Here are the main learning objectives of this course:
- Identify the articles and standards of practice in the National Association of Realtors Code of Ethics that are especially relevant to multiple offer situations.
- Apply the Code of Ethics and Broker Duties to multiple offer situations to help ensure licensees are practicing in a professional and ethical manner.
- Identify challenges with communication in Multiple Offer Situations.
- Learn how to properly use the Seller’s Notification of Multiple Offers.
- Learn how to help your buyers win in multiple offer situations, examine the ethical considerations of Offer Letters and Escalation Clauses.
This course has 7 lessons, or sections, some of which contain multiple topics. Once you’ve read through a lesson or topic, make sure you mark them complete. There are videos and links within some of the topics. They are required, you will be quizzed on them along with the other content throughout this course. You must score 100% on the quizzes to pass through to the next lesson. Don’t worry, if you take your time reading the material, the quizzes will not be hard!
The content is divided into three main sections:
- Section 1: Ethical and professional considerations – the Code of Ethics and Broker Duties
- Section 2: Practical Considerations – paperwork, procedures and communication
- Section 3: Effectiveness – strategies to help buyers win at multiple offers, including Love Letters, Escalation Clauses, offer tips, etc.
The Premise of this Course
Market conditions affect everything in real estate – how fast homes sell, how fast prices increase (or decrease), how much work sellers have to put into their homes before they hit market, how quickly buyers have to make offers and more. One thing, however, shouldn’t be affected by market conditions, and that’s a licensees adherence to the ethical standards in the National Association of Realtors (NAR) Code of Ethics. When the market gets hot, the need for licensees to behave ethically becomes greater than ever.
It’s a Seller’s Market
“A seller’s market occurs when demand exceeds supply, or there are more buyers seeking to purchase properties than there are available homes on the market.”
“This often leads to multiple buyers interested in a single property, resulting in bidding wars. A seller’s market is a fantastic time to sell your home as you could secure a sale price that’s higher than your listing price, or at least more than your bottom line (the lowest price you’d be willing to accept for your home).”Redfin: https://www.redfin.com/resources/buyers-market-sellers-market
It’s a seller’s market in many areas of New Mexico. Inventory is near all-time lows and buyer demand is as high as it’s ever been. Even COVID-19 hasn’t put the damper on the Albuquerque real estate market!
Albuquerque is not the only hot market in the state. Areas like Los Alamos and Carlsbad have low inventory levels in relation to demand, and sales in Santa Fe and Las Cruces are strong too.
Throughout this course you’ll be asked to follow a link to a related article. There will be some questions to answer, and your progress will be blocked if you don’t answer correctly. Follow the link below to read more about seller’s markets.
Please read the related article (there will be questions on the quiz): What is a Seller’s Market?
Problems Caused by a Fast Moving Market
Image 3 above shows an absorption rate of 1.4 months for single family or detached homes, meaning it would take only one and a half months to exhaust the current inventory on the market. The National Association of Realtors says the 5-6 months or so of home inventory indicates a balanced market, meaning it’s neither a buyer’s or sellers market. As the number moves lower, prices go up, and the market moves faster and faster. For example, with a low absorption rate like 1.4 months, it’s not unusual to see sellers accepting offers on the first or second day of the market, and in many cases that are receiving 3 or 4, and sometimes even more offers. As a result, buyers who need affordable homes are priced out of the market.
It can be a fun market to work, especially if you have listings, and there’s a certain rush to working with buyers too, to help them actually get an offer accepted. However, when the market is hot, and offers are flying, offer writing can get rushed, leading to broker sloppiness, and offer presentation can be tricky, presenting brokers with ethical problems to wrangle with that aren’t there in more normal markets.
The rush to work in a hot market can also lead to poor communication, bad customer service, and less than ideal procedures like verbal calls for highest and best offers.
This course is designed to alleviate these issues, and to highlight what the National Association of Realtors Code of Ethics says when it comes to multiple offer situations.
Once you’re ready to take the quiz, mark this lesson complete.