Giving everyone a shot

Put yourself in a buyer’s shoes. What do you think is fair?

by Louise Hull   If you’ve been in the real estate business for more than 30 minutes, you’ve had this experience: You spend several days (or weeks) working with buyers in search of the perfect home. Finally, there it is. You write the offer, negotiations begin, and just before the last signature is affixed to the bottom line, you get "the call" from the property’s listing agent. "I’m sorry, but another offer has come in on my listing at 123 Perfect Drive. It was higher than your buyers seemed prepared to pay" (and was miraculously written by the listing agent or her best friend for an in-house sale). "Anyway, the other offer is accepted and signed, but please tell your buyers we have other listings here at Perfect Realty and we hope they will try again." Well, sure.

Sound familiar? I am amazed at how often I hear some variation of this story. Sometimes the higher offer appears while you are on your way to deliver your offer. Sometimes it appears during the negotiations or when problems arise in the option period. The response is always, "Well, I have to represent the seller–and this offer is a few dollars higher."

Afew weeks ago, I overheard a conversation regarding a contract presentation by a REALTOR® from another city. The circumstances involved a seller who was out of town (and out of touch), preventing the timely (immediate) presentation of an offer on a co-broker transaction. I overheard the listing REALTOR® say: "I understand your concern, but let me assure you that even if another offer arrives, we will afford your buyer the opportunity to receive the first counter and accept or reject the opportunity to purchase this property." Yes, all offers would be presented to the seller. Yes, the seller would be given the opportunity of receiving the best price and terms. But, the first buyer would be presented with the first opportunity to contract.

When I questioned the listing agent about this procedure, a lengthy discussion ensued. Legally, there is no requirement to counter the first contract first. His answer to me was something I keep thinking about: "You know, when a person justifies their actions solely on legalistic grounds, chances are they have already abandoned the moral high ground."

There are a number of ways to handle the presentation of multiple contracts. In nearly every situation, the REALTORS® in our office encourage our sellers to use TAR form # 1926, Seller’s Rejection of Offer with Invitation for Submission of New Offer, with a clause inserted into the special provisions paragraph that states: "Multiple offers have been received and are being considered by the seller. Please submit your best offer no later than _______." We have even used this in a case where multiple full-price offers were received within 30 minutes of each other. The result was one offer substantially above list price. The unsuccessful buyer was still disappointed, but the seller got the best possible price and terms, and all parties felt they had been given a fair chance.

This concept of fairness is nothing new. The preamble of the REALTOR® Code of Ethics sets this ideal: "... REALTORS® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, ‘Whatsoever ye would that others should do to you, do ye even so to them.’"

It is through consistent, fair, "moral high ground" dealings that we can ultimately change the negative attitudes of consumers toward real estate agents. Can we change the world? Perhaps, perhaps not. But I can change my office–and you can change yours.

Louise Hull, CRB, CRS, GRI, is broker/owner of Cornerstone Properties in Victoria. She is a TREC commissioner and served as TAR chairman of the board in 2000. You can e-mail her at louise@louisehull.com.

Illustration © Digital Vision.

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