Frequent Asked Questions

BuySquareFeet.com
Making an Offer
After Making an Offer
Selling a Property
For Agents

 

BuySquareFeet.com

1. What is BuySquareFeet.com?

“See it in person. Negotiate on-line.” It’s real estate as you know it, but with open on-line offersand negotiations.  When a property is listed on BuySquareFeet.com, buyers, sellers and spectators can see all the offers in real time.  As a buyer, you can offerwhat you want, when you want.  As a seller, you can respond to the offers - giving feedback - ensuring a satisfactory deal to all parties.

BuySquareFeet.com is not an FSBO service. Only listing agents can list properties on BuySquareFeet.com.  Buyers, however, can make offers themselves or use an agent.  Buyers can also choose to hire an agent just to close the transaction.

2. Is BuySquareFeet.com an auction?

No, it is not an auction as you don’t have to have the highest offer to secure the deal. You have to have the best offer, as determined by the seller.

3. What does this process do for me?

Take Neil and Sarah, for example - Over the period of a year, they found eight great homes for their family.  Eager to buy, they placed eight offers.  Though they made it as far as the #2 spot, they never got a home.  The worst part was, on eight different occasions there was no opportunity for Neil and Sarah to negotiate further or to fully understand what they could have done to secure the top spot.  Naturally, the sellers could never have realized how far all the potential buyers were willing to offer, and therefore the best deal was likely not secured.  BuySquareFeet.com allows for open negotiation for all parties, giving them every opportunity to fully participate. 

4. Does this mean you are eliminating agents, open houses, and standardized contracts?

No!  Not at all.  It’s just like traditional real estate where you can choose to use an agent or you can choose not to.  You can attend zero or all open houses.  You will fill out the same California Association of Realtor’s contract as you normally would. BuySquareFeet.com just opens up the offer and negotiation process so everyone is given the opportunity to achieve greatest success.   

5. Since the process is open, will everyone know who I am as a buyer or seller?  What about privacy?

There is complete privacy.  Only your username, which you choose, will be disclosed on the site.

6. How exactly does this process work?

On http://www.buysquarefeet.com click on “Demo”

7. Who can participate in BuySquareFeet.com?

Anyone with an internet connection can watch the offer and negotiation process.  Anyone who is registered on the site and is pre-approved with a lender can offer and negotiate on a home. 

Making an Offer

8. What do I need to do to place an offer on a home listed on BuySquareFeet.com?

There are two levels of participation.  The first is achieved by simply registering at buysquarefeet.com:

The second level puts you another step closer to securing the property:

    1. Fax your pre-approval letter to buysquarefeet.com at 650.240.1400 (To see the difference between pre-qualification and pre-approval is, click HERE.)
    2. Once we verify the pre-approval with your lender, we will email you a form for your electronic signature stating that you understand that all offers you will be making are binding.
    3. Sign (electronic signature) and email the document back to us.
    4. Your username will be added to the list of pre-approved clients and we will email you a password.
    5. Place an offer!

9. Can I place an offer myself or do I need an agent?

You can make an offer yourself or go through an agent.

10. Can I obtain the Buyer agent portion of the commission if I don’t use an agent?

No, however, the overall commission expense for the seller may be lower, so your offer may yield a better return for the seller than a higher offer of a buyer using an agent. 

Currently the industry standard allows the listing agent to obtain the buyer’s agent’s commission if the buyer doesn’t use an agent.  Though on buysquarefeet.com, it is up to the seller and listing agent if the listing agent forgoes the buyer’s agent’s commission when the buyer doesn’t use an agent.  In this case, the money is put toward the sale of the house, giving your offer more dollar value toward the purchase.

11. I don’t want anyone to know how much I am offering for a house.  Will my privacy be protected?  

Yes.  Only your username will be revealed.  (Just make sure that the username/login name you choose doesn’t “give away” your identity.)

12. I am excited about this process but am an old-fashioned buyer/agent and am uncomfortable placing offer on line myself. What should I do?

There are open houses that take place during the offer/on-line negotiations process. During these times, the listing agent and/or his assistant will answer your questions and help you to enter the offer on the computer set up in the house.  You can also an email to help@cimpler.com at anytime.

13. Can I call the Listing Agent or see the house once the on-line negotiations process starts? 

Yes you can. You can talk with Listing Agent as it is in the conventional sale process.  You can come to any of the open houses and/or ask your agent to see the house at another time.  

14. How long is the on-line negotiation process?

It varies and is at the discretion of the listing agent.

15. Is there a minimum offer price?

 There is no minimum offer price.

16. How do you insure that there are no “funny offers,” for example can I offer $10?

There is no rule against it.  However, to be considered seriously, as in the case of conventional offers, you should be pre-approved.  We believe that once you are pre-approved, you are a serious buyer. If you want to have some fun and offer an unrealistic price – go ahead – we don’t mind. We all can use some lighter moments. And to make sure viewers know which offers have been pre-approved we highlighted them in green.

