Must continue submitting all offers and counteroffers to the seller
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Must continue submitting all offers and counteroffers to the seller
Connor “with Honor” MacIvor - October 28, 2024** 0 Comments | Add Comment
The Offer Submission Duty: A Realtor’s Obligation to Sellers
In real estate, presenting offers to sellers is more than a transaction—it’s a process bound by professionalism, ethics, and the Realtor Code of Ethics, which underscores an agent’s duty to represent their client’s interests fully. The National Association of Realtors (NAR) mandates that all offers and counteroffers be submitted to the seller until a property is officially closed, unless otherwise agreed in writing by the seller.
As someone who spent years as a first responder with the LAPD, I understand deeply the role that standards and ethics play in maintaining trust and order. In law enforcement, we often use “shall” to denote non-negotiable obligations; in real estate, NAR’s “must” conveys a similar level of seriousness. This strict requirement ensures that sellers are never left in the dark about potential buyers, regardless of the offer’s attractiveness or market alignment.
Let’s examine Standard of Practice 1-7 in detail, considering how it applies to various real-world situations sellers might encounter.
Understanding Standard of Practice 1-7: The Realtor’s Obligation to Submit All Offers
Standard of Practice 1-7 states that as a listing broker, I must present all offers and counteroffers to the seller up until the sale is closed or a lease is executed unless the seller explicitly waives this obligation in writing. This means that I, and every other Realtor bound by this code, am legally and ethically required to keep the seller informed of each and every offer, even if the offer seems suboptimal, ill-timed, or, in some cases, downright offensive.
To put it plainly, the duty to submit offers is an enduring obligation until the deal is closed, which ensures that sellers retain complete control over their property decisions. This duty is not waived by personal opinion or judgment; the Code’s language makes it clear that we act as advocates for transparency and client autonomy.
The Reasoning Behind the Requirement
This requirement’s importance becomes even more apparent when we consider the broad range of sellers’ circumstances and motivations. A homeowner’s decision to sell may be driven by various factors—retirement, relocation, financial need, or even downsizing. Each seller has unique goals, and it’s my duty to respect and honor those goals by presenting all offers.
Control and Informed Decision-Making
The NAR’s mandate recognizes that sellers are entitled to make their own decisions about every offer, regardless of the offer’s perceived value. Without full visibility into all offers, sellers might miss an opportunity that, while appearing unappealing at first glance, could still serve a strategic purpose within a broader negotiation. For instance, even a lowball offer could act as leverage in negotiations, or it might prompt other prospective buyers to act faster.
Ensuring Fair Market Representation
In a fair and transparent market, all offers must be visible to the seller. This protects sellers from potential manipulation or withholding of information, which could otherwise lead to unethical practices. It creates an environment where sellers are fully informed and able to make decisions that align with their goals and values.
Safeguarding Realtor Integrity
The duty to submit all offers also safeguards Realtor integrity. As Realtors, we operate under a framework of trust, especially in a field where clients rely heavily on our judgment, knowledge, and honesty. By adhering strictly to Standard of Practice 1-7, I am showing that my commitment to my client’s interests is paramount, regardless of personal opinion on offer quality.
Dealing with “Offensive” Offers: A Reality of Real Estate
In real estate, every seller hopes to receive strong offers that meet or exceed their asking price. However, as any experienced Realtor will attest, there are always offers that come in below expectations—some of which can be seen as downright offensive by sellers. Whether due to cash-buying companies seeking undervalued properties or buyers looking for deals, “offensive” offers are part of the territory.
What Constitutes an “Offensive” Offer?
An offensive offer is often one that is significantly below the market value of the property, perhaps with terms that are overly demanding or dismissive of the seller’s position. These offers can feel like a rejection of the seller’s perceived value of their home, leading to feelings of frustration, disappointment, or even offense.
Despite this, the requirement to submit these offers remains firm. My duty is to inform, advise, and facilitate the seller’s response, whether that’s a counteroffer, rejection, or acceptance. This is because it’s ultimately the seller’s decision, not the Realtor’s, as to what constitutes an acceptable offer.
Cash Offers and “Quick Sale” Companies
Many cash buyers and “quick sale” companies make their business by offering speedy, hassle-free transactions, often with few conditions, minimal inspections, and a promise of a quick close. While some sellers find value in this simplicity, others see these offers as opportunistic attempts to capitalize on circumstances that might pressure them to sell quickly.
