Last week I wrote about my clients in the Classic Fountain Valley tract, north of Warner Avenue and east of Newhope Street, who received seven offers on their home. It sold for $8,100 over the list price of $569,900 within the first week on the market. The victorious buyers agreed to remove the appraisal contingency.
This past week, my seller in the Meadow Homes tract, south of Talbert Avenue and west of Bushard Street, received four offers on her home. John and Linh attended the open house. They wanted to buy it. They asked, and I agreed to represent them.
I disclosed that the seller had received three other offers. When an agent represents both the buyer and the seller, dual agency is established in which the Realtor cannot disclose to the buyer the seller's bottom line, nor can she reveal how much the buyers are willing to pay.
The seller was out of town. I emailed her the four offers. She decided to issue a counteroffer to each of the buyers, containing the following stipulations: 1) buyers to provide their best and final offer, and 2) buyers agree to remove the appraisal contingency. When the buyer removes his appraisal contingency, he is agreeing to pay the contractually agreed upon purchase price, despite the possibility of a lower appraised value.
To achieve a fair and equitable result for all the principles involved, I asked the agents and my buyers to place their counteroffers in a sealed envelope and deliver it to my office. On Wednesday morning, the seller opened the envelopes. John and Linh's best and final offer was $2,000 more than the next highest offer. All the buyers agreed to remove the appraisal as a contingency of the contract.
The seller accepted John and Linh's offer. John is a manager at Hyundai in Fountain Valley, and Linh works for Orange County. They have two young children. Grandma lives nearby and will baby-sit the kids. The house is in escrow for $18,000 over the list price.
Note to Orange County Homesellers homesellers: condition your house to sell and price it according to the comparable sales, and you, too, will receive multiple Offers