U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 07-19-2008, 03:36 PM
 
14 posts, read 60,688 times
Reputation: 11

Advertisements

If a real estate agent is representing both the seller and the buyer what are the pros and cons of giving or receiving an unwritten offer? The buyer does not want to have the agent actually write an offer until the negotiations are complete to save on paperwork. Any thoughts are appreciated.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 07-19-2008, 03:54 PM
 
Location: Melbourne, FL
1,007 posts, read 5,314,900 times
Reputation: 634
I actually experienced a scenario close to what you are referring to. In my area of NC, all of our offers (at least ones I'm involved with) are written and then negotiated. Having that said, I had some property in Western PA that was just sold (last week). What the real estate agents do there is what you describe. They make verbal offers, negotiate terms and then write the formal offer. I had a hard time grasping this concept as I didn't understand what/how did I know they were a: qualified, b: actually interested and not just seeing what would happen, etc. So I asked for proof of funds from the bank before a I negotiated. Then we proceeded to negotiating the sale. Very odd, but it worked out fine. I think different parts of the country do things differently and what they are used to doing. The paperwork is lengthy and time consuming, so their thought process was to have everything finalized, then sign off on it. I can't see that happening in other or perhaps more populated areas, such as Miami, New York or LA, but it did work out for me. I wonder how it would be handled with multiple offers or the possiblity of one changing their minds before signing. Seems it would be a problem or maybe they just figure, "oh well, it happens" and go on.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-19-2008, 03:54 PM
 
Location: Central Texas
20,816 posts, read 40,147,908 times
Reputation: 24374
Everything should be in writing. It documents everything and helps eliminate misunderstandings. "Saving on paperwork" isn't a good reason for bypassing the submission of a written offer. In fact, paperwork is critical for keeping a paper trail of the transaction, including negotiations.

I wouldn't, as a buyer's agent, submit an offer verbally. I also wouldn't, as a seller's agent, pass on a verbal offer but would wait to receive it in writing.

It's not an offer until it's in writing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-19-2008, 03:57 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 20,326,023 times
Reputation: 6420
Get everything in writing first! At least the initial offer should be in writing. Save on paper? Please! The buyer isn't much of a buyer or the agent isn't much of an agent if they can't seem to put something together in writing.

The statute of frauds in CA says all agreements for real estate must be in writing. My business law professor (long ago and far away) absolutely emphasized the word ALL.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-19-2008, 09:16 PM
 
Location: Barrington
56,641 posts, read 39,024,313 times
Reputation: 18315
Quote:
Originally Posted by TexasHorseLady View Post
Everything should be in writing. It documents everything and helps eliminate misunderstandings. "Saving on paperwork" isn't a good reason for bypassing the submission of a written offer. In fact, paperwork is critical for keeping a paper trail of the transaction, including negotiations.

I wouldn't, as a buyer's agent, submit an offer verbally. I also wouldn't, as a seller's agent, pass on a verbal offer but would wait to receive it in writing.

It's not an offer until it's in writing.
I am with you TexasHorseLady.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-20-2008, 12:00 AM
 
Location: Cosmic Consciousness
3,871 posts, read 16,021,082 times
Reputation: 2660
If it's not in writing, it's not legally binding. It's not negotiable. It's not real.

Also, I would NEVER have the same Realtor represent me as seller and someone else as buyer, or vice versa!! The Realtor has a fiduciary responsibility to one or the other, but not to both as seller's and buyer's interests are often in conflict. Get your own buyer's agent pronto!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-20-2008, 08:52 AM
 
Location: Palm Coast, Fl
2,249 posts, read 8,350,985 times
Reputation: 1006
The pro is to save time, to see if it's even worth it to get to the point of writing a contract up. The con is that it's not binding until it's in writing and signed by both parties and delivered.
I have called the other agent and told them this is what the buyer is offering, it's less than what you are asking, should I write it or not. They call the seller, tell them the deal and the seller either says, write it or counter. Once we get to that final point, I write it up and send it on over. Everyone understands the intent of doing it that way.

As for those of you saying things about fiduciary responsibility, etc, before you purchase or sell in Florida and other states that have transaction brokerage read up on the laws or have a RealtorĀ® explain them to you so you don't cause anyone to have to deal with a procuring cause issue please.
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

Ā© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top