Practice Tip for Agents Whose Listing Sold in Multiple Offers
“Whoever has the gold, makes the rules.”
–The Golden Rule
What trumps The Golden Rule (at least temporarily)?
What I’ll call “The House Key Rule”: whomever controls access to an MLS-listed home controls the sale.
That’s particularly relevant in the wake of multiple offers, when the appraiser sent out by the winning bidder’s lender needs access to the home to determine if there’s sufficient collateral to secure the lender’s mortgage.
Or in plain English: is the home worth what the Buyer is paying?
Listing Agent/Gatekeeper
Especially in multiple offers, when the ultimate sales price can be driven well over ask (at least at lower price points), there’s considerable risk that the home will not appraise.
Unless, of course, the listing agent can successfully make their case to the appraiser, documenting the existence of multiple offers, what made the subject home so desirable, and providing any inside scoop the listing agent may have on Comp’s, Pending sales, and nearby Active’s.
Of course, to do all that, the listing agent must intercept the appraiser before they do their appraisal.
Two Hours Notice (Maybe)
As many veteran agents (and their homeowner clients) are well aware, busy appraisers are not exactly known for providing much if any advance “heads up.”
While I’ve occasionally seen showing requests a day or two in advance, I’ve also seen plenty 1-2 hours before.
Which means that if the listing agent wants to be assured of catching the appraiser, preferably in the home, it’s smart to change the post-sale showing instructions to require that all showings go through the agent.
P.S.: The foregoing presumes a financed deal. If the Buyer’s paying cash . . . everyone skips straight to the Buyer’s Proof of Funds.
