Obviously a non-binding offer is an offer that isn't binding. But beyond the semantics - what is it really?
Two of the condo projects in our area, one that recently filed bankruptcy (Opus South who has 400 Beach in downtown St Petersburg and Water's Edge in downtown Clearwater, as well as others) and one that hasn't filed bankruptcy. They are single sheets of paper where a buyer makes an offer on a particular condo unit. The "buyer" is not required to put down any deposit or earnest money and obviously neither the buyer nor the owner is committed.
So what's the point? To me, not only is this encouraging low-ball offers, but there isn't a way for the developer and/or lender to know if even the low offers are real. How do you know the offeror is serious, that he's qualified to buy? How do you know if the offer is accepted if the "buyer" will really close on the unit?
There must be a better way. Hmmm - what about a typical offer? The buyer isn't committed until/unless the offer is accepted, but there's usually an earnest money deposit, and if the seller accepts the offer, the buyer is committed. Why the new non-binding offer? Protecting the seller/owner? Well - if the seller doesn't accept the offer, he isn't bound anyway.
Hmmmmmmm, doesn't seem to make much sense to me!
Sharon I gave somebody your name the other day who was looking for an agent down there. It was a freebie. Hopefully he'll call you soon.
Hi Sharon. If those condos were new projects there may be legal reasons the offers are non-binding. While I certainly can't speak for Florida, here in Hawaii non-binding offers are required by law until the developers public report is issued.
Sharon - Does it have to do with reservations? Even around the Emerald Coast, there is a deposit with a reservation for a new construction condo. I agree, even with short sales, I advise my seller we better get a deposit, or shoud I say "especially" with short sales, and all sales. The buyer has nothing in the game- the buye walks.
Russ - thanks! No one's identified themselves with you so far.
Richard - interesting differences between states.
Wendy - there's a deposit with reservations here, too. This is an unusual situation.