With inventory the lowest it’s been in years, multiple offer situations are increasingly common; Anna Mayer-Huls explains how agents can deal with them.
How many times have you represented a buyer in a multiple offer situation this year? Can’t keep track? Me either. Here are a few tips to keep in mind when entering a multiple offer situation.
1. It is vital to know how the listing agent will be handling the multiple offer situation. Will they be taking initial offers and then asking everyone for their best and final offer? Or do they want your client’s best and final offer right up front?
2. What is the seller’s ideal close date? This is good information to know in any scenario, but even more important when there are multiple offers.
3. Turn in all of the paperwork at the same time. This includes the pre-approval, copy of initial earnest money check and signed disclosures.
4. Let the seller’s know some personal information about your clients (with their approval, of course). This could be as simple as telling the sellers what your clients love about their home and why they chose this particular property.
5. Educate your buyers. Crunch the numbers for them and let them know what their payments would look like at a few different price points. A $5,000 or $10,000 increase in purchase price will only minimally increase their monthly payments.
6. Put your clients’ mind at ease. Tell them that, unfortunately, these types of scenarios are common. It may sound cliché, but I always believe that everything happens for a reason. If they lose out on one property, chances are there may be a more ideal property right around the corner.
7. Inform your buyers during your initial consultation of the current market trends. Let them know that multiple offer situations can happen and explain how you will handle the situation. They may have to get comfortable with paying close to or above the list price.
8. Finally, always call your clients during this process. They don’t want to find out that they lost a property via email.
Good luck agents!
Anna Mayer-Huls is a broker associate with @properties in Chicago. She can be reached at:
1875 North Damen
Chicago, IL 60647