If you are navigating the mind field that is Toronto real estate you have
probably come across the following comment in remarks for brokerages;
Seller is out of town please allow 48 hours irrevocable.
Travel industry must be doing great because majority of the people who are
trying to sell their home are travelling. Strangely enough this is even
more prevalent in neighbourhoods were it only takes a few days to sell the
To those of you who are yet to take the plunge into a home buying proces
Irrevocable is the time deadline by which the seller or the buyer has to
reply to your offer. The seller will use this time to think about your
offer. Their realtor will use it to call every other agent that has shown
the property in an attempt to get another offer. If there was someone that
was considering buying the same property the fear of losing the house will
often motivate them to make an offer. And just like that you will find
yourself in a bidding war.
This is done when the realtor estimates that requesting all offers to be
presented on a preset date is counterproductive. I don’t have a problem
with using irrevocable to gain advantage for my client. I do however lose
respect for the realtor if I have to pretend that you need 48 hours to get
something signed in the year 2012. Where exactly is your client?
I was recently helping out of town buyers to purchase a property in
Toronto. They came to Toronto for the weekend and decided that they like a
property that was holding off on offers until Tuesday. This did not work
for my clients since they had to be back at work on Monday morning and
would not be in town for the “offer night”. We decided to put in a “bully
offer” (an offer that ignores the fact that the seller is requesting offers
on a set date, yes you can do that). I will admit that I chose to present
our offer late on a Sunday night and we gave a short irrevocable to the
seller. They agreed to see our offer before the offer date and I felt that
it was only fair that they respond to our offer in a timely manner. The
strategy worked and I believe thaboth sides are happy with the outcome.
Irrevocable is part of every contract offer for a reason. It is there to
create a time frame for an offer, not to put one side at an advantage.
Advice for the fellow realtors:
Putting an over used copy paste justification for asking for 2 days for
your clients to “think” about the offer is not good for your reputation and
credibility. Don’t do it. Learn how to negotiate the best possible deal for your clients instead. You will eventually have to learn how to do that
anyway. Houses will not sell with multiple offers forever.