Deborah Madey - New Jersey

Hi Donna,

Your question needs to be directed to an attorney, and an attorney will need a lot more detail to provide a response.

As a real estate broker, our company policy is that we only present offers in writing. An offer to purchase can be received via an email attachment. But, that is not a legally binding agreement. We often ask clients to email us specifics during counteroffers and negotiations to ensure accuracy. Because most contracts are reviewed by attorneys, we never submit a contract for review without actual signatures from all parties, with any changes to the contract initialed by all parties.

The general information I provided is not legal advice, but rather an attempt to shed light upon our common practices and policy. I hope this is somewhat helpful. To obtain a specific answer, you will need to expand upon the details with an attorney.

Regards,
Deborah Madey - Broker
Peninsula Realty Group
http://PeninsulaFirst.com - Thu Nov 13 2008, 12:24

There are a few perspectives to consider: legal, Realtor association rules (if applicable), ethical, and maintaining good relations w/ your buyers for a smooth closing.

If your contract terms prohibit you from continued marketing of your property, then you would be violating the terms if you did. If your contract does not prohibit your actions, you are probably within legal rights to do so. I am not an attorney, nor have I reviewed your contract. Consult an attorney if you are concerned with the legal aspects of your actions.

Many Realtor associations or MLS membership organizations prohibit the continued marketing of a property once it has gone under contract. There can be some exceptions when the contract terms include sale contingencies. There are Realtor and MLS orgnanization which will still require the property be reported as under contract....even with contingencies. Once the property is reported as being under contract, showing will decrease dratically or completely. Consult your Realtor if you are are represented to find out what rules apply for your location,

Buyers can become uncomfortable if and when sellers continue to market a property. Some might consider it an ethical breach, unless there is sale contingency and an agreement between the parties about the active marketing. It is important to maintain a good relationship with the other party in contract.
While you will certainly advocate for your best interests, treat all with respect and remember the golden rule.

Good luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Sun Oct 19 2008, 11:46

Under pricing is a very effective marketing strategy. It generates immediate market interest and creates an auction type atmosphere. We see it with short sales and banks, but rarely with homeowners who are sellers. Homeowners often believe they will leave money on the table if they under price.

For you, as a buyer, be less concerned if your offer is under or over list price. Would you rather get a 15% discount from list and overpay, or pay 15% over list, but get a great deal?

If it is under priced and multiple offers develop, know where your cut off is. Study your comps, review the data with your agent/broker and determine your stop point. If you pay over list and are within your stop point, great. If it exceeds your stop point, walk away and go after the next one.

Good Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Sun Oct 12 2008, 23:56

You could spend 20K on the living room or you could do the entire house for under 10K,

You can make this work with a budget of 20K. How you budget per room and allocate for extras will be based upon your priority. For example, one person might determine that they will rarely use the LR & DR and therefore, inexpensive furniture is the best option. Another person may determine that these formal rooms should have high quality furnishings from top manufacturers and recognized brands that carry a high price tag.

You can furnish your home for 20K. You will need to prioritize and allocate budgets accordingly.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Fri Oct 10 2008, 21:56

Hi,

The expiration clause, or protection period, can be any time period from zero to 365 days. There is often a correlation between the amount of marketing that a broker does for the seller and the length of time of the protection period.

Sellers who insist on a short expiration period will usually draw question from the Realtor about why. As the earlier posters have explained, if a seller relists the property with another Broker, the expiration clause is automatically terminated. This clause only applies when the property is not relisted, and a buyer who saw the property during the time it was represented by the named Broker contracts to buy the property after the listing contract expires.

Often, 30 days is considered to be unreasonably short by Brokers. It would be easy for unethical buyers and sellers to wait it out to Day #31, and execute a contract. By and large, most people are honest….and that probably holds true within real estate as well as other industries. Unfortunately, our law books are thick with rules because of the actions of a few. The same holds true in real estate. The dishonest few are the reasons we have fine print in contracts. If you have a Broker who invests little into marketing the listing, he/she will probably be willing to keep the expiration period quite short. If the Broker has invested heavily in the marketing of your property, chances are there will be a higher expectation of a longer expiration clause/protection period.

I have heard sellers boast when they achieve short listing contracts, or short protection periods. In instances such as this, I have also noticed the Broker has minimized investment and risk on the property, The boastful seller may have lost far more than he/she gained in their negotiations.

What I suggest is that a seller engage a listing contract with a protection period of reasonable length, have details about the services and representation be drafted into the contract, and have a termination clause, if, indeed, the Broker fails to deliver. Sellers typically are apprehensive of getting stuck in an undesirable or unproductive contract. We have found that this type of arrangement with clear details, and an escape clause for non-performance delivers a win-win for all parties.

Best of Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Fri Oct 10 2008, 16:38