Owners are often willing to accommodate a potential buyer granted the right of first offer because the detriment and cost to the owners is nominal.
All owners have to do is notify the holder of the terms of the sale they are willing to accept before they market the property for sale. The owners’ offered terms do not have to be reasonable or comparable to the market.
The right of the first offer alone is a “take it or leave it” proposition -- there is no obligation on the part of the owners to consider a counterproposal. If the offer is not accepted within the agreed-upon response time, then the owners can move forward with their marketing plan without any further need to deal with the holder.
Another option is structuring the right of first offer agreement to have the holder, upon notice from the owners that the owners are interested in selling, make the first offer. This arrangement likewise places a minimal burden on the owners as there is no obligation on the part of the owners to consider the holder's offer.
The owner's only inconvenience is having to provide notice to the holder and wait the specified period of time (e.g. 10 to 30 days) for the holder to make an offer before placing the property on the market.
The primary advantage to the holder of the right of first offer is that they will be alerted when the property will soon be available for purchase. The holder has the opportunity to build a relationship with the owners; discuss whether or not the holder is in a position to purchase; and prepare for making a better-informed offer that the owners may take more seriously.
A right of first negotiation is an addition to the right of first offer rather than a separate right. The idea is to give parties time to come to an arrangement with the owners after an initial offer is rejected in order to make counterproposals and, if at all possible, make competing offers.
Owners may not be willing to accept even a reasonable offer without first experiencing how third-party buyers respond to a listing of the property on the open market. There is no further duty on the part of the owners if the parties are unable to reach an agreement during the negotiation time unless the holder also has a right of first refusal.
A right of first refusal is triggered only after the owners have successfully received a satisfactory offer from a third party.
During the acceptance time indicated in the right of first refusal provision, the property owners are required to postpone accepting any suitable offers they receive from third parties so that the holder can determine whether to match them.
Important to understand: A third-party potential buyer typically gives the seller only a few days to accept an offer.
Because the first refusal presents a risk to property owners that a third-party buyer will withdraw a competitive offer if the owner can't answer quickly, it can be anticipated that the right of first refusal period will be shorter than the period for a response to a satisfactory third-party offer.
Summary: Property owners who, if all other factors are equal, may prefer a sale to the potential buyer holding the right of first refusal, and therefore may find the grant of a first refusal to be appealing.
There was a time when a buyer working with one agent could have a fighting chance of finding the right home that met all of their needs, but that is not as likely in this very tight inventory environment.
Our analysis shows that the more connections potential buyers have with property owners or the property owner's registered last-selling agent, the more likely they are to find off-market opportunities to buy where they want to live.
The property owner’s last-selling agent is the key to providing off-market sale opportunities because they are the one agent that knows the owner, knows the property, knows the market value, and often knows when the property owner is ready to sell.
What potential buyers really need is to focus on having an agent or agents that are in the information flow with the types of homes that they seek before they are listed for sale to the general public.
BuyItNext.com simply helps facilitate connecting registered potential buyers with the registered last-selling agents when property owners are getting ready to sell.
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Current Owners:
Last-Selling Agents:
The last selling agent wants to:
"The most important asset you can own in your business is the attention of your existing customers and potential customers.
Savvy Potential Buyers:
Off-Market Property Advisors:
For more information, see... What is an Off-Market Property Advisor on BuyItNext.com
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1.3 Why don't all off-market properties on BuyItNext.com have a registered last-selling agent?
For a variety of reasons, a property parcel may not have a last-selling agent registered on BuyItNext.com. Here are just a few reasons:
When there is no registered last-selling agent, prospective buyers have five basic options.
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1.4 Customer - first, lifetime relationships.
Customer-first, lifetime retention is now a prevailing theme in off-market real estate, which increase repeat business, presents new business opportunities, and can increase lifetime customer value. But how can agents convert “customer for life” from theory to practice?
The transition from the buyer's agent to the current owner's last selling agent as a life of ownership advisor is too often a missed opportunity and must be a primary focus of agent relationship modernization.
Customer expectations for both on-demand efficiency and smart human advice are changing the game.
Here’s how last-selling agents can establish a lifetime relationship engagement loop.
1. Customer Retention: When we think of off-market properties, this comes in a few forms: helping owners engage property maintenance, property improvement, and, of course, property resale. For property maintenance and improvement projects, the last selling agent can combine property service provider lists and smart human advisory insights fast.
For future efficient property resale transactions, the last-selling agent needs to be at the center of the conversation to know about potential buyer interest throughout the tenure of ownership.
2. Engagement: Due to the multitude of real estate websites, buyers already know what’s on the market and sellers many times are able to learn the valuation by themselves so the agent role becomes advisory or a facilitator today.
