Realtor as Conduit -- and Filter

When Do You Tell the Seller?

The Buyer's Agent called you up after the first showing to say it went well, and to ask a few questions about the house's condition.

The second showing was yesterday.

Then, mid-afternoon today, the Buyer's Agent called to say that she is meeting with her client tonight to write an offer, and that she expects to have it to you tomorrow morning.

Question:

When do you tell your client, the Seller, that you're expecting an offer?

My answer (and most experienced Realtors'): never.

(Sorry, it was a trick question.)

Rather, the time to tell your client that you have an offer in hand for their home . . . is when you actually have an offer in hand for their home.

Managing Expectations

Which is not to say that my clients don't know what's going on -- they do.

Depending on their guidance and wishes, I'll typically relay showing feedback as I receive it, and give periodic reports about what's happening (or not) in the market around them.

But I've learned from experience that nothing's worse than calling an anxious, expectant client to alert them that an offer is imminent, then waiting.

And waiting.

A small percentage of the time, I suspect the other agent (or their client) of purposeful manipulation.

However, by far the more common scenario is that their clients cooled off on the home, warmed up on another, or simply got busy at work, home, etc. and couldn't find the 2-3 hours it takes to meet with their agent to formulate an intelligent offering price, then write a careful and thorough Purchase Agreement (add 50% for first-time Buyers).

As a Listing Agent, I'll certainly be in regular touch with the Buyer's Agent (and any other Buyer's agents who've expressed interest).

However, it 'ain't a real offer till I have it in hand.

P.S. As far as I'm concerned, it's not a done deal till my (Selling) client's proceeds check shows up on their bank statement!

When Is It REALLY a Done Deal?

Milestones in a Deal

If you're an office manager, stop reading here.

If you're not . . . continue.

So, when is a real estate deal really a done deal?

It's not when the last signature lands on the last blank line in the Purchase Agreement.

It's not the technical, legal definition, i.e., when the now-executed Purchase Agreement is constructively delivered to the other party (getting it to their agent qualifies).

And it's not even when the legal consideration -- the earnest money check -- is received or deposited.

Give up?

It's when the Realtor turns in the sale (at least so far as Buyers' agents are concerned).

Real Estate's "Fat Lady?"

While MLS rules strictly prescribe such things as how long brokers have to deposit earnest money checks, the reality is that agents -- especially Buyers' agents -- have been known to procrastinate turning in the paperwork accompanying a sale.

No doubt that's because Realtors as a group tend to be allergic to paperwork.

And it can also be because of various loose ends, or because needed information -- like who's doing the closing -- isn't known yet.

But there's a larger, practical element.

Realtors find the time to collect that info once the deal has slowed a down a bit. Not coincidentally, that's also usually the point when the deal has firmed up.

But it's also the case that Realtors don't make the time to pull all the sale paperwork together until they're reasonably confident that it's a done deal.

Turning in the paperwork is tantamount to saying, "Done!"

P.S.: Unfortunately, while turning in paperwork promptly can avert a fine, it won't get you paid any faster; that only happens when the deal closes, typically 4-6 weeks later.

Who Do You Call First?

Done Deal! Then What?

It's 9 p.m., and you've just agreed to terms with the Seller you've been negotiating with to buy their home.

You initialled the last change on the Counter Offer form, and faxed it to your Realtor.

Who do you call/tell first?

A. Your parents, to tell them the good news!

B. Your best friend, to let them know you're moving.

C. Your kids, to let them know.

D. Your home inspector.

Answer: D

That's especially the case in late April, probably the most active time of the year for purchasing a home even without the tax credit expiring in 8 days.

The home inspectors I work with most frequently are working 12-plus hours a day now, seven days a week, and returning my phone calls at 8 p.m. (or later).

With that in mind, it might be a good idea to: a) lengthen the time allowed for an inspection in the Inspection Contingency; and b) consider using an inspection company that has multiple inspectors on its staff.

P.S.: And yes, I've told clients to call home inspectors (or leave a message) at 9:30 p.m.