It’s 2021 and it’s a crazy market around the country. Tennessee is really seeing an influx of buyers at an astounding rate. According to one study, we have more U-Haul transports coming “one way” to our state than any other in the contiguous United States. WHOA!
That being said, we have some unique issues. Brokers have expressed concerns for their sellers who receive “multiple” and “blind” offers. Typically these offers come in with a delay in providing the earnest money. During that time, the potential buyer makes their way to the state to view the property, and after seeing several, which they have also offered on, cancels on all but the one they want to close on. This holds the properties hostage for those days. In the “multiple” market scenario, the buyer’s agents are angry at not hearing back during the “time is of the essence” period.
Many of you have had great experiences, with no issues, closing properties and handing over the keys to a buyer, who will personally see their property for the first time post-close. Others are having situations that cause the sellers frustration. Unfortunately, this is the temperature of the market at this time, and there is not a “fits all” answer or procedure that works for everyone
Although the association has no authority to intervene in contractual agreements between those principals, you might employ some best practices to protect you and your seller.
First, at the advice and discretion of your broker, provide a document explaining how the “Blind” and “Multiple Offer” scenarios work. Use that as a tool to educate the seller so they can make a reasonable and knowledgeable decision.
Second, prepare your seller with options. If they like one of the “blind” offers, remind them of the option to move up that earnest money deadline. Talk about these before the onslaught of offers starts rolling in, so they are not overwhelmed in the “Multiple” offer grouping.
Third, keep thorough records as the offers arrive. Log them into a system that you can keep track of so as not to subject yourself to potential violations under TREC, MLS, or Ethics. Remember, telling another agent you were too busy to get back to them isn’t an acceptable reason.
Lastly, if you are the buyer’s agent, please be considerate and educate your buyers. We’ve all been there. Buyers are desperate to get an offer accepted with such a low inventory, but being honest about intent is not merely “the right thing to do,” it prevents any allegations of fraud, which is intentional deception to secure unfair or unlawful gain. The purpose of fraud may be monetary gain or other benefits.
It’s the best of times in real estate with properties flying off the proverbial shelves; it’s the worst of times in real estate for buyers competing with extremely low inventory. You all are keeping the economy humming and doing great things for private property owners. Treat each other well, as you are all doing the same work for your clients. Be courteous to the consumers who may be confused in the changing market, and everyone will benefit with success.