Realtor advice please! (Austin: real estate, lease, loan) - Texas (TX) - City-Data Forum

southdown · 12-08-2007, 02:12 PM

We just put in an offer on a home and were first in, but we wanted an early closing date. We later heard (through our realtor) that there was a second offer on the home, with a later closing date, that the sellers were minded to prefer, so we immediately re-offered with more money and a later closing date.

We have just heard they accepted the OTHER offer based on the dates - without giving us the chance to extend the date - which we would have done if it meant losing the home! This seems crazy, we were first to offer but have been cut out of negotiations without a chance to extend on price or dates! Is this normal practice?

jenkirk · 12-08-2007, 02:35 PM

It is not normal, but in real estate many things are not normal. Their realtor should have asked for the highest and best bids by a certain time and let you know about the closing date being too soon.

There is a possiblity that the other offer was accompanied by a nice letter. I had a customer choose a slightly lower price offer once because the offer included a nice letter and they really wanted that couple to get the home. They also gave them all the repairs they asked for (even the ones that they should have not paid). So if you fall in love with a home, I would suggest writing a letter - your realtor should have some nice templates for one.

bungalowbob · 12-08-2007, 02:43 PM

Possibly, you should have offered a bit more money with an extension to sweeten your offer.

southdown · 12-08-2007, 03:22 PM

Well we DID re-offer with more money, extended the date and wrote a nice letter - what more should/could we have done?!!
Or (more to the point) what should the realtors have done?

atxcio · 12-08-2007, 06:12 PM

If you don't mind, what area of town were you looking in? I assume it was resale, approximately how old?

I think you did the only thing you could have done; sweeten the offer price.

I'm assuming that the other offer came on the same day as yours; so the house wasn't marked pending or anything when the other bidders bid. You may not know for sure your realtor submitted yours first, but it shouldn't matter if there is a multi-offer situation. When that happens, I thought all parties with an offer are asked submit their 'best" offer. So, the people with the later offer date could have also offered more money. Or, it could be some other factor (like the percent of cash vs. financing or something) about the offer that your realtor isn't telling you about.

You could always ask your realtor to put in a back-up offer, and then sit and wait out the 10 day or so option period to see if something happens with the other buyers. If the other buyers start to balk about the inspection, or request lots of concessions or repairs... the sellers might be more inclined to take a hard line and let the other buyers walk away, if they have your back-up offer. Just a thought.

southdown · 12-08-2007, 07:21 PM

Atxcio - Thanks for the tip! It was in NW Austin, on a 10 year old home.

We understand that we were the first to offer, and that the only reason given for the second buyer being preferred was they were more flexible on dates - nothing financial.

But sadly we didn't get the chance to discuss our potential flexibility.

And it seems the sellers' realtor was talking direct with the other buyers, whilst we had to go via our realtor - all appears wrong to me.

Trainwreck20 · 12-08-2007, 09:29 PM

It appears to me that the seller's realtor screwed up...his/her clients have lost money by not talking to all the parties involved.

southdown · 12-08-2007, 10:32 PM

Quote:

Originally Posted by Trainwreck20

It appears to me that the seller's realtor screwed up...his/her clients have lost money by not talking to all the parties involved.

Exactly. For all they know we might want the house badly enough to wait a year and offer $25k over price! But, they didn't ask...

Mike78613 · 12-08-2007, 11:42 PM

remember there is lots of fish in the sea. Don't take the first fish that bites the hook. Realtor can be playing with you. They want their 3% high as they can get it!!

austin-steve · 12-09-2007, 08:54 AM

Quote:

Originally Posted by Mike78613

remember there is lots of fish in the sea. Don't take the first fish that bites the hook. Realtor can be playing with you. They want their 3% high as they can get it!!

This is so untrue. Those of us who have been around and survived in the real estate business for a long time understand that it is never about the commission, ever. It's about creating good outcomes for the people we help. The money takes care of itself when the job is done right.

To the original post, you may never know exactly why the second offer beat you. Sometimes, they have an advantage if they knew an offer was already being considered. It is in fact not uncommon for sellers to be motivated by things other than the best bottom line, not uncommon at all.

What I tell buyers when they miss out on a deal is that it means there is something better waiting for them. This one wasn't meant to be. That is of course assuming the offer was properly written and the agent provided you every advantage by being competent.

A good offer:

1) Ready to sign as-is - a "clean" offer.
No mistakes, missing information, missing addendum's, errors, etc. A good offer leaves only the price to negotiate, and possibly the closing date if needed.

2) Communicates flexibility if that is a factor.
"Buyer is flexible on closing date and will consider a seller lease-back" can be written in Special Provisions to signal the agent and seller to ask about this if needed. There is no reason NOT to write this if a buyer is in fact flexible and the time frame doesn't create loan rate lock issues.

3) Is accompanied by a pre-approval letter.
Many offers are DOA without the loan letter. I will advise a seller against signing an offer before having a loan letter in hand. Often we'll call the lender if there are questions.

4) Is accompanied by a letter from buyer to the seller indicating why you love their home and how much you appreciate their consideration of your offer. DO NOT underestimate the power of a well written letter from the heart, especially if kids are involved on both sides of the deal. We've won many an multiple offer situation with a lower price and a great letter.

5) Agent to agent communication.
Buyer's agent should ALWAYS make phone contact with a listing agent prior to and during the offer process. The other agent needs to know that the buyer side of the deal is being handled by experienced and competent representation. I can't tell you how many "better" offers our sellers have passed up on because the offer was written sloppy and the other agent was a bozo. A common one is the bozo agent blind faxing a sloppy offer with no communication, cover letter, or anything else included.

I guess I could go on with more examples, but those are the big ones. If your offer lacked any of the above elements, you did not it the best chance of being chosen.

And something else will come along, maybe even a way better deal.

Steve