For property resale, triggers telling agents an existing customer wants to or has listed their property are too late. Now agents can and must begin the property resale process when and where agents see potential buyer interest activity and can therefore facilitate smart human connectivity — which includes being the center of the activity for facilitating prospective interest engagement from all types of potential buyers, including, investors, power buyers, and especially traditional buyers throughout the tenure of ownership.
If you are engaging current owner clients with potential buyer interest throughout their duration of ownership, you can also assist them with their next property purchase transaction, by knowing about off-market buying opportunities that matter to them right at the moment of intent.
3. Seamless Customer Service: Customers still want someone to hold their hand and assure them that they are making the best decisions. And more than ever agents' connections and resources for a smooth transaction are necessary as consumers have so many options and giving them the best is all they want.
Going back to the opening paragraph above: customer expectations for both push-button efficiency and smart human advice are changing the game. Property ownership and real estate transactions are complicated and consumer self-serve isn’t enough. Last-selling agents must, on the behalf of current owner clients and potential buyers, get connected online before the many disruptors capture the attention of consumers.
The primary advantage to the owner, last-selling gent and holder of the right of first offer is that they will be connected even before the property is available for purchase. The holder has the opportunity to build a relationship with the owners and the owner's last selling agent; discuss whether or not the holder is in a position to purchase; and prepare for making a better-informed offer that the owners may take more seriously.
Consumer - first, lifetime relationships.
Consumer-first real estate agent modernization isn’t just a catchphrase, it’s mandated agents must follow in a consumer-led era. This concept hits harder when we view the real estate transaction world from either a seller and/or buying experience.
The tech that powers smart last-selling agent utilization and off-market collaboration with potential buyers where they are -online, is what brings the consumer-first modernization to reality.
The endgame is a continuous loop where tech-powered customer attention, retention, collaboration, and engagement in property ownership lead to new transactions, which then lead to — and preserve — lifetime relationships.
The real estate agent that is helping the current owner find, negotiate, finance, inspect, and ensure the property is well-positioned to help the next buyer do the same, often with the same product and service providers. Example: The last selling agent who helped the current owner find, inspect, insure, finance, insure marketable title, and close the transaction would likely refer the next buyer to use the same title/escrow agent for an efficient next-sale transaction.
The great news is that this reality is finally coming into focus for agents, sellers, and buyers of off-market properties.
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1.5 So why is BuyItNext.com able to make a splash in the off-market real estate marketplace?
Our point of differentiation is unique to our company, something no one else is currently claiming, and it must be backed up with real expertise, action, process and culture. Starting with licensed real estate professionals, BuyItNext.com connects potential buyers with last-selling agents who helped current owners purchase their property, and are well-positioned to help when property owners are getting ready to sell.
That strategy — to support established players, rather than try to disrupt their existing relationships.
Below are just several unique BuyItNext.com objectives:
Important:
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1.6 What is a Single Point of Contact's Model Exclusive Right To Facilitate Off-Market Offers Agreement?
The model draft document can be used by property owners and their choice of agent to establish a Single Point Of Contact for the purposes of receiving, comparing, and presenting offers from potential buyers throughout the duration of ownership without actively listing and marketing the property for sale and in compliance with the provisions of Clear Cooperation Policy provisions.
Key summary provisions:
1. Consultation fee is will likely be waived.
2. Designated SPOC Obligations:
- to assist the property owner with receiving and processing of right of first offer requests.
- to assist the property owner, when redy to sell, in receiving, comparing and presenting off-market offers from potential buyers.
- to use professional knowledge, skills and expertise in assisting consumers.
3. Client Obligations:
- to work exclusively with the designated SPOC agent during the terms of the agreement
- to furnish relavent property information to SPOC necessary to facilitate off-market offers
4. Term of the agreement shall terminate at anytime upon oral or written termination by Client
5. Important: IF YOU DO NOT UNDERSTAND ALL THE TERMS OF THIS DOUCUMENT, SEEK COMPETENT LEGAL ADVICE BEFORE SIGNING. The model on which this document is based should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. It should be revised under the guidance of legal counsel to reflect the specific situation.
1.7 Last Selling Agents - Who is capturing the attention of off-market owners?
If you, as the last-selling agent don't own the relationship with your past clients, someone else will or already does.
With scalable solutions that protect communities, provide access to opportunities, and enhance off-market selling and buying transactions. BuyItNext can help organizations and individuals make better decisions with insights that enrich their lives.
From individual decisions, such as those that help retail buyers compete in the gig economy, to insights that help organizations of all sizes flourish. It can also mean specific tools that give real estate agents better long-term relationships with consumers and emerge more competitive.
