Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"A verbal offer isn't worth the paper it's written on." Let's face it, agents don't like writing up offers that don't get accepted, either. But that's just the way it is. Besides, talking to the sellers agent is NOT talking to the seller, who is the one making the final determination.
I'm glad you're a man of your word -- however, you can't take your word down to the courthouse to be recorded. :-)
No seller's agent is going to tell someone not to bother putting in an offer, even if they have five in hand. They might say, "I've got two offers that are above asking price that are currently being evaluated," which is helpful if you have a buyer who consistently underbids every freakin' asking price by 10%. :-) Verbal agreements are more common during repair negotiations before they are put on paper.
"They might say, 'I've got two offers that are above asking price that are currently being evaluated.'"
Really?
Disclosing terms of a competing offer is acceptable in Atlanta? It is not where I work.
A "verbal offer" is just another name for a "conversation".
So yes, conversations happen all the time, but since there is nothing binding about them in the least, they aren't really categorized as "offers".
About the only thing they are good for is when you have a client wanting to lowball, and you want to know if there are already other offers on the table, and you shouldn't waste your time.
And yes Mike, disclosing terms of an existing offer is totally legal and ethical if the seller has given you permission to do so (which most sellers in my area give). The seller is a party to the contract and can authorize any terms to be discussed that they choose. Totally normal in my market for an agent to say "we already have multiple offers over asking price".
A "verbal offer" is just another name for a "conversation".
So yes, conversations happen all the time, but since there is nothing binding about them in the least, they aren't really categorized as "offers".
About the only thing they are good for is when you have a client wanting to lowball, and you want to know if there are already other offers on the table, and you shouldn't waste your time.
And yes Mike, disclosing terms of an existing offer is totally legal and ethical if the seller has given you permission to do so (which most sellers in my area give). The seller is a party to the contract and can authorize any terms to be discussed that they choose. Totally normal in my market for an agent to say "we already have multiple offers over asking price".
Actually, as I indicated, "Nope." For listing agents to engage in shopping offers without the BUYERS' express approval (I would infer, "In writing") is hardly legal in NC and ergo, unethical. The rule trumps ethical standard lapses, everytime.
As a buyer, if you had the opportunity to request that your offer remain confidential, would you agree to allow a listing agent to shop it? I sure wouldn't.
From our NCAR Exclusive Buyers Agency Agreement:
"12. CONFIDENTIALITY OF OFFERS. Real estate brokers are prohibited by N.C. Real Estate Commission rule from disclosing the price or other material terms contained in a party’s offer to purchase, sell, lease, rent or option real property to a competing party without the express authority of the party making the offer. However, sellers may elect not to treat the existence, terms, or conditions of any offers Buyer may make as confidential. Additionally, sellers may elect not to disclose or authorize seller’s agent to disclose the existence of any other offer(s). "
So, once again, local rules rule.
Last edited by MikeJaquish; 11-09-2015 at 04:17 PM..
Actually, as I indicated, "Nope." For listing agents to engage in shopping offers without the BUYERS' express approval (I would infer, "In writing") is hardly legal in NC and ergo, unethical. The rule trumps ethical standard lapses, everytime.
As a buyer, if you had the opportunity to request that your offer remain confidential, would you agree to allow a listing agent to shop it? I sure wouldn't.
From our NCAR Exclusive Buyers Agency Agreement:
"12. CONFIDENTIALITY OF OFFERS. Real estate brokers are prohibited by N.C. Real Estate Commission rule from disclosing the price or other material terms contained in a party’s offer to purchase, sell, lease, rent or option real property to a competing party without the express authority of the party making the offer. However, sellers may elect not to treat the existence, terms, or conditions of any offers Buyer may make as confidential. Additionally, sellers may elect not to disclose or authorize seller’s agent to disclose the existence of any other offer(s). "
So, once again, local rules rule.
However, the next sentence after the one you bolded says that the seller can tell someone. Just the agent can't. Personally, I don't see the difference between the seller saying it, and the seller telling their agent they can say it. So I think that is a stupid distinction, but I concede that in your state, it is not allowed.
In Idaho, the Confidentiality of Offers section says: BUYER understands than an offer submitted to a seller, and the terms thereof may not be held confidential by such seller or seller's representative unless such confidentiality is otherwise agreed to by the parties.
However, the next sentence after the one you bolded says that the seller can tell someone. Just the agent can't. Personally, I don't see the difference between the seller saying it, and the seller telling their agent they can say it. So I think that is a stupid distinction, but I concede that in your state, it is not allowed.
In Idaho, the Confidentiality of Offers section says: BUYER understands than an offer submitted to a seller, and the terms thereof may not be held confidential by such seller or seller's representative unless such confidentiality is otherwise agreed to by the parties.
In NC, licensees are legally held to a higher standard than consumers. Consumers just cannot lie.
The distinction matters, IMO, to reflect that fact.
And, the NCAR forms are also used by buyers agents in FSBO transactions, so letting the buyer know that a seller is not bound as an agent is serves the buyer with clarity.
I don't believe we even have a section in our offer contract that deals with confidentiality. In MA, confidentiality of offers is totally at the discretion of the seller. In my listing contract, there are 3 different levels of offer disclosure that the client can choose from. Typically, I recommend to my sellers that they allow me to disclose the existence of offers but not the details. This is the "medium" level of disclosure listed on the form.
While shopping for a home, my agent did an excellent job of scoping out information. It was amazing the intel she came back with. Many a listing agent confided in her what the deal was, some pertinent, some not. Potential short sale, no lower than list accepted, priced the way it was to allow 5K seller assist. Divorces were the absolute worse an I made a conscious decision to avoid such properties, especially if we had issues getting in to view the home. I am certain some of the agents provided more than they were authorized. But, everything verbally agreed upon did wind up in my email box to docusign.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
