We Are Ohio REALTORS: Market Experts

Ohio REALTORS is proud to present “Market Experts,” part of its year-long video series celebrating the many attributes REALTORS possess. This video celebrates the important role REALTORS play in boosting our communities and advancing the American Dream .

This ground-breaking series is designed to showcase the unique professionalism, respect and admiration embodied within Ohio’s more than 31,000 real estate professionals. Click the links below to view past episodes of the “We Are Ohio REALTORS” professionalism series:

 

Tags: We Are Ohio REALTORS Professionalism Series

Ohio Market Watch: Multiple offers becoming the norm

By Greg Stitz, Ohio REALTORS Director of Research

It’s a seller’s market due to low inventory so it’s interesting to take a snapshot of the number of offers Ohio REALTORS received on the last residential sale they closed. According to findings from the latest housing market confidence survey, 58 percent of respondents received multiple offers on their last sale. Forty-two percent received two or three offers, 9 percent received four or five offers and 7 percent received six or more.

number of multiple offers

Survey results are based on responses to a monthly survey, designed to capture the effects of the existing economic conditions and trends on the real estate industry, sent to a pool of 1,500 Ohio REALTORS participants. Click here to participate in future Ohio REALTORS Housing Confidence Surveys.

Tags: Ohio Market Watch, research

Escalation Clauses: A legal way to guarantee a multiple offer win?

scales of justice

By Lorie Garland, Ohio REALTORS Assistant Vice President of Legal Services

The OAR Legal Assistance Hotline receives an array of real estate-related legal questions — including license law issues, disclosure, contract law, ethics and commission problems, among others. In an effort to help you work within the law we spotlight some of the timely questions that are being asked by REALTORS. This one centers on the legality of gaining an edge in multiple offer situations…

Q: My seller received multiple offers on her property. The seller directed me to disclose to all buyers that she had received multiple offers and to request they each make their highest and best offer. One of the buyers had his agent submit an offer which provides that the buyer will pay $250,000 or $1,000 more than any other offer. Is this legal?

A: Yes. This type of provision is commonly referred to as an escalation clause. This provision is most often used when a buyer knows he is in a multiple offer situation. The buyer’s intent is to ensure he is making the highest offer.

While legal, if not carefully drafted escalation clauses can have unintended consequences. When including such a provision in an offer to purchase there are several issues the buyer should consider. Let’s start with price. Is there a cap on the price the buyer will not go above? Let’s say a buyer would like to pay $250,000 for a property, but if necessary would be willing to pay $275,000. The offer could be written for $250,000 with an escalation clause that caps the offering price at $275,000. Without such a cap, a buyer could end up paying more than he intended.

A buyer may also want to specify that offers are competing on the basis of net proceeds. If a buyer submits an offer of $250,000 with an escalation clause he would not want the escalation provision to apply to a competing offer of $260,000 that includes a $20,000 credit towards the buyer’s closing costs. For this reason, net proceeds should trigger the escalation clause. And in this example, a net offer of $240,000  would not increase the buyer’s $250,000 offer.

The escalation clause should also only apply to bona fide offers. This means an offer from a buyer with the genuine intent to buy the property, not just to run up the purchase price. The buyer should require some evidence the offer is from bona fide buyer. This proof could be the seller providing a copy of that offer.

REALTORS should remind buyers that the highest priced offer may not always be the best offer received by the seller and that price is just one of several factors a seller may consider. However, if a buyer wants to give their offer an edge by including an escalation clause it is important that it be a properly drafted. Further, to avoid the unauthorized practice of law, this should be prepared by an attorney.

 

Legal articles provided in the OAR Daily Buzz are intended to provide broad, general information about the law and is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney. 

Tags: legal, Legally Speaking

Coaching Corner: Be you!

By “Coach” Marilou Butcher Roth

Earlier this week I attended the funeral service for a classmate who had passed away. In attendance at the visitation were several other classmates, as well as neighborhood friends from many years ago. I told my husband it was like a weird game of chicken — I would see someone, make eye contact with them and then we would both look rather quizzically at each other until one of us got brave enough to ask if they were the person we thought. So strange!!

Many of the people there I had not seen in several decades and everyone I spoke with was retired. I was asked by several the normal question of “what do you do?” After a few rounds of this, I realized I was hanging out there on my own.

Upon leaving the visitation, I not only felt the sadness of my classmate’s passing but also had this strange sense of feeling like I was from another planet…and it was not the retirement planet! Old habits die hard, and just being in the midst of these long ago friends, took me back mentally to that time. Relatively quickly, I rebounded and had such a lovely awareness of how beautifully each of us were being ourselves.

Sure, when you are going through elementary and high school, feeling part of the group is extremely important. But at this age, appreciating your individuality is much more of a fit. This week I invite you to identify and appreciate those aspects of yourself that make you YOU!

That’s all its about really, being the BEST YOU possible!!!

 

Marilou Butcher Roth is the owner of The MBR Group, a coaching and training company working primarily with REALTORS who have a desire to work and live from a more inspired place. She is also the Broker/Owner of Group REALTORS in Cincinnati.

Marilou is a member of the OAR Board of Directors and past chairman of the organization’s Communications Committee. Feel free to contact Marilou to see if coaching is right for you: Marilou@mbr-group.com

 

Tags: Coaching Corner, training

Ohio Market Watch: No change from last year in sellers’ valuation of home to sell

By Greg Stitz, Ohio REALTORS Director of Research

Consistent with June 2016’s findings, about one-third of respondents to Ohio REALTORS’ June 2017 housing market confidence survey indicated their sellers are becoming more realistic when anticipating the value of their homes to put on the market. Also true for June 2016 and 2017 is another one-third indicating their buyers are becoming less realistic. The remaining roughly one-third of respondents for both years finds no change in buyers anticipating the value of their homes to put on the market. Respondents were more likely to indicate buyers were more realistically valuing their homes in June of 2014 and 2015 with percentages of 50 and 41, respectively.

chart of seller valuation

Survey results are based on responses to a monthly survey, designed to capture the effects of the existing economic conditions and trends on the real estate industry, sent to a pool of 1,500 Ohio REALTORS participants. Click here to participate in future Ohio REALTORS Housing Confidence Surveys.

Tags: Ohio Market Watch, research

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