When the buyers have found the right property, the next step is to prepare and negotiate an offer that will lead to a signed sales contract between the seller and the buyer. The buyer’s broker must prepare a CMA to establish a price for the buyer to offer. Factors to take into consideration include:
- Property condition – Does the property need a lot of repairs?
- Length of time on the market – This indicates the selling pace of the market, the level of inventory, or a potential problem with the property.
- Supply and demand – Essentially, when supply increases and demand remains stable, prices go down; when demand increases and supply remains stable, prices go up.
- Sellers motivation – Is the property in distress, pre-foreclosure, or requiring a short sale?
- Terms and contingencies – The fewer the contingencies, the stronger the offer, making it more attractive to the seller or bank (if property is bank owned or requires bank approval for a short sale).
When buyer brokers are working with two or more clients who are seeking similar properties in the same price range, the buyer’s broker is permitted to show alternative properties to any prospective buyer or tenant.
Specifically, the buyer’s broker does not breach a duty or obligation to the client :
- by showing alternative properties to other prospective buyers or tenants,
- by showing properties in which the client is interested to other prospective buyers or tenants,
- by making or preparing contemporaneous offers or contracts to purchase or lease the same property.
However, brokers must provide written disclosure to all clients for whom the licensee is preparing or making contemporaneous offers or contracts to purchase or lease the same property and shall refer to another designated agent any client that requests such referral.
