While we continue to wait on a complete market recovery, positive signs are beginning to materialize.
One of them is the emergence of multiple offers. In the last month, we have seen a surge of multiple offers in the New York area. It is an exciting time, but also a stressful one for agents that have not dealt with a multiple offer market in many years.
My advice is always straightforward and is based on managing the expectations of all parties involved.
As agents, we must do what is in the best interest of the client. That necessitates that we maintain an open line of communication. This includes knowledgeable guidance, education on what is being presented and a voice of reason amongst the chaos that swirls among any real estate transaction.
Manage a Multiple Offer Market
Begin with the End in Mind
Everything begins and ends with the listing presentation. It is where the tone of the transaction is set.
Start with explaining why properly pricing the home is so important. The homes that are receiving multiple offers are priced properly according to the market.
I also encourage agents to support their documentation with national news. Discuss what is happening across the country and explain how that impacts their sale from a local level. This will lend credibility and prevent future push back.
When reviewing offers, keep sellers focused on what matters most. Rather than looking at homes within their neighborhood that are still sitting on the market, guide their attention towards the homes that have actually sold. Help them make an apple-to-apple comparison of their property, rather than placing hope in a transaction that hasn’t actually taken place.
It can be very difficult for all parties to take a step back and evaluate the details in a multiple offer situation, especially when the home has been on the market for a significant amount of time.
It is human nature to get excited and want to jump at the ‘highest and best’ offer. However, taking a deep breath and truly analyzing all of the details may show that the best looking offer is not necessarily the highest offer. Sometimes the terms, (closing date) are as important.
As the market continues to shift, what are your best practices when dealing with multiple offers? I would love to hear them in the comments below!