Selling a House
What Is An Escalation Clause?
An escalation clause ensures that you are still in the running to purchase a house even if someone makes a higher offer than your original offer.
How Real Estate Offer Management Systems Work
Just put your home in the MLS, and watch the offers roll in, right? If you're lucky. And that's when you'll need a real estaet offer management system to ...
Madison Clifton
Feb 6, 2019
What is a Real Estate Offer Management System?
When you list a home for sale, the first thing that usually comes to mind is figuring out how quickly to quickly find a buyer. But, what happens when you find that buyer? What does that process look like, and how will it be managed. When a buyer submits an offer on your home, the offer will have an expiration date. How do you ensure you’ll receive that offer quickly? And if there are multiple offers – which is common in a seller’s market – how do you deal with them? This is where a real estate offer management system comes in.
A real estate offer management system delivers offers on your home to you in real-time, it allows you to organize the offers, compare and manage multiple offers, and respond to everyone – all within one application. It allows the home seller to control process.
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Streamline the Offer Process
How do you receive offers on your home? Ask an agent, or anyone, and you will received a mixed bag of responses. One thing is for sure, the offer is usually presented by a buyer, or buyer’s agent. From there, if real estate agents are involved, the offer is typically delivered by email from the buyer agent to the listing agent. Then, the listing agent typically emails it to the sellers. Yes, that’s right… an email chain.
This way of doing things has worked in the past, but it’s also caused a lot of problems which can lead to:
- Missed deadlines – if the agent isn’t immediately available to forward the offer
- Communication follies – if anyone forwards something in an email they shouldn’t
- Privacy follies – if any of the agents forward an email with their clients’ info in it
- Code of Ethics violations – (see REALTOR® Compliance below)
Using an offer management system helps solve these problems, and puts the home seller in control. Through platforms like Transactly, you’re provided a unique link for your listing, where you direct any interested party to submit an offer. From there, you’ll be notified in real-time, and can manage the offer and any others – comparing and contrasting them – from within on application. An application that’s accessible by phone, tablet, laptop, or PC.
Offers Delivered in Real-time
Once a buyer or buyers agent submits an offer through an offer management system, everyone is notified immediately:
- Listing agent receives an email and text message (no more having to manually forward emails)
- The sellers receive an email and text message (no missing out on emails because the agent is coaching their kid’s soccer game)
- The buyer agent receives confirmation via email or text that the offer has been delivered/viewed (helping with REALTOR® compliance requirements to providing written confirmations, SOP 1-7).
Multiple Offer Situations
Multiple offer situations have been a common theme for real estate in high-demand, low-inventory neighborhoods across the US. Without a system to manage these offers, sellers are left with sorting through emails, printing out contracts, and creating their own comparison charts to make a decision. Even worse, they (and their agent) have to manually communicate with each one of those parties individually through email.
Systems like Transactly allow sellers and agents to view all offers at-a-glance, send mass-announcements to all interested parties, such as highest and best requests. Traditionally, only institutional real estate investors used offer management systems to help manage their real estate listings, but now we’re seeing traditional agents and home sellers take advantage of the technology. Again, it puts the home seller and listing agent in control of the process.
REALTOR® Compliance
We’ve heard arguments from agents who don’t like the real-time delivery of offers to their sellers, because they like to review and add their own thoughts and opinions before presenting it. From a salesperson’s perspective, I get it. Presenting an offer is a vital point in this process. However, going about it that way presents conflicts with the REALTOR® Code of Ethics.
The REALTOR® Code of Ethics states “REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.” (SOP 1-6)
Some definitions from Dictionary.com:
- Quickly – at a fast speed; rapidly; very soon.
- Objectively – not influenced by personal feelings, interpretations, or prejudice; based on facts; unbiased:
So, when a listing agent takes their time to thoroughly review an offer and add their thoughts and opinions in a presentation to their seller clients, is it truly “as objectively and as quickly as possible”? Probably not.
The top real estate agents we’ve found and interviewed to become Transactly partner agents, have a ‘nothing to hide’ attitude, are 100% transparent, and are more focused on ensuring their clients interests are above their own. Sure, they’re using real estate offer management systems not just to deliver that transparency and access to their client. But, they’re also using the technology to build trust and win over new clients.
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Selling a home?
If you’re thinking about selling a home, you may want to consider using an offer management offer system. Will it help you find a buyer? No. But, it will provide you with an advantage during one of the most crucial points of selling your home – receiving and negotiating offers.
Find a top real estate agent using a an offer management system on Transactly by clicking here.