What is Form 244?
Form 244 is a form that sellers can sign in regards to the direction of offers or showings on their property. In the current sellers market, this form is starting to be utilized much more frequently. A typical scenario in which this form is used is where a seller lists their house but, in accordance with form 244, won’t allow their realtor to convey any offers to them until a certain date (typically a week or two from the listing date). The theory behind this strategy is to give sufficient time for potential buyers to get through the house before any offers come in. This sets the stage for multiple offer scenarios as all of these potential buyers will be putting their offers in on the same date to be presented at the same time to the seller.
Usage in Smaller Markets
Typically used in the city, this strategy has recently been invading the smaller markets such as Exeter. The success seen in the city has been duplicated on several listings here in Exeter, however it has also backfired on a few. An obvious advantage to using form 244 to direct offers to be conveyed at a certain date/time would be generating a bidding war to achieve a higher price. A realtor experienced with this practice will usually set the listing price to the lower end of their client’s target price range in hopes that it will attract more buyers and drive the price up.
Problems with the Strategy
The problem with using this strategy is some buyers quite frankly do not want anything to do with a multiple offer situation. Buying a home or any real estate for that matter is usually one of the biggest purchases a person makes in their lifetime. Most people do not want the extra pressure of a competition. This may turn potential buyers away once they realize they could be competing. The other issue with this practice is if no offers are registered on the conveyance date, the property runs the risk of losing momentum in a hurry and the price will likely drop.
If you are thinking of selling your home you should have your realtor explain the ins and outs of this practice so you are able to make the decision that is best for you. It is also wise to use a buyer agent in these scenarios so you can put in the best offer possible. Dealing directly with the seller’s agent can backfire in these situations as they could be putting in offers for their other clients as well. Not to mention a lot of MLS Listings do not portray to the public that form 244 has been signed. You could miss the offer conveyance date if you aren’t working with a competent realtor.
This was very informative! Thank you for taking the time to educate me on this.