Case Study: Handling Multiple Offers the Right Way
Every seller’s dream is not to only sell their home quickly but at the highest possible price. Even better, you might receive multiple offers so you can pick the best option. That’s the dream, but depending on the agent you work with, it may never happen.
Some real estate agents may advise that you reject a lowball offer immediately. If a second one comes that’s a little higher, they may tell you to jump on that one. That’s one way to do business, but not the way we do it. Take a look at a recent seller we helped so you can see how multiple offers can be handled in a way that’s fair to the buyers and best for you, as a seller.
Our seller, let’s call her Pam, put her home on the market at a price of $699,000. It immediately began to receive a lot of attention. Agents called for showings or to indicate interest. Pam received one offer of $640,000 which was rather low. The agent indicated their buyer (let’s call him Bob) wouldn’t go much higher.
After that, more calls came in from buyers’ agents. Seeing there was real interest here, we got on the phone and let all the agents who’d shown the property or indicated interest in it know we had an offer, but if their buyer really wanted it, to make an offer too. Sure enough, Pam received a second offer. This time for $685,000 from a second buyer, let’s call her Sally.
Most agents would be happy with Sally’s offer and advise their client to take it. Some agents wouldn’t even let Bob’s agent know a higher offer came in. That’s not how we operate. Transparency and fairness are always good for business.
We talked to Pam and showed her both offers. Our advice was to counter both and ask for Bob and Sally’s highest and best offers. Once those were in, she could make her choice. Both buyers would know their offer had been seen and considered, and both would have a chance to try again.
Bob and Sally were given until the next day at 10:30 a.m. to send in a new offer to Pam. At this point, either could have walked away. We already knew from Bob’s agent, he didn’t want to go much higher. But both also knew their offers had been seen and considered by the seller.
The next day, Pam received new offers from Bob and Sally. Sally increased her offer to $695,000 which wasn’t a bad price. The big shock was Bob. Not only did he offer more, he went above the asking price, and put in a bid for $707,000 - higher than the asking price! He really wanted that home
What does this mean for you?
Buyers need to be able to make decisions based on the facts. They may be disappointed in losing out on a home they wanted, but they need to know they were given a fair chance. For sellers, this process allowed us to sell the home for more than the original offers and higher than the asking price. By not encouraging Pam to take the first “good” offer that came in and being willing to communicate with the other agents, we took care of our seller, got a good price, and made sure the buyers didn’t walk away with any hard feelings.
Treating people well isn’t just the right thing to do, it’s good business, too. Ready to sell and want to know your agents will work hard for you? Contact us today. Let’s talk!