Next Steps After Seller Receives Offer(s)

In this article, I wanted to go over some basics following the receipt of an offer(s) by a seller(s).

Offer Basics

Responding to an offer is largely a matter of risk vs rewards, 2 competing elements. The more significant you counter the buyer's offer, the greater the chances of the buyer getting cold feet and rejecting your counter with no second chances.

While your agent should provide some useful information about the offer, it's a good idea to read through all of the information contained in any forms from buyers connected to an offer, especially that information which is written into an offer rather than based on a template that all agents using that kind of offer use, rather than exclusively relying on communication with your agent & online articles like this one.

Here is an article I wrote on Hampton Roads offer basics, going over the REIN Standard Purchase Agreement, the most common offer in Hampton Roads with the basics of the information on each page. See also my spreadsheet for competing offer scenarios which goes over ideal elements etc.

If you didn't receive a REIN offer, but instead received a VAR offer, they don't allow publications with their offer without their permission, and it's better to pay more attention to the offer you have in hand than the old version they make public online.

Offer Response Timeliness

The longer you wait to respond, the greater the chances of the buyers having cold feet, but the greater the chances of receiving a 2nd competing offer. It's important to carefully consider one of the biggest decisions of many seller's lives, but it's also possible to self-sabotage your offer by a slow pace.

If the seller has established a deadline, that deadline is expected to be one where buyers shouldn't expect a response until after it in the absence of a competing buyer deadline.

If the buyer has established a deadline, if you don't respond by that deadline, there's a decent chance that you won't get another shot with the buyer.

Here is more information on offer timeliness.

Going over the offer: spreadsheet & discussion

To assist sellers with going over the pros and cons of offers, I've composed a spreadsheet for competing offer scenarios. Even for a solo offer scenario, it should be very helpful and includes a net sheet. For multiple offer scenarios, it's even more helpful. It goes over things like what's the best and worst-case scenarios for offer elements, how important an offer element can be, etc.

It's not a bad idea for sellers to ask questions about offers once received, i.e. via phone call or text, especially if a question would require the listing agent to reach out to the buyer's agent or the buyer's lender about something and the response could take some time. Offer deadlines are typically Tuesday at 7 PM with Adam, In addition, we can discuss offers via screen share on Zoom if desired, via text, or over Zoom at length ideally either:

1. once all are received shortly after an offer seller imposed deadline if we are within the timeframe of an initial seller deadline (sometimes offers are purposefully submitted within 5 minutes of that deadline)

2. prior to a buyer deadline if a buyer includes a deadline in an offer

If you receive a letter to the seller, the law can be tricky, so be sure to know the law before reading them if you decide to read them.

In the event that with this offer or another future offer there are any "love letters" to the seller, it's important to note that while they can provide some got intel, it's also possible to break the law by reading them and then using them to sway the offer if a protected class is involved & that element of the letter influences your decision, and in many (if not most) cases, these letters do include protected classes despite National Association of Realtors' recommendation against even writing them. If you don't want to read them, you don't have to, but I am also supposed to present "all offers." Some agents won't even present letters to the seller along with offers, but I feel like that also could have some liability, though I'm not an attorney. If there's someone of the same religion, you're not supposed to factor that into the equation legally as you consider offers. If someone has a disabled child, that also isn't supposed to legally be a factor in your considerations according to my understanding of fair housing. If someone is the same race, religion, national origin, sexual orientation etc. as you, you're not supposed to give them favoritism. If someone clearly isn't, you're not supposed to show less favoritism towards them either. With any legal opinion though, it's important for me to disclose that as I am not an attorney I cannot give "legal advice." "Virginia's Fair Housing Law makes it illegal to discriminate in residential housing on the basis of race, color, religion, national origin, sex, elderliness, familial status, disability, source of funds, sexual orientation, gender identity, and veteran status."