Resale Decision

[kimberwee]

After much back and forth regarding direct or resale, we pulled the trigger yesterday on a Poly Resale Contract! AND THEY ACCEPTED!! We are so excited to get the contracts going today.

Woohooo!

 

[Cbtexan04]

Yay, congratulations and welcome home!

 

[CarolMN]

Congratulations and good luck with ROFR!

 

[TonyaG83]

Just curious -- how long did it take the seller to accept? Made my first offer on Friday and haven't heard anything yet. I'm impatient

 

[disneynutz]

Just curious -- how long did it take the seller to accept? Made my first offer on Friday and haven't heard anything yet. I'm impatient

Buyers are in a hurry to buy, sellers aren't in a rush to sell. Something to do with not wanting to let go. That's why hoarders horde, boats see more dock time than use time and people with storage units pay to store junk for years.

Bill

 

[njprb]

What does your resale broker say about this? On my 2 offers this month, my broker got right on it and heard back within a couple hours.

 

[TonyaG83]

What does your resale broker say about this? On my 2 offers this month, my broker got right on it and heard back within a couple hours.

Just received an email saying the seller received a better offer this AM. Good for them, but I'm curious ... does this not work like other real estate transactions where the sellers can only work with one offer at a time? Should they not formally reject previous offers before moving on to others? Or is the resale process more of a 'bidding war' situation?

 

[KAT4DISNEY]

Just received an email saying the seller received a better offer this AM. Good for them, but I'm curious ... does this not work like other real estate transactions where the sellers can only work with one offer at a time? Should they not formally reject previous offers before moving on to others? Or is the resale process more of a 'bidding war' situation?

Where I live there is no such requirement on real estate transactions. A buyer may search for the highest offer. Once you have a signed agreement that's something else but before that there is no agreement to honor.

 

[supersnoop]

Just curious -- how long did it take the seller to accept? Made my first offer on Friday and haven't heard anything yet. I'm impatient

I made an offer on Tuesday and heard back within 5 minutes. Tell your broker that you're rescinding your offer if you don't hear back by X:XX tomorrow.

 

[ELMC]

Just received an email saying the seller received a better offer this AM. Good for them, but I'm curious ... does this not work like other real estate transactions where the sellers can only work with one offer at a time? Should they not formally reject previous offers before moving on to others? Or is the resale process more of a 'bidding war' situation?

Brokers are required by law to present all offers. If you offer less than full price you should know that your deal, even if initially accepted, is still at risk until contracts are signed. Also, different brokers treat full price offers differently. I've presented a full priced offer within minutes of the listing going live in the past. Some brokers will immediately change the listing to "sale pending" while others will contact the seller and continue to field offers until they hear back. Furthermore, in the past when competition was fierce, I would get outbid and not even hear back from the broker to give me the opportunity to up my offer. It's a difficult market to navigate at times, but just know that until you have a SIGNED contract, nothing is for certain, and not even then...

The key is to stay patient and not get emotionally attached to any contract until you have cleared ROFR and the points are loaded into your account. Then it's time to call it yours.

 

[kimberwee]

Just curious -- how long did it take the seller to accept? Made my first offer on Friday and haven't heard anything yet. I'm impatient

We heard back about 6 hours later. We were just a bit lower than asking, so I assume they contemplated for a little bit.

 

[MrInfinity]

Just received an email saying the seller received a better offer this AM. Good for them, but I'm curious ... does this not work like other real estate transactions where the sellers can only work with one offer at a time? Should they not formally reject previous offers before moving on to others? Or is the resale process more of a 'bidding war' situation?

Curious where you live such that sellers must reject one offer before moving on to another... Bidding and competition has been a prominent part of every property transaction we've done. Buyers can put limits in their offers like "expires in 48 hours" to try to create some pressure and not let a seller sit on their offer for 3-4 days to see what else comes in... but really, these tend to not be enforced. If your seller accepts in 3 days, you're still going to move forward and not hold them to that clause.

If I was you I would not get into a bidding war or come up on your price to compete with another buyer you don't know even exists. Really, that seller could just be telling their agent "tell them I have another offer". You just don't know so it comes down to paying what you want to pay and sticking to your guns. Move on to another seller. If after several weeks of looking you find you're unable to stick a deal, reconsider your target price. If time is on your side, this works as a buyer.

 

[mustinjourney]

Brokers are required by law to present all offers. If you offer less than full price you should know that your deal, even if initially accepted, is still at risk until contracts are signed. Also, different brokers treat full price offers differently. I've presented a full priced offer within minutes of the listing going live in the past. Some brokers will immediately change the listing to "sale pending" while others will contact the seller and continue to field offers until they hear back. Furthermore, in the past when competition was fierce, I would get outbid and not even hear back from the broker to give me the opportunity to up my offer. It's a difficult market to navigate at times, but just know that until you have a SIGNED contract, nothing is for certain, and not even then...

The key is to stay patient and not get emotionally attached to any contract until you have cleared ROFR and the points are loaded into your account. Then it's time to call it yours.

If I've learned anything over the last year of reading these boards, NOTHING is guaranteed until the points are in your account.

