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.