And what we’re going to talk about here is listing agents how to avoid a free option period, and to give us an overview. Avoid a free option period
So we’re in a crazy market right now where we’re seeing multiple offers again. And, you know, going through that we have been for the last several years. But something new that we’re starting to see a new trend is now we’re putting homes and coming soon. And you can’t show the homes and you can still receive offers that their blind offers.
OK, so if you get an offer, you receive an offer and coming soon and you accept this offer, there’s a few things you need to be careful of. We talked yesterday. We have agent meetings that we discuss this with all of our agents yesterday. But you need to be careful. You need to if you do receive an offer coming soon, you need to fully explain to your seller what risks are associated with that, what they could be missing out on to.
Are they truly getting their highest and best price in turn and best terms on their property if they’re limiting their exposure? You know, sometimes you might have a seller who’s, you know, a little nervous because of covid and really don’t doesn’t want 50 people coming through their home. And I understand that. Or they have a family and animals and showings could be kind of difficult.
So I see where there could be a situation where, you know, they want to accept an offer during that, coming soon before going live to to the public. So let’s remember when it is in the coming soon status that is an internal to our two realtors only through our MLS. It is not syndicated out to all the other third party sites. You can publicly market it because it’s considered MLS.
However, if it’s not being syndicated, you might be missing some people, correct? Yeah. So in the event what I want to get across is in the event that your seller says, you know what, I just got this great offer. I know they haven’t seen the property, but I want to accept it. OK, great.
So when you’re going through the contract and accepting it, a couple of things you need to think about. You know, if I were in and this is just me and something for y’all to think about, if I were going to accept an offer, which I think is good, it should have not only the price with the best terms, which I would view as me not having to pay anything. So buyer paying title, policy survey, warranty, everything.
Right. And no option, period.
How about that we have seen that, yes, we have no option, period, which means for all your kind of repairs, while they still can get an inspection if they want, but they’re kind of waiving their right to terminate the contract under the option, period.
One other thing is you want to make sure their financing is legit.
Ok, so you need to review their financing and fully understand their financing. The thing that could really cause an issue here is we’re going to pull up right now and share on the screen is a seller’s disclosure. OK, so you as the listing agent, OK, in the coming soon, you should have all of your assets from your seller, your seller’s disclosures, all disclosures, your surveys, all of your assets.
OK, but what you want to make sure of is this. So if someone doesn’t have an option, period, and you accept this offer, if number two is checked, that the buyer has not received the seller’s disclosure and it doesn’t matter if you’ve had it in MLS or if you emailed it to them, it doesn’t matter if they check that they have not received the seller’s disclosure notice and you’re your seller signs off on it and it becomes executed because that’s marked. They get a free option, period, once you deliver or a free option, period, once you deliver the seller’s disclosure to them all. So just, you know, there’s lots of outs in the contract.
So it’s guaranteed seven days. Is that what that is?
Seven days after receipt of the seller’s disclosure? Wow. So, you know, I can see where people may intentionally or unintentionally, you know, check this box and that be an issue. So just please be careful when and before. And this should be a standard practice. Regardless if you have a seller’s disclosure completed and it’s in MLS and you have it before you accept any offer. Make sure that this is checked correctly so we shouldn’t accept any contract.
Would seven be too checked because we have every single one before we go live? Exactly. All right.
So, Stacey, that is a given. Any time we’re listing agents and we’re accepting a contract or negotiating a contract, B one should be selected.
Never be, too. Always be one guys that never be very good at it yet.
No, that’s OK. Yes. All right. Thanks. Yeah, that makes sense. So, Stacey, it is now illegal to accept a contract without legal, I don’t know, legal eagle.
Maybe you lamingtons for us. We shouldn’t do it. There’s no reason to.
There’s not much to that side. That’s the big takeaway. Maybe I didn’t get your client free, your buyer free.
So the exact opposite is. Yeah. So like, bam, switch it around and let’s say that you have the buyer.
Now explain that one.
Check be to see if you have a buyer, then you check B2 and you automatically get seven days.
If they haven’t provided it, if they’ve provided it, then no. But if they have it, which I would say you guys know that during coming soon, a lot of the assets are not done. I’ve asked for them and coming soon and oh my sellers still working on it. I hear that a lot.
So I’m just a little trick.
Stacey’s asking what if we already have an executed one Beaubois and executed one would be too checked. Oh boy. Then please let Sean to know what the heck. Please inform the. Actually that is interesting. Do we have one executed that does not have an option period.
Huh. That’s the thing. OK, if not then or if as soon as it’s delivered.
If it’s see what she says. She didn’t say any more details. So we can talk after this. OK.
That’s a good point. Yeah, so I think everyone understands the concept now, and we want to make sure that we either avoid it or get it in that situation on the other side, sometimes when the parties aren’t all that knowledgeable. Right. And you guys are full time professionals.
You know, that contract and this is why, right, there’s all these little things within the contract that happen as Stacey, they happen all the time. So, you know, we just want to make sure that you guys are prepared for good if we have any first time watchers joining us right now.
Please, chat in your name, the whole idea is to create a routine. Yes, I know. I didn’t.
I know a person right now watching and I’m going to wait for him to chat in for we continue. Well, there is a 20 second delay, so let’s not worry about waiting all that long and let’s end this topic here, right.