STEP UP or STEP OUT: What Buyers Need to Know About a Multiple Offer Market | The Zebra Blog

STEP UP or STEP OUT: What Buyers Need to Know About a Multiple Offer Market

I have had at least three calls in the past week from frustrated agents who were trying to figure out what they were doing wrong and why their clients lost yet another offer in a multiple offer situation. After long discussions that detailed every step of what these agents did, I was convinced that it wasn’t so much about what the agents did it was more about what the buyers didn’t do.

In today’s highly competitive, fast-paced market, the buyers need to STEP UP to the plate and put their best foot forward with the strongest offer possible.  If today’s buyer is not willing to do that then they need to STEP OUT of the market until they are.

Many buyers do not realize that if they are in a highly competitive market they need to be aggressive with their offer. They may not even know what that means. If your buyer wants to be in the running to win the home of their dreams, then they need to get prepared for the race.

That requires education on your part. I recommend taking apart the purchase and sale agreement and addressing each item that can be adjusted and what terms sellers are looking for. That might mean including a favorable closing date for the seller or addressing what happens if an appraisal comes in low. But once you educate your buyers on what sellers are looking for and they don’t take your advice when writing the offer, that should be a red flag to you.

However, note that all is not lost if your clients can’t come in with an all-cash offer! I have seen many offers lately where the seller chose the buyer who was willing to pay more, regardless of whether that was cash or not. So, if your buyers will be financing, note that price is even more important!

I hate to see agents punishing themselves thinking they did something wrong to lose a multiple offer when in fact the buyer wasn’t prepared to STEP UP and do what they need to do to win.  Imagine if you were a sports agent; you could be representing the best talent in the world but if they aren’t willing to perform at game time you will never win.

Agents need to spend more time preparing their clients for what they need to do to win in this highly competitive market.  Stop blaming yourself and start preparing your client.

You can leave a response, or trackback from your own site.

One Response to “STEP UP or STEP OUT: What Buyers Need to Know About a Multiple Offer Market”

  1. Bill Crumbaker says:

    One of one of the big advantages of an all cash offer is you have no appraisal. Taking the highest price offer may not be the best choice. The key to getting your offer accepted is to try and find out what sellers main concerns are and then making the seller feel comfortable with your offer. The highest price offer is not always the winner.

    One thing I always tell my buyers is try and get the seller to like you
    and that can really help get your offer accepted,

Tell Us What You Think!

Awesome, timely advice for real estate agents. Delivered weekly.
  • Fresh trends
  • Best practices
  • Research and statistics

Enter your email and stay on top of things,