The rapidly changing world is leaving many agents and first-time buyers behind. From small and medium-sized brokerages to incumbent leaders, traditional real estate service providers are failing to meet the needs of consumers by continuing to promote offerings that reflect an obsolete notion of how the world operates. BuyItNext.com wants to change that by providing solutions for the underserved to participate and thrive.
The range of possibilities for helping the underserved is broad. From a simple search tool that gives underserved potential buyers a path to more agent-in-the-know relationships, to alliances between home service providers and consumers that facilitate off-market transactions that save consumers time and money.
A prime example of last-selling agent relationship disruption is the Zillow Premier Agent program which generates over $1.5 Billion dollars annually of agent-paid advertising revenue. Zillow.com is the largest online portal used by consumers. Zillow.com and Trulia.com feature agents who are willing to pay to be seen alongside properties actively listed for sale in order to be seen by potential buyers. Zillow also features "Premier Agents" on properties that are off the market.
As if there wasn't significant competition for the attention of current owners amongst over 3 million real estate agents nationwide, iBuyers, buy & hold investors, wholesalers, and fix & flip buyers are expending significant amounts of money pitching property owners on the convenience of selling fast without the hassles and uncertainty of listing a home for sale.
These almost most instant offers are an attempt to disrupt the prior existing relationship between property owners and their last-selling agent who helped them buy their property.
So, what are the ways last-selling agents are able to maintain their relationship with current owners throughout the duration of ownership? One of the best ways to keep the attention of your clients is to keep them informed on real estate trends, but obviously, that is not enough in hyper-competitive markets.
A last-selling agent must stay connected with their past clients by providing information that has intrinsic value throughout the duration of their ownership, including the competitive benefit of having access to potential buyers interested in property before it is listed for sale.
BuyItNext.com keeps registered last-selling agents at the center of the conversation.
1.8 What is an Off Market Property Advisor?
Off-market property advisors on BuyItNext.com is a licensed real estate professional (e.g., broker, agent, team leader) who wants to help unrepresented potential buyers connect with unrepresented owners before a property is listed for sale. Off-market property advisors will also reach out to the current owner's last selling agent if registered on BuyItNext.com.
Teaming up with an off-market advisor helps potential buyers’ need for technology and speed. With one off-market property advisor - potential buyers can find off-market opportunities in the area they want to live or invest in.
BuyItNext.com requires each off-market property advisor to:
- Seem to understand sellers and buyers effortlessly
- Are consistent
- Always help see things from a fresh perspective
- Don't try to force things
- Help think things through
- Separates logic from emotion
- Informs and shares their experiences
- Are in it for the long haul
- Give reasoning, not just their conclusions
- Give options, increase understanding of those options, give their recommendation, and allows for choice
- Challenge assumptions
- Acts like a real person, not someone in a role
- Are reliable and always seem to have your interests at heart
- Are always honorable
The listing of an off-market property advisor on this site does not constitute an endorsement or recommendation by buyitnext.com
1.9 In low active listing inventory markets with higher interest rates, buying real estate is hard.
There are 577,972 properties actively listed for sale in February 2023.
With inventories of houses available for sale down at their lowest levels in 10 years, potential buyers should be looking for buying opportunities off-market.
One of the first questions buyers should ask their real estate agent is..."Are you aware of any off-market properties that are coming soon?" Typically the answer is "Yes - 1 or 2 properties, but I will check around with other agents in my office, and call some past clients to see if they are interested in selling."
So if one agent typically knows of 1 or 2 coming soon properties, then the odds of one of those properties being what the buyer wants is very low.
There has got to be a better way for buyers to find out about more off-market opportunities where they want to live, and there is!
It starts with understanding the critical point of seller decisions.
When an owner or owner says to themselves "maybe it's a good time to sell" they typically will call the real estate agent who helped them buy their property. At the pre-listing appointment, there is a prime opportunity for the agent to share with owners the level of off-market potential buyer interest.
In a normal real estate market, sellers typically want maximum exposure to the largest available pool of buyers, which in today's low inventory markets can be accomplished before a property is listed for sale, which is still pro-consumer and highly competitive.
The solution: Instead of door knocking, BuyItNext.com helps potential buyers, and or their agents - improve their chances for success by connecting with last-selling agents who are having pre-listing discussions with off-market property owners. Potential buyers need to be connected, not just to one agent, but to multiple agents who know about off-market opportunities, even before the coming soon sign goes up.
How many connections? The more the better! For example, a potential buyer wanting to live in a neighborhood would be well advised to get efficiently connected on BuyItNext.com with either the current owner or the current owner's last selling agent before a property is listed for sale.
