Do you have a listing that you're having a hard time selling? If so, there's an interesting new solution called N-play that allows potential buyers to make anonymous, non-binding offers on line. This is one of the first steps in creating transparency in the offer process. Each offer is displayed and buyers can compare their offer to those made by other buyers. As you can see from the photo, the goal is to bring buyers and sellers together.
The various buyers can see which terms the seller wants (e.g., short escrow, larger down payment, etc.) The beauty of this system is that it allows buyers to make lower offers that they might not make if they had to go through the formal offer process. This can get the negotiation process rolling and actually help the sellers obtain a more favorable offer. It also removes much of the stress from the negotiation process.
Agents can participate using this system simply by having their clients enter their name and contact information. The folks at N-Play call their system an "anti-auction" since the seller may accept any offer or no offer. Once an offer is approved on-line, the agents write it up and have the parties sign the offer. Until the offer is ratified by all parties, the offer is not binding.
The system will be available on a subscription basis. If you're having trouble getting offers on one of your listings, this could be a great way to generate additional interest.
Posted by Bernice Ross, CEO www.RealEstateCoach.com, claim your success and make more Real Estate Dough with the best real estate coaching and training tools in the business.
Bernice. Thanks for the post. I have one question for you. You indicated that one "positive" attribute of the system is that it would promote lower offers from buyers that would get the negotiation rolling. Did you mean higher offers? It seems that buyers who are required to enter into a binding agreement (with escrow) are more likely to commit to a lower offer since they no longer control the outcome if the seller accepts. On N-Play, the psychology may work just the opposite, a buyer may be willing to offer a slightly higher price than they otherwise would under a binding arrangement since they are not bound and are attempting to illicit a positive response from the seller. Low offers get no responses. After a while, why waste your time. Binding offers get a response, but more often than not....not a positive one...which creates challenging negotiations. It remains to be seen what will actually occur, but transparency and nonbinding may have the opposite affect on buyers that one would think. I would like to know your thoughts on this.
Dear Mark,
You're absolutely right! Thank you for the thoughtful response!
Posted by: Mark Bloomfield | July 31, 2008 at 03:32 PM