17. Who decides which offer is better? 

The Seller, with assistance from the Listing Agent, will make the decision. For example, a higher down payment or shorter closing escrow time might be more important for the seller than the higher offer.

18. Who am I negotiating with, the Seller or Listing Agent?

You are negotiating with the Seller via the Listing Agent.  The Listing Agent replies to all offers, questions and comments based on instructions from the Seller.

19. Beyond the sale price, what am I negotiating?

Initial conditions are listed in the table on the bidding page. These conditions are sales parameters that are set by the Seller and Listing Agent.  Some of these can be negotiated and changed by the bidder.

20. Tell me more about conditions.  

Conditions are always a part of a real estate deal, but buysquarefeet.com allows you to easily customize the conditions on-line.  Keep in mind, some conditions are firm and can’t be negotiated.  Here’s an example of a set of conditions: 

    1. Deposit receipt equals at least 1%.  (This condition is negotiable.)
    2. Down payment is a  minimum of 10%.  (This condition is negotiable.)
    3. County Transfer tax set to be paid by Seller. (This condition is non-negotiable)

21. How can I negotiate conditions?  

If conditions are marked as customizable, you can modify them in your offer. See the demo at  www.buysquarefeet.com.

22. Tell me about the offer contract.

Cimpler Real Estate, owner of buysquarefeet.com, uses the standard California Association of Realtors (CAR) agreement. 

23. Can I use another contract, like the PDRS contract?

YES, you can use CAR or PRDS contracts.

24. Can I change / negotiate the initial conditions?

You will see that some of the spaces are already filled in on the CAR contract.  These are conditions pre-determined by the Seller and Listing Agent and are not negotiable.

You can negotiate the other conditions on-line.   Additionally, you can request for an item to become a condition.  (For example, if you suggest the walls in the bathroom be painted before you move in, they Seller may choose to make that a condition.) 

If your offer becomes the winning offer - meaning the Seller presses “I ACCEPT” to your offer - the negotiated conditions will be transferred to the CAR contract and you will receive a copy of the contract by email within 24 hours.

25. Is my offer binding?

Yes, it is. If the Seller accepts your offer, it is binding. 

After Making an Offer

26. How will I know that Seller has seen my offer?

Once you place your offer, it immediately shows up under “Pending Offers.”  Once the Seller views your offer, it is either moved to “Past Offers” or is made the Seller’s “Favorite” offer.   The Seller may choose to comment on your offer; these comments will appear beside your offer handily under “Comments.”

27. How long will I have to wait to see an acknowledgment from the Seller?

Good question.  The acknowledgment time limit is set by the Seller and Listing Agent before the negotiating process opens. The suggested time limit for Seller to respond via Listing Agent is 12 hours.

28. What happens if seller does not acknowledge the offer during the specified time limit?

The offers will automatically be suspended.  You will see an “Offer temporarily suspended due to… “ notice on the website.  Once the Seller acknowledges the offers, the suspension will automatically be lifted.

29. I see a message that the offering process was suspended. What does it mean?

See previous question.

30. How long will my offer stays valid?

Your offer will stay valid until it is accepted by the Seller or until on-line offers close.

31. What happens at the end of the negotiating process?

The conventional escrow process starts. All conditions have to be removed for the escrow to close. The buyer whose offer was accepted will receive a copy of the CAR purchase contract reflecting the offer and its results.

32. Can I hire an agent to help me close the escrow after I win the house?

Yes you can. You can find your own agent (though the Seller may have to pay the full agent commission) or may use a Cimpler Real Estate, owner of buysquarefeet.com, agent for a fixed fee of $2000.

33. What happens if no offer is accepted by a Seller at the end of the scheduled offer time?

There will be a possibility for interested buyers to meet with the Seller and Listing Agent to present offers in person. The meeting will take place on the Monday following the close of the offer/negotiation process, which will be a Sunday.  Information regarding this meeting will be posted on the website.

34. Can I “bail out” from the purchase during the escrow?

Remember, the contract is binding and enforceable.  But with any real estate contract, if the conditions are not met, there is a way out.

Selling a Property

35. I am interested in listing a property on buysquarefeet.com.  Who do I contact?

Contact Cimpler Real Estate, owner of buysquarefeet.com, at customerservice@cimpler.com or call 800.890.2240 x500.

36. Do I have to use a Cimpler Real Estate agent to have my property listed?

No, you do not.  You can choose your own agent.  If you have an agent, have your agent contact Cimpler Real Estate.  If you’re interested in using a Cimpler Real Estate agent, call 650.401.7278.

For Agents

37 . What else should agents know?

1) The listing agent sets up the commission as well as the length of time the property will be listed on BuySquareFeet. A property can be listed as soon as it is posted on an MLS and active for as long as the agent wants it to be.

2) All offers are valid for the entire period of the on-line sale (see above)

3) All offers become invalid at the moment an offer is accepted by Seller.

4) A listing agent can decide for offers to be exclusively on-line for a period of time, or accept conventional offers and on-line offers in parallel.

5) CAR or PRDS contracts are generated automatically based on the conditions of sale as negotiated on-line.