Tuesday, November 9, 2010

So if This Happened on Tuesday, What would YOU Do on Wednesday?

Not so long ago, I found my managing broker skills being put to the ultimate test. One of our branch brokers called with this "situation" or was it just a "unique circumstance?"  If you think you have seen, or lived thru all the real estate scenarios, follow along!

 9:00 am 
Coffee made and computers are up.  Branch manager calls managing broker (me) to describe Tuesday's "situation."
 Here are the "Facts:"
  • Our company has a property listed.    
  • Company Z, brings an offer to purchase this listing. 
  • The offer written by the buyer's mom, contains a contingency that her son must approve the deal.   OK, this is strange and I would hope my associates would not write an offer for someone else without written authority (and maybe they had that)
  • In the spirit of "presenting all offers," our Realtor diligently worked with the seller to meet all time lines (inconvenience is a mild term, when you consider the associate from Company Z only allowed a couple of hours for response). 
  • The offer is negotiated and finally accepted by the seller--subject to son's approval (No problem, it is a great home and he has made a superb deal on this home).
What Happens Next is UNBELIEVABLE!
Company Z's associate calls with the following message "We made an offer on another house at the same time we made the offer to you.  They got back with us before you did so the buyer is selecting the other house.  Our deal with you is dead." 
Yeah, you read it correctly.  The buyer withdrew because another offer he had written was accepted earlier(the techanicality of course is the son's approval).
Yes, I had  Questions for the Managing Broker Company Z
To my amazement, the broker for Company Z defended the actions of his associate.  He relied on the contingency referring to the military son's approval.  There were no apologies, no real explanation why it was never disclosed the buyer (whoever that is) made multiple offers on multiple properties simultaneously, when he only intended to buy one.  I was astounded at the lack of courtesy extended professionally.  Yes, from his point of view, the customer got the house he wanted at the price he wanted, but at what cost to others?
Well, Here's My Advice to My Branch  Broker 
Without a doubt, our seller is the loser here.  We all know that deals this flaky, seldom close. In reality, with the advantage of hindsight, the seller probably never had a "deal."   Unfortunately, he had  been on an unnecessary ride, on the ultimate emotional roller coaster!  My advice was to concentrate on the seller.  He needed his house sold.  Figure out what it would take and go there!  Keep in mind that selling his house is key, what has happened is unfortunate and over
LASTLY
I suggested to my Broker that "we sleep on it." .  I guess, the way this played out it is more of a moral than legal issue.  I did talk to the Commission and they confirmed that the selling broker's failure to disclose a multiple offer situation was not in line with OK law.  Yes, I also believe a mere bit of professional courtesy could have also been extended and the entire situation avoided!  

 So if this happened to you on Tuesday, what would you do on Wednesday?

There I said it!

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