what does offer due by xyz date mean?

Question

when looking at real estate websites, oftentimes I see "offers due by" some date

for example "offers due by may 12"

what does this deadline mean? I didn't realize I am back in high school?

so what happens if property doesn't get any offers by that date?

what happens if I submit my offer after the due date?

Chris Seveney · Answer

@Gregory Herbert

Truly market dependent

Some sellers will List a home below market value with offers due by a date to spur excitement

The whole fear of missing out which is absolutely true in the real world and in life.

In some cases we had 3-4 offers and some say they were going to make an offer so we would also put a deadline on it

Carlos Ptriawan · Answer

In Seller's market, rather than everyone waiting and waiting for the offers, the seller gives potential buyers a dateline when to submit the offer. This is also a technique almost similar like auction process.

These days, almost everyone over here uses final date. Usually, after 1 or 2 weekends of openhouse.

V.G Jason · Answer

Agents do this to create a frenzy and FOMO. Happens all the time.

If you like the house enough, and it makes sense. Put a competitive offer and put your own deadline on it.

Bruce Woodruff · Answer

This is also sometimes called 'Best and Final'. When I was looked for flip houses, I used to get calls from Realtors (I was on a list) saying be at this address at 3pm, you and 30 other people can look for 1 hour and then submit 'Best and Final' right on the spot.

It does/did create a sense of urgency....the 'winners' of these bids usually overpaid by a lot and were inexperienced newbie wanna-be flippers......

Henry Clark · Answer

@Gregory Herbert. If you’re starting out in REI, pick a realtor with a lot of listings.  Sit down with them and ask them to educate you on the buy sell process and the market for your type of investment.  Try to get most of your learning out of the way before you try to do a transaction.Buyer seller agent    Commission split

No subject to financing

Zoning

Market 3/2 2/1 parking school districts addl ADU property taxes insurance flood zones etc etc.

Close process

Deposits

How to make your bid preferable to a seller

Etc

Russell Brazil · Answer

The property will typically go under comtract later in the day after the offer deadline.

Andrew Freed · Answer

@Gregory Herbert - Good question! The offer deadline simply means the deadline the agent set for all offers so they can present it to the seller. Usually if you miss the deadline, you miss out on your opportunity to have the offer presented to the seller.

Additionally, I have seen people set offer deadlines and accept offers before the deadline hence I think it is best practice to get an offer in as soon as possible, call the agent before the deadline to see where offers are at, and adjust as you see fit. However if you miss the deadline, there is a good chance you will miss out on the opportunity unless they have no offers.

what does offer due by xyz date mean?

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