As inventory continues to tighten, the demand from homebuyers is at an all-time high. It’s become very evident over these past few summer months that the real estate market is on fire.
A low supply has resulted in an extremely high demand of motivated homebuyers igniting the real estate market. Because of this boost in competition, sellers have seen a rise in multiple offer situations.
Whether sifting through two or 10 offers, this is not an easy position to be in. If you are a listing agent currently navigating this summer market, here are four things to avoid when wading through multiple offer situations:
Not being humble
First and foremost, remain ethical, honest and open throughout the process.
In multiple offer situations, be upfront with both the sellers and other agents involved. Talk through the offers, and remember that it’s not a done deal until everyone walks away from the closing table.
Maintain good relations with all of the agents and buyers who make offers; you never know if an offer could fall through and lead you to open conversations again with a previous agent.
It’s much easier to reopen a negotiation if you began the relationship right in the first place.
Leaving your seller in the dark
Juggling multiple offers simultaneously is naturally a stressful situation for anyone. Therefore, don’t leave your sellers in the dark.
Although your job is to guide them through the process, you must also remember to educate sellers and keep them in the loop throughout the process.
Encourage your sellers to ask questions so they are on board with the numerous different strategies to be considered.
Walk through each offer with your sellers, and make the decision hand in hand.
Letting your seller get greedy
Be up front about expectations from the beginning. Sellers want to sell at the highest price on the best terms as quickly as possible, but it is important to take a holistic approach to this situation.
As an agent, you have to encourage sellers to look at the entire offer in addition to just the price.
Other crucial stipulations include financing, due diligence, closings costs and earnest money.
A great way to keep things organized from the beginning is to create a side-by-side worksheet outlining every significant part of each offer.
Acting too slowly
Be detailed with your sellers, and let them know the first few offers are often times the best. These are the highly-motivated buyers who have been waiting for your home and will typically move toward the closing table the quickest.
If the original offers do not work out, you can always go back on market. Our advice is to go binding as quickly as possible.
Educate your seller on the potential surprises that can appear when selling a home including a second round of negotiations and buyers backing out freely for any reason during due diligence.
This is a fast-paced process, so be sure to stay upfront with other agents, potential buyers, and of course, your seller throughout to avoid mistakes in a multiple offer situation.
Although at the time this situation may make you want to pull your hair out, don’t let the chaos blind you.
Remember to take time to enjoy the process, and celebrate the win when you walk away from the closing table at last!
Mark Spain is the chairman and CEO of Mark Spain Real Estate in Alpharetta, Georgia, also serving Metro Atlanta and Athens. Follow him on Twitter or connect with him on LinkedIn.
