Has anyone had experience with reverse contracts?

Asked by Melanie Narducci, San Francisco, CA Tue Jan 8, 2008

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9
Alan May, Agent, Evanston, IL
Wed Jan 9, 2008
BEST ANSWER
Looks like I have to explain further, since someone gave me a "thumbs down" probably figuring I was trying to push my own buyer off the fence.

We had a listing that was languishing on the market, and we'd had many showings. One couple had seen the house 3 separate times, but they had a house to sell, too. They were very hesitant to bring an offer, with a house-sale contingency because they were concerned that we would not accept one.

Recognizing that we were hurting ourselves by "sitting" on the market, we made a pre-emptive strike by writing up a reverse-offer to this couple, with a house-sale contingency.. 30 days to get under contract, 90 days to close, at 98% of our list price... this got the buyer off their seats, and we began negotiating in earnest, and came to an agreement 60 days to get under contract, 90 days to close @ 96.5%. This is a deal that never would have happened, since we had a very tentative buyer, their property wasn't on the market yet, and I doubt they would have ever made the move.

Our next step would have been a price reduction, which would have taken us BELOW 96.5%... so this was a win-win!
3 votes
Alan May, Agent, Evanston, IL
Tue Jan 8, 2008
I have used them and found them to be a very effective tool for getting a potential buyer off the fence, and come buy my listing!!

(I like to call them pre-emptive strikes!)
4 votes
Karen Wenzel,…, Agent, Brookfield, WI
Tue Jan 8, 2008
Are you talking about a Seller preparing an offer for a Buyer? I have proposed that in the past year for a couple of my Sellers, when a Buyer has seen the property multiple times, and still hadn't written an offer. None of them actually went through with it, but I know of several agents in our company that have done that. It's at least another way of finding out if a Buyer is serious, especially if the offer is at a level lower than the list price.
Web Reference:  http://www.GoPackerUp.com
3 votes
Alan May, Agent, Evanston, IL
Wed Jan 9, 2008
no problem, happy to share... and it looks like I was right, as now one of those thumbs down has turned into a thumbs up!!! Woo hoo!
2 votes
Christopher…, Agent, Hemet, CA
Wed Jan 9, 2008
Thanks Elvis....I never would have thought of that approach and, thanks to Melanie for bringing up the idea. This could make a difference in many circumstances.....Out of the bos thinking and sharing this information is what we should do more of as a community and....as true professionals. Thank you.
1 vote
Melanie Nard…, , San Francisco, CA
Wed Jan 9, 2008
Thanks for the clarification, Elvis! You get the thumbs up for that!
1 vote
Stacey A. Ma…, , Westfield, MA
Tue Jan 8, 2008
LOVING this site - I would never have thought of that! Thank you!!
1 vote
Tim, , Boston, MA
Thu May 1, 2008
This is a good idea when ths sellers knows that they have what the buyer wants, and need to get the process moving. I don't see it done that often, but it is a great idea.

Check out UTerms for active buyers looking to make a purchase.
Web Reference:  http://www.uterms.com
0 votes
Melanie Nard…, , San Francisco, CA
Tue Jan 8, 2008
Thanks, Karen! That's exactly the scenario I was thinking.
0 votes
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