Last week I was working with a CASH Buyer who was looking for a home for himself and his wife. He was from out of town, and flew in to San Diego for the week-end. I spent the day with him and showed him several properties. One property in particular, which had just come on the market, caught his eye and he wanted to make an offer. I had spoken to the Listing Agent a few days before and he told me that there were 2 offers on the table, one at full price, but other offers were still being considered.
After we went back to the property, and priced out the amount of renovations it would need (this house is pretty close to a “scraper”), he decided on a fair price to offer.
I called the Listing Agent and told him I had a CASH offer coming in from a Buyer who is familiar with fixer-uppers, and tried to get an idea if there were any flexibilty in price. I usually do this before submitting any offer. He then told me the owner decided to accept the first full priced (not cash) offer and that he (agent) had no choice in the decision.
Now, I don’t know about you, but if I am the Listing Agent, I am the one counseling the Seller which offer to accept, not the other way around. Does the Seller know that in this market, deals fall through mainly due to financing? Does the Seller know the Buyer can come in at full price and then after the property inspection “nickel and dime” them to death, tying up the property for a month or more, and then walk away or not get financing (which happens frequently in this market)? Of course this could happen to a CASH Buyer also, but to not advise his client that a CASH offer would make a whole lot more sense to at least consider, and that it would reduce the variables? Or that the Lender may have issues with lending on the property in this poor condition?
When you represent a Seller as their Listing Agent, how do you allow your client to tell you which offer to accept? I thought the agent was dead wrong in this scenario.