Yet, even in these cases, it’s my ethical obligation to present these offers without judgment. For some clients, the ease of a cash offer might align with their priorities, especially if they need to sell urgently. On the other hand, sellers who are offended by these offers retain every right to reject them. By presenting all offers, I uphold transparency and respect the seller’s right to make fully informed decisions.
The Importance of Waiving Submission Obligations in Writing
If a seller feels strongly about not receiving certain offers—for instance, they may prefer not to see anything below a specific price threshold—they have the option to waive the requirement in writing. However, this waiver must be clear and unequivocal, outlining the seller’s specific wishes.
Waiving this obligation offers the seller some control over what types of offers they’re presented with but also means they could miss out on offers that may still be of value. For example, an offer below a set price might still be countered, or it might come from a buyer who is flexible on price but needed a starting point. Clear communication and an understanding of the implications are key.
Strategies for Handling Multiple Offers and Counteroffers
In competitive markets like Santa Clarita, it’s common for sellers to receive multiple offers, often within a short timeframe. Here’s how Standard of Practice 1-7 and other ethical guidelines guide this process:
Overcoming Seller Misunderstandings and Frustrations
For sellers new to real estate, the requirement to review every offer can be confusing or frustrating. Here are common misunderstandings and how I address them:
1. “Why Am I Receiving Low Offers?”
Some sellers may feel insulted by low offers, interpreting them as a lack of respect for their home’s value. I explain that in a dynamic market, buyers test the waters with a range of offers, which does not necessarily reflect the home’s true value. Instead, it’s an opportunity to engage or to hold firm, depending on the seller’s strategy.
2. “Isn’t It a Waste of Time?”
While it can be tempting to dismiss low or “offensive” offers as time-wasting, these offers can sometimes serve as negotiation starters. A low initial offer may indicate the buyer’s flexibility and willingness to negotiate, opening the door to achieving the seller’s desired terms.
3. “Can’t I Just Skip Over Low Offers?”
By waiving the obligation in writing, sellers can indeed limit the types of offers they see. However, I caution that this may limit their negotiating power and potentially reduce the number of interested buyers.
4. “What About Confidentiality?”
All offers are treated with the utmost confidentiality. Any disclosure of offer terms or conditions to third parties is made only with the seller’s explicit approval, ensuring trust and respect throughout the process.
Navigating Ethical and Legal Standards as a First Responder Realtor
As a First Responder Realtor, I know firsthand the importance of rules and guidelines in building and maintaining trust. Just as laws keep society safe and orderly, the Realtor Code of Ethics protects both the integrity of the real estate profession and the best interests of clients. Standard of Practice 1-7 reinforces the importance of transparency, ethical conduct, and respect for the client’s autonomy.
Remaining Objective and Professional
Every offer is treated with professionalism, without bias or judgment, regardless of my personal views on its merits. This ensures that sellers feel respected and confident that their interests are the top priority.
Respecting Seller Autonomy
My role as a Realtor is to empower the seller to make informed decisions, not to dictate outcomes. I support sellers by offering advice, market insights, and objective evaluations, but the ultimate decision rests in their hands.
Continuous Education and Adherence to Standards
Adhering to Standard of Practice 1-7 requires ongoing commitment to education, communication, and understanding the latest market trends. By staying informed and transparent, I maintain my clients’ trust and the integrity of the real estate profession.
Final Thoughts: Partnering with a Realtor Who Prioritizes Ethics and Transparency
At SantaClaritaOpenHouses.com, my mission as your Realtor is to act with honor, transparency, and respect for your goals. Whether you’re navigating offers, evaluating market trends, or seeking a seamless selling experience, you deserve an agent who prioritizes your best interests and upholds the highest ethical standards.
Selling a home is a significant decision, and every offer is a part of that journey. As a First Responder Realtor, I am committed to serving with integrity, honoring each seller’s unique perspective, and ensuring that every aspect of the process is handled with professionalism and respect.
If you have questions about offer submission or want to discuss how I can support your real estate goals, don’t hesitate to reach out. Let’s work together to achieve the best outcome for you, grounded in trust, ethics, and a commitment to your success.
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