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2.0 Why should current owners register on BuyItNext.com?
It's easy, and it's FREE!
Current owners who want to be connected to potential buyers can register on BuyItNext.com if they don't have or intend to use the last selling agent that helped them buy their property. This way current owners can know when there is potential buyer interest throughout their duration of ownership and then get connected when they are preparing to sell.
Step 1. Sign up as the current owner. Important: Intentionally misrepresenting current ownership of a property on BuyItNext.com will result in the removal of user privileges. See the Terms of Use policy.
Step 2. Receive notifications of potential buyer interest throughout the duration of ownership.
Step 3. Sign in to review potential buyer interest questionnaire responses.
Step 4. When ready to sell, login in to change your property status from "off market" to "ready to sell", which generates secure notifications being sent to registered potential buyers. Potential buyers are advised to contact the current owner if they are interested in off-market opportunities.
Step 5. When contacted by registered potential buyers:
Important: Registering on BuyItNext.com does not obligate current owners to notify anyone of their intent to sell.
The listing of the last selling agent or an off-market advisor on this site does not constitute an endorsement or recommendation by buyitnext.com
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Most prospective buyers are accustomed to looking at real estate online for an average of six months before contacting an agent in order to gain access to properties they are interested in. The problem is they are often one of many potential buyers on a limited inventory, which often leads to disappointment and frustration.
Prospective buyers should consider opportunities to buy off-market properties before a property is "listed for sale".
How?
1. Register on BuyItNext.com to receive notifications when owners are ready to sell.
2. Consider utilizing the current owner's last-selling agent who knows the property and knows when the owner is getting ready to sell
3. Consider utilizing off-market property advisors who are focused on facilitating local off-market transactions.
3. Be willing to bid for the right of the first offer to have the first crack at buying when the owner is ready to sell.
4. Not only negotiate a satisfactory sales price but also negotiate real estate broker/agent commission compensation.
Potential buyers are increasingly frustrated with the lack of properties for sale.
So where are all the properties? Off-Market.
So simple logic dictates potential buyers need to be engaging further upstream.
BuyItNext.com addresses the need for an efficient and effective way to connect current owners, or the current owner's last selling agent with potential buyers so they do not miss out when the current owner is getting ready to sell. Sign Up now!
Off-market transactions are not new. Off-market transactions present a unique opportunity to reduce a buyer's purchase price without reducing a seller’s net proceeds by having one facilitate the next home sale transaction as a transaction broker, facilitator, or intermediary. Terms used to describe a facilitator's role vary by state and local authority.
Savvy real estate agents have increasingly used commission rebates or other inducements to home buyers and sellers. Inducements that go directly to buyers or sellers lower costs on both sides of the transaction. Commissions are negotiable, and they always have been.
The Buyer Rebate Savings Calculator below illustrates potential buyer savings in the form of a buyer commission rebate (where allowed by law in 40 plus states*) when a real estate professional provides “transaction broker” services, which has the potential to reduce the buyer’s final purchase price, without reducing the seller’s proceeds or adversely affecting a transaction broker's compensation.
Cash rebates are usually calculated as some fraction of the broker's commission and can result in thousands of dollars being returned to the consumer. See the example below:
| Buyer Rebate Savings Calculator | |
|---|---|
| Sale Price | $500,000 |
| Real Estate Commission Percentage | 5.00% |
| Real Estate Commission | $25,000 |
| Seller's Net Proceeds | $475,000 |
| Buyer Commission Rebate % | 1.00% |
| * Buyer Commission Rebate $ | $5,000 |
| Buyer's Effective Purchase Price | $495,000 |
*Buyer commission rebates are limited or not permitted in Alaska, Louisiana, Mississippi, Oklahoma, Oregon, New Jersey, Tennessee, Kansas, Alabama, and Missouri.
Important: In Texas AS AGENT FOR BOTH - INTERMEDIARY: To function as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:
2.3 What does playing poker and off-market property transactions have in common?
To play poker you have to "buy in” or "ante up to participate.
Similarly, serious buyers may be willing to "put their money where their mouth is" by bidding for the Right of First Offer. Learn more about the Right of First Offer here.
When buying off-market property potential buyers need to let current owners or the current owner's last selling agent know they are interested in buying the property.
The best way to show buyer interest is to share responses to the buyer interest questionnaire, which helps the current owner or the current owner's registered last selling agent know there is potential buyer interest.
The buyer interest questionnaire helps jump-start a possible future connection.
Like playing poker, it's best not to show your hand until someone "calls you", so BuyItNext.com is careful to protect the Personal Identity information (PII) of potential buyers so they are not inundated with unsolicited attention from agents. Potential buyers have the choice of when they disclose their PII.
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