carl posted additional information about this at the link below.
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