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Verbal Offers Aren’t Smart

Unlike most of the US, in Westchester and the surrounding areas of New York real estate contracts are prepared by attorneys only after a process of offers, inspections and due diligence. Other than mortgage, contracts are non contingent. There is not even a deposit of any kind until contracts are signed. It is not at all unusual for an accepted offer to wait 2 weeks for fully executed contracts.

Most of the time, therefore, offers are submitted on company letter head with terms specified and accompanied by a pre approval. The more specificity, the better. Sellers are rightly very reticent to accept any offer without assurance of the buyer’s ability to perform, especially since we are required to disclose an accepted offer per the code of ethics even with nothing signed.

Every so often, I get an offer from an agent over the phone. They say they are buyer agents, but I really don’t see how a verbal offer, without clear terms and a pre approval, sheds the best light on the buyer’s ability to perform. If anything, it makes the agent seem indifferent and the buyer either unforthcoming or uncooperative.

The old rationale that “I don’t want to waste my time writing up an offer if it isn’t going anywhere” is ironic- the best way to make sure an offer goes nowhere is to make a halfhearted, verbal offer with a mystery buyer. If you want to make that sale, you have to do work- it isn’t a waste of time, it is your job.

I wish I had a nickel for every time this has been said in our industry, but it has never been more relevant than now: put it in writing.

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