Are Your Offers Getting Presented?

It’s hard to tell if your offer has really been presented to the seller, especially in these high-volume multiple offer scenarios. Occasionally, a Balboa agent will tell me they suspect the listing agent has not presented their offer to the seller.
When this happens, we typically request the “rejection of offer” on page 10 of 10 of the RPA to be initiated. Usually listing agents will comply, but what happens when they don’t?
Below is a list of important factors to know about presenting offers. I will use “broker” to encompass both the broker and agent because the rules apply to both, regardless of whether it’s two people or one.
  • A listing broker has the legal obligation as a fiduciary to present all offers to the seller.
  • The seller is not legally obligated to respond to any offers. This means that you could send an offer to a listing agent and there is no requirement for the seller to sign a rejection or even respond.
  • A selling broker (buyer’s broker) can request in writing that the listing broker affirm in writing the offer has been presented to the seller or the seller has refused (in writing) to review any more offers. This is not statutory, it’s just NAR/CAR code of conduct.
  • If a buyer’s broker makes a reasonable attempt to make contact, and is completely ignored by the listing broker for at least one day, the buyer’s broker can inform the listing broker in writing that they are left with no choice but to contact the seller directly and proceed. Please make sure you contact me before you do this.
If you are in contact with the listing agent, and they tell you your offer was rejected, you can always send a CAR letter called the “Demand That Offer Be Presented,” found in Zipforms under the CAR sample letters category.
This will likely get you a written rejection from the listing agent, which you can pass to your buyer, but that’s about it.
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Company Update April 2, 2021

This is the clearest example of a seller’s market I have ever seen.
Inventory is a fraction of what was already “low inventory.” This means low supply.
Low rates mean more affordable mortgages, which increases demand.
Low supply and high demand push the prices up higher.
Since these supply and demand factors are floating around historic levels, we have the perfect mix of ingredients for this seller’s market.
Make sure that your buyers have a way out if they are aggressively reducing or waiving any contingencies.
Make sure that your seller is protected. Namely, if the appraisal comes in low.
One solution is to add verbiage to the effect of “If the appraised value is less than the sales price then the buyer shall pay the difference in cash.” Please note, “cash” does not mean bills in a briefcase. It refers to cash the same way as an all cash purchase.
MLS Fines
I used to be a fan of CRMLS, the nation’s largest by member size. Mainly because they led the campaign of data shares which united small MLS’s so that agents and listings can have a broader reach.  This is how we can now go to one single MLS and see listings in LA, OC, SD, and Riverside. It wasn’t like that in the past.
There is a tradeoff, which is that it effectively gives a single company monopoly power.
I won’t go deep here, but I have two podcast episodes about monopolies and the MLS.
I will link at the bottom.
Specifically, I’m referring to how often agents get unreasonably high fines with no alternative but   a futile appeal process.
Here are some tips to avoid getting penalized:
  • Enter your listing into the MLS the day the RLA is signed.
  • Not ready to go live? Use “Coming Soon’ Status
  • <Private>
  • Change status from active to pending; or pending to closed; the same day of the event.
  • <Private>
  • Only use pictures in which you or the seller own or are licensed. Of course, this includes professional photographers because they are hired to create the images for you.
The tips above will avoid 90%+ of the infractions I keep seeing agents getting.
In an effort to keep these emails in easily digestible sizes I will end here and send another update soon.
If you have a topic you want me to address in the next email please feel welcome to reply.
Thanks for reading.
Podcast links
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