Resources to Navigate an Unprecedented Market
August 5, 2020 Industry News
We know that this current market is unparalleled in its level of activity, and the situations that it is putting you into. CCIAOR has compiled a list of the resources you need to navigate this unprecedented and fast-moving market.
- What to Do About Offers Without Deposits Received
Depending on the offer form used, an offer is not binding if the deposit is not received. Most of our members use the MAR's Offer to Purchase Residential Real Estate, which is NOT binding unless the deposit is received. This means the property can stay 'Active' in the MLS, be shown, and other offers accepted. Click HERE to read more about what binds an offer.
- What You Need to Know About Escalation Clauses
In a market like this, it is best to understand escalation clauses representing buyers and sellers. Failure to understand them may have sellers leaving money on the table by accepting a lower offer. Click HERE to read key considerations of an escalation clause.
- Buyer Agent Compensation is Negotiable, but There Are Wrong Ways to Negotiate
Yes, you can ask the listing broker to negotiate the offer of commission. The one exception is that you may not submit an offer to purchase that is contingent upon an increase in the commission paid to you by the listing broker. An offer of that nature is thought to be inconsistent with your fiduciary duty to the client. This request can be made at any time during the transaction, even after showing the property or submitting an offer to purchase on behalf of the client. Click HERE to learn the ways to negotiate buyer agent compensation that aligns with Article 16 of the REALTOR Code of Ethics.
And ALWAYS REMEMBER, attempts to create an agreement among agents to only show or list property that offers a certain buyer agent compensation is ILLEGAL as it violates antitrust law.
You can find answers to frequently asked questions about real estate transactions via the MAR Legal Hotline, a free member benefit.