The real estate market is currently hot, with demand for homes higher than the available inventory. If you submit an offer for a home you like, the next thing you’ll want to hear is that the seller has accepted your offer. But you might be shocked to learn that the realtor hasn’t even shown the offer to the seller. So, why do realtors wait to present offers?
Generally, the realtor should present the offer to the client as soon as possible. But there could be exceptions, such as the seller giving instructions on when the realtor should send the offers, offers not meeting the minimum stipulated price, or the realtor waiting for all offers to come in.
However, where there’ll be delays in presenting the offers, the realtor should inform the buyers. If the realtor fails to submit your offer on time, you can report them. Here, we discuss why realtors wait to present offers and the rules for presenting offers.
When Should the Realtor Submit an Offer?
Generally, the realtor has to present any offer to the seller as soon as possible. It can be through various means such as email, call, or in person. But the seller has to be aware that offers exist on the property. The exceptions to presenting the offer are:
1. Seller Instructions on When to Present Offers
However, there may be restrictions to this rule. The seller might have some restrictions in place. For example, they might say they want only to receive offers once a day or once a week. So, if there’s a seller with those conditions, the realtor will have to wait and compile all the offers within that period and send them. If the seller should tell the agent to collect offers for a while before presenting, the agent should let the prospective buyers know they should submit their highest and best offers before the deadline.
2. Minimum Stipulated Offer
Also, the seller can say that they don’t want to receive any offers below a certain price. In those cases, the realtor might want to wait a while before presenting offers below the threshold to the seller. This is in the hope that a better offer will come. As agents of the seller, realtors have to follow the seller’s instructions. But if there’s no better offer after a while, the realtor will have to present the offer to the seller.
3. Waiting For All Offers
There are also times when the realtor might want to sit on the offers for a while. This is especially true when the house has just been listed. The realtor might want the advertisement to reach the maximum number of prospective buyers first. While that might be a good reason, it’s not enough not to submit the offer. If that’s the case, the listing should state it. If not, a buyer should reasonably expect their offer to reach the seller within 24 hours.
Laws on Submitting Offers
If a realtor fails to submit an offer or sit on it for a while before submission, they could be liable. Almost all states have laws that require all offers to be submitted. This means that the seller should get even text messages or verbal offers.
Often, the seller might ask the realtor only to send the top five or ten offers, especially if there are several offers. The catch here is that the best offer isn’t necessarily the highest offer. There are still other terms and contingencies that could determine how good an offer is. In such cases, most realtors will send the best offers. But they’ll still go ahead and send every offer. This is to avoid breaking the ethics of the profession.
The National Association of Realtors has rules of practice. One of them is that realtors shall submit offers and counteroffers objectively and as quickly as possible. What amounts to as quickly as possible remains debatable. But the realtor must protect and promote the interest of their client, who is the seller. Presenting the offer to the seller is part of promoting that interest. In most cases, as quickly as possible means immediately.
However, the realtor and seller can decide on using delay tactics as a negotiation strategy. The realtor should let the seller know of the risks in such cases. Although it’s unlikely to happen in a hot market like the present, one of the risks is that the buyer may withdraw their offer. The law allows this since there’s no valid acceptance yet. In that case, the seller has nothing. Informing the seller as early as possible allows for negotiations to start fast, if there’ll be any. It also means that they can do it fast if the seller wants to counteroffer or reject.
Can A Buyer Report A Realtor For Not Presenting Their Offer On Time?
If the realtor fails to present your offer to the seller on time without telling you previously, you can report them when you find out.
Although it may not expressly violate any law, delay in delivering the offer may contravene some standards. This will depend on the states and the association that the realtor belongs to. If it violates any established rules, the realtor may be disciplined. What amounts to reasonable timing will depend on the circumstances of each case.
Does Your Offer Timing Affect Chance of Winning the Bid?
If you see a house you like available for listing. It’s easy to make an offer for you quickly. However, real estate isn’t first-come, first-served.
You’re the first to submit an offer doesn’t mean you’ll get the property. But it does show the seller that you’re serious. While the seller will consider multiple offers, submitting an early offer allows you to get a quick response from the seller.
This is why the realtor submitting the offer as soon as possible is important. If your offer isn’t good enough, you can quickly move on in your search instead of waiting endlessly to have your hopes dashed later.
When sending an offer for the house, you’re likely hoping that you get it. But if you won’t, a fast response would at least be better. Tell the realtor this and emphasize the need for a fast response. Most realtors will inform you when there’ll be delays, such as waiting for other offers.