Ready, Willing, and Able
Definition
Ready, Willing, and Able: In the context of real estate transactions, the term “ready, willing, and able” refers to a prospective buyer who meets all three of the following criteria:
- Ready - The buyer is prepared to make an offer and pursue the purchase.
- Willing - The buyer is committed to fulfilling the terms of the sale.
- Able - The buyer has the financial capability to complete the transaction, including securing necessary financing if needed.
This concept is fundamental in broker-client agreements because a broker earns a commission when they bring a buyer who correctly fits these criteria, even if the sale does not ultimately go through due to the seller’s unwillingness to sell.
Examples
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Example 1: A Smooth Transaction:
- A broker lists a family home. They find a buyer who has secured a mortgage pre-approval, is ready to make a competitive offer, and agrees to all listing terms. The seller accepts, and the sale proceeds smoothly. Here, the buyer is clearly ready, willing, and able to buy the property.
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Example 2: Commission Dispute:
- A broker identifies a qualified buyer who meets all the property listing’s terms. However, the seller withdraws the property from the market without a valid reason. Despite not finalizing the sale, the broker is entitled to their commission since they presented a buyer who was ready, willing, and able.
Frequently Asked Questions
1. Who determines if a buyer is “ready, willing, and able”?
A combination of the broker’s assessment and the seller’s verification helps determine if a buyer meets these criteria. Documentation like mortgage pre-approval and readiness to sign contracts are typical indicators.
2. Can a broker still earn a commission if the seller refuses to sell?
Yes. If the broker presents a buyer who fits the ready, willing, and able criteria, the broker has fulfilled their duty under most standard listing agreements and is entitled to their commission even if the seller decides not to proceed.
3. What happens if the buyer eventually cannot secure financing?
If the buyer initially appeared able but later cannot secure financing, the situation may lead to a dispute. A broker should ensure the buyer’s financial capability through pre-qualification or pre-approval documentation to avoid such conflicts.
Related Terms with Definitions
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Qualified Buyer: A prospective buyer who meets the financial and personal criteria to purchase a specific property.
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Listing Agreement: A contract between a real estate broker and a homeowner that authorizes the broker to act as the seller’s agent in the sale of the property.
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Broker Commission: The payment a real estate broker receives for facilitating the sale of a property, typically a percentage of the sale price.
Online Resources
- National Association of Realtors (NAR) - Website
- U.S. Department of Housing and Urban Development (HUD) - Website
- Real Estate Business School - Resource Center
References
- National Association of Realtors (NAR)
- The U.S. Department of Housing and Urban Development (HUD)
- Real Estate Brokerage: A Guide to Establishing a Successful Broker Practice
Suggested Books for Further Studies
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “Success as a Real Estate Agent for Dummies” by Dirk Zeller
- “Your First Year in Real Estate: Making the Transition from Total Novice to Successful Professional” by Dirk Zeller
- “The Millionaire Real Estate Agent” by Gary Keller
