Property Sellers 24 March 2021

Why You Shouldn’t Use Form 244 With No Conveyance

As a home buyer or seller, you may become familiar with form 244, otherwise known as “Seller’s Direction”. This form specifically references how a Seller would like to review offers on their property. Many Sellers choose to sign this form to wait for a certain date to review all offers and, opt not to see any offers before that date known at no conveyance. There is also the option that Sellers have to sign this form and still, review offers before that date.

When to Use Form 244

Before I get started on why not to use form 244 with no conveyance, I’ll share when you should use form 244. Let’s say you’re taking a vacation and you had no ability to review an offer before a certain date. This form would allow you to have peace of mind that you’re not missing offers before that date. You may also choose to use form 244 if you aren’t comfortable making quick decisions. Having the form signed gives an exact date and time to prepare for when you’ll need to make a decision.

When You Shouldn’t Use Form 244

Now here is why you shouldn’t use form 244 when selling your property. Signing form 244 without conveyance means that even if an incredible offer is submitted to your Realtor by a potential buyer, you’re not able to be notified of that offer. I’ve outlined reasons why Form 244 can fail.

Competition From Another Listing

You’ve listed your property aggressively in accordance with the market, decided to hold an offer for a week, then suddenly a new listing comes up. This listing is a lower price, better condition and they’ve decided to review offers a day after your listing. Now all the buyers who may have been wishing to submit an offer on your property will likely be gone. The offer date comes for you and now you’re left with one or two offers and not up to the expectations of your ideal price point.

No Offers on Offer Date

You feel as though your property will receive multiple offers while in fact it was overlooked by many buyers. On the offer date, you receive no offers, and now you’re forced to re-list at a new price. The thought of other buyers jumping on their dream home forces the hand prior to the offer date in most cases. Not allowing this can sometimes be detrimental for your listing.

Eager Property Buyers

With high levels of low inventory and eager property buyers, they will typically try their hand at anything they are able to. If your property is holding off on reviewing offers, the buyers may move onto another listing. The buyer can submit their offer with more predictability on their price.

What’s the Solution?

Set a preference for an offer date, providing an expectation of when you would prefer to review offers. This conveys that you’re not going to take the asking price, however, for the right price you would be willing to review an offer early. Have a discussion with your Realtor as to what this price might be so that you’re on the same page. Ultimately, this still gives an expectation without hindering your sale.