Agent Sam has a listing -- listed for $159,000 -- MLS data says that owner will do owner financing and need a "quick sale".
Agent Bob has a buyer client who offers $155,000 with the owner doing the financing.
Sam talks with his seller and they counter -- Bob calls his buyer client and relays the counter -- buyer verbally accepts the offer.
Seller does not have the counter in writing because the seller has no fax and no scanner and lives too far for listing agent to go and get initials.
Sam suggests to Bob that he get his buyer client to sign and then he will get the seller to sign.
Bob gets with his buyer and the buyer initials the changes and leaves thinking they have bought a house.
Before Sam can get with the seller, he gets a phone call from the seller saying that he remembers speaking with this buyer before the property was listed and that this is the person he wanted to exclude from the listing agreement.
The listing agreement had no exclusions. But then, the seller also tells Sam to change the MLS -- he no longer is willing to do owner financing and no longer desperate for a quick sale.
Bob is quite taken back and so is his buyer client. So, the deal is over.
What is the moral of this story?
1) Do not ever counter contracts verbally -- each counter should be in writing and property initialed and dated.
2) If there are exclusions, they must in writing in the listing agreement and noted in the MLS.
3) If the seller lives too far away for you to get to them at contract time, then you need to be sure that they have some way to communicate with you in writing (fax, or scanner for emailing)
What do I think about this scenario?
Sounds like Sam has a fickle seller who has put Sam and his real estate company in a bad light -- perhaps Sam should just let the listing go.
What do you think? Please comment below.
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This gets into who is the procuring cause. While agent sam may be out of lucvk ironically the buyers agent may have a claim especially if he has a buyers agreement
What do I think? I think this is a terrible way to do business. I'm sorry for the buyer, but there was never a deal in the first place, no binding contract. Time to move on ... a little more carefully. P.S. Nice to have you back!
Thank you for the very interesting blog, I hope I am able to leave a comment now!
If the seller is too far away for anything and no fax or computer for scan and e-mail, the agent should not have the listing.
Oh. I forgot. If it ain't in writing, it didn't happen.
I'd go (it's never too far) and get initials or signatures before I pass along ANY counter. I don't do "verbal"
I think the agent should have hopped into his car to get those initials. I'm with Tammy. It's never too far. If it is, then I'm with Lenn!
And it's so nice to have our comments back! I'm going back to check on some of the older stuff!
I agree with Tammy also...no verbals get in your car and drive, drive, drive if needed.
Easy to say get it writing and you should, but I, if the seller's agent, would discuss -- in a nice way -- the issues of honesty and full disclosure with the seller. Asking, what kind of compensation he plans to award to the seller's agent would be a starter.
Liz - Good food for thought. It isn't uncommon for us to counter verbally in my area, but we get it in writing as quickly as possible. Without initials and/or signatures, you don't have anything!
Everything should be in writing. No signatures - no nothing.
I have a back up fax machine that I have been known to let sellers who don't have one keep during the listing period for situations just like this one.
Charlie ---- thanks for stopping by --buyer's agent does have a buyer's agreement, but the offer was no a full price offer.
Cynthia ---- we are on the same page with this one -- thanks for stopping by.
Dan ---- yes, you did leave a comment -- thanks for stopping by.
Lenn ---- thanks for stopping by --- you and I are definitely on the same page.
Tammy ---- Oh, I love those words "I don't do verbal" --- I preach this all the time and what happens, I have agent-owners who do verbal -- Ugh!
Pat ---- so nice to see you again -- thanks for stopping by -- I agree with you re: Tammy and Lenn.
Rebecca ---- thanks for stopping by -- I agree also -- if they live too far, as Lenn says -- no listing.
Janice ---- thanks for stopping by -- you are so on target -- honesty and full disclosure with your agent is critical.
Judy --- verbal countering is OK as long as the buyer and the seller are made aware that it means "nothing". Thanks for stopping by.
Irene ---- thanks for stopping by -- tell us how your really feel - LOL --
Todd ---- Now, that is brilliant --thanks for stopping by, my friend.
It would not be acceptable here to have a client that can't receive documents by fax or e-mail. I like Todd's idea of providing a fax to sellers while their house is on the market.