Verbal Offers are Terrible Advocacy

By
Real Estate Broker Owner with J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

Unlike most of the US, in Westchester and the surrounding areas of New York real estate contracts are prepared by attorneys only after a process of offers, inspections and due diligence. Other than mortgage, contracts are non contingent. There is not even a deposit of any kind until contracts are signed. It is not at all unusual for an accepted offer to wait 2 weeks for fully executed contracts. 

Most of the time, therefore, offers are submitted on company letter head with terms specified and accompanied by a pre approval. The more specificity, the better. Sellers are rightly very reticent to accept any offer without assurance of the buyer's ability to perform, especially since we are required to disclose an accepted offer per the code of ethics even with nothing signed

Every so often, I get an offer from an agent over the phone. They say they are buyer agents, but I really don't see how a verbal offer, without clear terms and a pre approval, sheds the best light on the buyer's ability to perform. If anything, it makes the agent seem indifferent and the buyer either unforthcoming or uncooperative. 

The old rationale that "I don't want to waste my time writing up an offer if it isn't going anywhere" is ironic- the best way to make sure an offer goes nowhere is to make a halfhearted, verbal offer with a mystery buyer. If you want to make that sale, you have to do work- it isn't a waste of time, it is your job. 

I wish I had a nickel for every time this has been said in our industry, but it has never been more relevant than now: put it in writing. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Buying
Groups:
40 Somethings
Bartender, Make it a Double
I Love NY
Independent Brokerages
Running a Brokerage
Tags:
offers
verbal offers

Comments 57 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
558,639
Chris Olsen
Broker Owner Cleveland Ohio Real Estate
Olsen Ziegler Realty

Hi Phil -- After reading your first sentence...are you saying inspections are done before an purchase agreement is reached?  Just curious how it works there in NY.

February 05, 2011 05:09 PM
Rainmaker
496,755
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
PRUDENTIAL VERANI REALTY- Portsmouth NH Real Estate

All great points made here today.  I enjoyed the read.  I've had this happen now and again and always tell them unless it's written, with terms, etc. and signed then is means nothing.  Get me the offer in writing and I'll see what I can do for your buyer.

 

Patricia/Seacoast NH & ME

February 05, 2011 05:25 PM
Ambassador
1,518,686
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

I prefer to have everything in writing.  Maybe it's the attorney in me, but it's the only way that it really makes sense.

February 05, 2011 05:59 PM
Rainmaker
334,058
Sylvie Stuart
Home Buying, Home Selling and Investment - Flagstaff, AZ
Keller Williams Check Realty 928-600-2765

Great post! I completely agree. It is our job and it definitely needs to be in writing!

February 11, 2011 05:56 PM
Rainer
18,608
Erika C. Harris
First United Realty

Is there really a such thing as a serious buyer with a verbal offer?

February 13, 2011 08:59 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
814,165

J. Philip Faranda

Broker-Owner
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Phil Faranda is broker and owner of J. Philip Real Estate LLC in Briarcliff Manor, NY. Since founding the firm as a sole practitioner in late 2005, the team has grown to over 30 agents & closed 350+ transactions valued at $140 million. He is in his 4th term as Vice President of the HGMLS. This blog commentary is geared toward consumers and industry colleagues alike. You can reach him at (914) 723-8900.
Warning: *Sarcasm and irony advisory at all times.*



CDPE

Search the MLS Like an Agent!

Down Payment Assistance

Add me to your Google+ circles!

Testimonials
113201
' There is no doubt in my mind that the house would still be on the market if it wasn't for Phil's proactive efforts. '
5.0/5.0
by drmoi
109285
' Phil was very responsive to our requests; he was very professional and respectful; he always gave us his honest opinion on the questions we asked. ... more '
5.0/5.0
by junglegirlnyc
106920
' Phil is a very honorable and respectful realtor. He has gone way above and beyond the call of duty for me not only once, but twice. He helped sell ... more '
5.0/5.0
by MommyJ9


J Philip Far…

View J Philip Faranda's profile on LinkedIn

Follow jphilipfaranda on Twitter


Become a fan on Facebook

Listen to internet radio with activebob on Blog Talk Radio

J Philip Faranda reviews