Thanks to everyone who joined us at the most recent Legal Forum! We had a great discussion about offer submission deadlines and related practices. Here is a recap:
- Selecting a time during which the agent will review offers with their seller may be more convenient, especially if there will be multiples or if the seller is out of town… so long as each offer is sent to the seller as they come in, in accordance with IREC Guidelines and the NAR’s Code of Ethics Standards of Practice 1-6.
- Create a spreadsheet to summarize the offers for sellers, noting the net of each, key terms, and pros and cons related to any of the seller’s previously determined needs decision criteria… which is also a good crosscheck for the listing agent’s records.
- Some sellers may choose a consolidated listing/showing/offer window during which they might go out of town for a long weekend to accommodate showings, or, in consideration of COVID protocols, leaving their home once and then sanitizing just once after they return.
- Some said they use the “Coming Soon” status to let buyer’s agents know that a property will be available in the next few days, ensuring the listing photos, descriptions, supplements are all available, and note in agent remarks the date and time when showings will be begin. This can help reduce some of the frenzy around showing requests with a new listing goes live or the number of offers received “sight unseen.” (Please review IMLS’ Coming Soon rules if you use this and remember showings are NOT allowed for properties in this status.)
- To set expectations, listing agents can outline the procedure by which sellers will accept showings and review offers, in general and especially if they are setting deadlines. This could be included in agent remarks or a separate flyer linked under the Documents tab on IMLS. It may be worth noting that the seller may select an offer earlier if they so choose.
- To help alleviate anxiety from buyers (and buyer’s agents) listing agents should confirm an offer has been received and presented to the seller, and the date by which a decision will be made. Then be sure to reach out to all agents whose clients’ offers were not accepted so they know where things stand. It was discussed whether to share the accepted list price or any terms that won (with the seller’s permission) so a buyer knows where they stand in general. (Also read NAR’s Code of Ethics Standards of Practice 1-7, requiring listing agents to provide “written affirmation… the offer has been submitted to the seller, or a written notification that the seller has waived the obligation to have the offer presented, upon written request of a buyer’s agent.)
The final pieces of advice were to communicate (communicate, communicate…) and be kind. We’re all in this together and working collaboratively and professionally with one another in this unprecedented, fast-paced, and competitive market is not only for the benefit of each other and those we represent.
Hopefully these tips were helpful and we encourage you to work with your management team or legal counsel to create policies and procedures that work best for you… and then be sure to clearly communicate them with your fellow REALTORS®!
This content was summarized from the discussion at a recent First Friday Legal Forum, offered exclusively to designated and managing broker members of BRR. It is provided here for educational and informational purposes only. It is not intended to be nor, should it be used as a substitute for legal advice regarding any specific circumstance. Every fact and situation is different and you should consult with your personal attorney before acting upon the matters discussed during these forums.
