Mid-December

Happy Friday Red Rock Agents,

Here we are in mid-December and still no wet weather. Makes a person wonder how Santa will make it. Guess we’ll just have to have a little faith.

Good news!

One of our agents let me know all about the fingerprints that is now required with your license renewal. Because of Covid-19 the division had put the program on hold. For more information, please go to the website yupfingerprinting.com. The cost is $20.00, and they give you cards to send into the division. If you already knew this, please act like it's new news just for me.

I have been involved with a few issues about escalation clauses in contracts and some of the problems that are being caused from them. Let’s address the clause itself. Buyers agents are asking listing agents for the entire contract to verify a competing offer. Why? The buyer states in the offer that they will pay $XXXX of dollars for the property over the next highest offer, but only if they must. What? If they tell you what they are willing to pay, why not have them pay it? Let me explain if I can this way, and it is becoming a tactic. Property is listed at $250k offer comes in with an escalation clause attached that says the buyer is willing to go up to $275k. Do you think that the property will meet the appraisal requirements? No of course not. With a low appraisal the buyer is in the position of requiring the seller to reduce the price to meet the appraisal value or bring in more money to close. If it’s an FHA loan often the buyer has no extra funds. If the seller refuses to lower the price the buyer can cancel and retain the earnest money. That is what the appraisal condition states in the REPC. Keep in mind that the buyer’s agent MUST send the valuation to the listing agent as per the contract. (Please only send the value page and it's usually page two of the appraisal. Don’t send the entire appraisal because the listing agent or the seller suddenly becomes the best appraiser in the World and will want to contest all the comps used.) What is to stop a buyer agent from putting any amount in for the most the buyer will pay just so they get the deal? Nothing. So, if they come in with a ridiculous amount that the buyer is willing to pay and it's not cash. Counteroffer, removing the appraisal condition from the contract that will protect the seller some, but not much. It will however send a message to the buyer. So, what about the seller? What rights does he have in all of this? Remember anything in an offer or the contract itself can be modified with an addendum. Does the seller have to release confidential information to another buyer or their agent, like the next highest offer with all the information on it? No, I don’t think so, and this is why I feel that way. The name and the financial information are on that contract for a buyer, is it ethical to just release that to anyone? I don’t think so, due to our fiduciary responsibility of confidentiality to our clients. Work the deal just like any other deal, don’t let the buyer’s agent dictate what the seller must do. Protect your client. For questions call Allen, LOL you can call me as well. This is a touchy subject so let’s get it right the first time. Red Rock Agents are the best in the valley because you’re informed.

Please have a great weekend and be safe out there,

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