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Tag: best offer

Summary:

Most multi offer situations don’t often extend by more than three days (to get all offers in); and most cases 48 hours is sufficient.

Yet there is no law or ruling on time limitations. This is due to the amount of variables that can extend the situation.

For example here are the four most common reasons:

1)    Access restrictions: some properties which are tenanted may take some time for interested to view.

2)    All interested parties needing to be contacted. This may take the agent some time when many buyers travel for work, live overseas or other reasons that make them not be able to respond quickly.

3)    Buyers have the right to seek for legal advice before signing any agreements and this may take some time too.

4)    Vendor instruction. For example vendors may want all open homes to be completed before deciding on an offer.

If you feel you are being taken advantage of make sure you bring up your concerns and make sure the agent knows that you know your rights. You can withdraw your offer at any time if the situation is not handled to your satisfaction.

TRANSCRIPTION:

Good day, Andrew Murray here from The Apartment Specialists, talking about multi offers and how much time do you have to get your offer in. Now, most cases, you’ll have 48 hours to get a multi offer in. That’s pretty much what happens most of the time. If I look across, say, the last 100 multi offers I’ve been involved in, most of them, all the offers were in within three days.

But there’s actually no law, or ruling, or limitation around how long a multi offer can last for. For example, it can be dragged out for a very long period, but it can’t be dragged out on purpose. Now, the reason for this is– there’s four main reasons why a multi offer situation gets dragged out. One will be access availability, i.e. the tenants would only allow access on a Saturday, so the other person who wants to put in an offer can only do it next Saturday – that obviously complicates things.

Number two, all interested parties needing to be contacted. You may have had a person who’s really interested in putting an offer in, they were going to put an offer in as soon as they touched down after landing back in Beijing, and they’re in midair, in mid-flight, so obviously we can’t get in contact with them until that. We know that person was interested, and we have to give them by law, as they showed interest, the ability to put in an offer.

Another one, purchasers needing to seek legal advice. As a real estate agent, you can’t put somebody under undue pressure. Yes, a multi offer situation is pressure, but that is being formed by the market. You can’t actually do that on purpose as an agent. So if an owner wants to seek legal advice before putting in that offer, you’ve got to allow them to do so. Vendor instruction. The vendor may say, “Look, okay, there’s a multi offer situation happening, but I want to wait until this week’s open homes because it’s only been up three days,” or whatever the situation. So the vendor instruction is the fourth one.

Having said this, if you feel that an agent is taking advantage of the multi offer situation, make sure you ring them and make them know you’re aware that you can legally withdraw your offer at any time, and this will really get the agent moving, because they’ll lose you as a client, and they’ll obviously put that– they’ll inform the vendor. If you do feel taken advantage of, withdraw the offer.

Anyway, Andrew Murray, Apartment Specialists. Hope it helped.

If you have any questions, flick me an email at andrew@apartmentspecialists.co.nz or call +6421 424 892 and I’ll be happy to answer your queries.

Cheers.

195 multi offers does the owner have to accept the best offer

Apartment Specialists Podcast No: 195

Summary:

When you’re a seller and you’re facing multi-offers from several buyers, how do you choose the best offer? What are the things you need to consider first before you choose the best buyer? Get all the answers from this podcast, as Andrew explains the essential steps you need to take as a seller.

Does the owner have to accept the best offer?

No, the best offer may not be what the vendor thinks is acceptable.

Maybe the vendor wants more. Or the other parts of the agreement aren’t to their liking like the settlement date or the conditions.

For example I remember working really hard for one of my owners. They were an elderly couple. I kept on going back and forth getting higher prices …to the point it was so far above market value it wasn’t funny….I couldn’t understand it.

Until I asked them the question…

What would you change about this agreement.

They told me due to personal reasons they couldn’t settle for three months.

I had the property sold within 2 days for a great price and a longer settlement.

So to re illiterate the topic of this post. The owner doesn’t have to accept the best offer.

The best offer is about perspective and individual situations.

If you have any questions, flick me an email at andrew@apartmentspecialists.co.nz or call +6421 424 892 and I’ll be happy to answer your queries.

TRANSCRIPTION:

Andrew Murray, from Apartment Specialists, talking about multi offers, and does the owner have to accept the best offer in a multi offer? In the example, the answer is no. The best offer may not be to the vendor’s liking, or there maybe be, often, conditions that the vendor wants to change. For example settlement dates, or certain conditions they may not want in the agreement.

The vendor has the right to choose which offer they want to negotiate with. That’s why, when you sign a multi offer form, it says “This may or may not be the last time or last chance, you get to negotiate on this property, and you understand this.” Because there is a chance that the owner may come back and choose your offer, or choose you, to negotiate with.

Now I’ll give an example where price is just not always the factor. I was in my younger years, and I was running back and forward, like a headless chicken, coming back. I was working for this elderly couple, and I was getting them higher price after higher price, to the point where it was so far above market I couldn’t believe it. I got these amazing prices, and this elderly couple just still said, “We’re turning it down.” And they just said “No, we’re not interested.”

I couldn’t figure it out. I was young so it took me a while, until I asked them a question, I said “Well what would you change about this agreement?” And all they did was, they said “Well we can’t settle for three months.” And I was like “Oh, okay. So when can you settle?” And they said, it involved them, obviously, because of certain family members having to live with them.

What ended up happening was, we changed the settlement date and I had it sold in two days. So always remember, it’s not always the price. There’s always a lot going on. But as, the topic of this podcast was “Does the owner have to accept the best offer?” That’s all about perspective, and the answer is no.

If you have any questions, flick me an email at andrew@apartmentspecialists.co.nz or call +6421 424 892 and I’ll be happy to answer your queries.

Cheers, bye.

multi offers why do you have to sign a form

Apartment Specialists Podcast No: 194

Summary:

Every agreement requires consent from both parties to make it binding. With multi offers, buyers are also required to sign a form. Why are you required to do so? Watch the video to find out why. You can also download the form below.

Multi Offers: Why do you have to sign a form?

This is for you. To make sure you understand the implications of your offer and also to protect the real estate agent.

It is to make sure as a purchaser you have a clear understanding that this is your last chance to negotiate unless on the vendor’s terms.

If you were involved in a multi offer and weren’t asked to sign one of these forms the real estate agent is not doing their job.

Below is an example of what one of these forms should contain.

[su_document url=”http://apartmentspecialists.co.nz/wp-content/uploads/2015/07/20.-Multi-Offer-Form.pdf” width=”700″ height=”700″]

Download Here: Multi Offer Form

If you have any questions, flick me an email at andrew@apartmentspecialists.co.nz or call +6421 424 892 and I’ll be happy to answer your queries.

TRANSCRIPTION:

Good day, Andrew Murray here from the Apartment Specialists, talking about multi offers and why do have these forms you have to sign? Now, these forms have been designed for you. There’s an example below, for you to have a look at. Now, as to make sure that as a purchaser, you understand that have put your best offer forward, and you’re going to have no further chance to negotiate unless it’s on the vendor’s terms ie they chose your offer to be the one they further negotiate with because they’re not happy with parts of the contract i.e. settlement date, or maybe they still want more money.

So if you’re involved in a multi offer, and you weren’t given one of these forms to sign, that means the real estate agent you were doing business with or working with, didn’t do their job. Effectively, you could put in a complaint. So I’ll put an example in the form below, and what’s actually the contents in that form. If you have any questions, please just send me an email – andrew@apartmentspecialists.co.nz.

Anyway, cheers. Bye.