I was searching for a topic to write about and after this weeks activity and personal experiences with clients in this market, it was easy to decide.
The title says it all, no one likes a ticking clock, especially when deciding to put an offer on a home.
Purchasing a home, is “usually” a clients single most expensive purchase in their lifetime, as well as their most emotional transaction. So add in the volatility of the sellers market, and you have a stressful situation on your hands.
Part of what I think is one of the most important parts of what an agent does for their buyer, is preparing them for all possible outcomes, and having a strategy to avoid a multiple offer situation. Let me explain that a little bit, you see in today’s market, successful and top producing agents have strategies in place to attract the most interest on their listings. One of the most commonly used at this current time is holding off offers until certain date. This is USUALLY after half a week of showings, and a weekend of at least one open house. This allows the home to have as much exposure as possible.
A way to overstep this strategy is to put in whats called a bully offer. (I hate this term btw) To me this is somewhat ridiculous, because if a home is being offered for sale, a sign is in the lawn and it is on my system for showings, you are entitled to put an offer in WHENEVER it arises. But I do understand a selling agents perspective, they only want to get the BEST offer possible for their client. In any case, the bully offer needs to have 5 things in order to be a “good” offer that will likely be accepted.
- Over ask ( The most important, if you want to get ahead of the multiple offers, you must offer more)
- Limited conditions (This is were you saw buyers throw all caution to the wind last year and remove all sorts of important conditions to win the bid, and people are still doing this!!!!)
- A good deposit (5k or over generally speaking)
- Closing date matching sellers request
- A short irrevocable (This is where the term bully comes from, giving the sellers a short time period to decide, boot to neck situation)
So this is where being aggressive with the offer part comes into play, and while I am always professional, my goal is to win the bid, and at the lowest price possible for my buyer client. Why on earth would you have someone represent you that wasn’t looking out for your best interests? Part of that is negotiation and everything falls into a timeline that cant be ignored. No one wants to have to make a somewhat quick decision, let alone a very expensive one. But in certain circumstances it is crucial in getting ahead of the action. In this market I feel its the realtors job to have a tough conversation about what to expect when the right property comes up. This way they don’t miss out on the house they want in the end.
This week a few of my buyers experienced this, and how fast everything can happen. No one wants a buyer client to have to lose a home they want, just to learn that this market is cut throat. Its like having your first child, it doesn’t matter what anyone tells you about parenthood, its only until you have experienced it first hand that the reality of it really sinks in.
Looking forward to Monday, a fresh week is on the horizon and I have feeling its going to be a good one!