 

[Dean]

Just received an email saying the seller received a better offer this AM. Good for them, but I'm curious ... does this not work like other real estate transactions where the sellers can only work with one offer at a time? Should they not formally reject previous offers before moving on to others? Or is the resale process more of a 'bidding war' situation?

I'm not aware of anything situation where a seller is locked in to one offer at a time. Once you have a written contract the seller could still back out. There would be technical risks but in reality little to none in most cases. The buyer can back out up till 10 days after they have a signed contract and in some cases, up to a year later and after closing.

 

[ELMC]

I'm not aware of anything situation where a seller is locked in to one offer at a time. Once you have a written contract the seller could still back out. There would be technical risks but in reality little to none in most cases. The buyer can back out up till 10 days after they have a signed contract and in some cases, up to a year later and after closing.

Dean, I'd be interested to hear about a situation in which a buyer can back out a year after closing as I've never heard that before. Can you please share some details? Thanks.

 

[Dean]

Dean, I'd be interested to hear about a situation in which a buyer can back out a year after closing as I've never heard that before. Can you please share some details? Thanks.

FL statute 721. There are certain provisions that must be met. The 10 day cancelation period doesn't start until certain conditions have been met including delivery of the POS and a sign contract. For resale, there are certain requirements for the contract including the notification of the 10 day cancelation period. If those are not met, then term can be 1 YR. I don't know anyone that's ever reversed this process based on this requirement and actually making it happen could certainly be problematic.

(3) If a resale purchase agreement utilized by a person described in subsection (1) does not comply with the provisions of subsection (2), the contract shall be voidable at the option of the purchaser for a period of 1 year after the date of closing.

This right of cancellation may not be waived by any purchaser or by any other person on behalf of the purchaser. Furthermore, no closing may occur until the cancellation period of the timeshare purchaser has expired. Any attempt to obtain a waiver of the cancellation right of the timeshare purchaser, or to hold a closing prior to the expiration of the cancellation period, is unlawful and such closing is voidable at the option of the purchaser for a period of 1 year after the expiration of the cancellation period. However, nothing in this section precludes the execution of documents in advance of closing for delivery after expiration of the cancellation period.

 

[TonyaG83]

Curious where you live such that sellers must reject one offer before moving on to another... Bidding and competition has been a prominent part of every property transaction we've done. Buyers can put limits in their offers like "expires in 48 hours" to try to create some pressure and not let a seller sit on their offer for 3-4 days to see what else comes in... but really, these tend to not be enforced. If your seller accepts in 3 days, you're still going to move forward and not hold them to that clause.

If I was you I would not get into a bidding war or come up on your price to compete with another buyer you don't know even exists. Really, that seller could just be telling their agent "tell them I have another offer". You just don't know so it comes down to paying what you want to pay and sticking to your guns. Move on to another seller. If after several weeks of looking you find you're unable to stick a deal, reconsider your target price. If time is on your side, this works as a buyer.

I live in Canada; Toronto-area, and our Real Estate market is out of control. There are always multiple offers on properties, and the reality is that most places go for over-asking. In the cases of multiple offers, the seller can only work with one offer at a time. There are a lot of ways to work the system (agent representing both seller and buyer), but there has to be a formal response made to all offers. Sellers must, once presented with the offer, choose to accept, reject, or counter. They can't move on to the next offer until they formally reject previous ones, BUT they can choose which offer to look at first.

 

[JETSDAD]

In Ontario you do not even have any legal requirement to respond to any offers received let alone in any sort of order. In the case of multiple offers many different strategies may be used. Some will just accept the best offer while others will go through rounds of narrowing it down and allowing the top offers to further improve their offer. What you can't do is to counter to multiple buyers at one time or else you could be in a position of selling the same home to multiple buyers if they were to all accept your counter.

 

[TonyaG83]

Hmm, that's definitely not how I remember it when selling my dad's estate. Then again, it was my only experience selling a home, and then repurchasing. Both in multiple offer situations. I just remember working with one offer at a time in terms of countering, as you mentioned, and then declining those which did not meet. Makes sense about not countering/selling to multiple buyers.

I think I need to research this whole process a bit more before I attempt to make another offer, not that any of the good contracts sit for long!

 

[Dean]

Hmm, that's definitely not how I remember it when selling my dad's estate. Then again, it was my only experience selling a home, and then repurchasing. Both in multiple offer situations. I just remember working with one offer at a time in terms of countering, as you mentioned, and then declining those which did not meet. Makes sense about not countering/selling to multiple buyers.

I think I need to research this whole process a bit more before I attempt to make another offer, not that any of the good contracts sit for long!

It wouldn't make any sense to have this requirement related to offers but it does make sense from a practical standpoint for an owner (in conjunction with a RE agent) to do so to a degree. Certainly once you have a contract then obviously the situation changes. ASAMOF, in many situations it'd actually be illegal (and often foolish) not to present all offers. In most states (all I have any knowledge of) an agent has to present even low ball offers within certain rules. Generally the only reason they wouldn't be required to is if they had WRITTEN instructions not to, say under a certain price.