Securing the ideal home can be a challenge for buyers, especially when there are multiple offers involved. As a real estate agent, it’s your job to help your clients navigate these complex scenarios. While there’s no way to guarantee that the buyer you’re working with will come out on top, there are things you can do to help tip the scales in their favour.
Here are a few steps you can take to help your buyer clients navigate multiple-offer situations…
Get to know the seller
When your buyer finds the home of their dreams, they’ll likely want to do everything in their power to secure it. That means submitting an offer that will grab the seller’s attention, which is a lot easier when you know what they want.
Is selling quickly a major priority? Do they like the idea of helping a young family put down roots in the neighbourhood? It’s not always advisable to ask these questions directly. That said, a bit of friendly conversation with the seller’s agent could allow you to better understand who’s on the other side of the transaction—and assist you in helping your client put together a strong offer.
Know the data
It’s a common misconception that aggression is the key to being a good negotiator. The truth is, one of the best ways to persuade a seller is by knowing the facts—inside and out.
What are the factors impacting the local market—not just across the city, but at the neighbourhood level? When it comes to the home in question, how thoroughly do you know the sold prices for similar properties nearby? This information will allow you to not only back up any points you make with data, but respond quickly and decisively to what the seller and their agent have to say.
Think about financing
In a hot market, your client may find it tempting to forgo due diligence. Whether that means enticing sellers by opting not to get an inspection or bidding beyond their means, your buyer may want to make a move that they could seriously regret.
One of the challenges agents face is helping buyers make a truly informed decision—without being pushy. In a multiple-offer situation, that means making sure your client understands the value of conditions, inspections, and appraisals. This information will enable them to make the right decision (and help ensure that their financing doesn’t fall through).
Think beyond price
Most sellers are driven primarily by price, so it’s easy to forget that some have other motivations. There are instances where waiving a condition, making a cash offer, or suggesting the right closing date can make all the difference.
Finding out what a seller wants out of their transaction is key, but so is maintaining a flexible mindset. When you’re helping your buyer put together their offer, consider the possibility that money isn’t the only factor at play. There’s no harm in strengthening a bid by other means—even if it comes down to the right price in the end.
Be prepared to lose
Despite your best efforts, there’s always the possibility that your client’s offer won’t secure them the property. If that happens, they’re bound to be discouraged. As their agent, you’ll want to do what you can to rekindle their optimism and excitement.
One thing you may want to consider is a backup offer. This step will help ensure that your client is next in line if the buyer can’t sign the subject removal. If you don’t take this tack, ensuring that the person you’re working with feels confident in your abilities is still crucial. Reassure them that you’re on their side—and open their mind to the possibilities that are still out there!