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NEW IDEA TO GET BUYERS OFF THE FENCE!

I have had more than one buyer fence sitting. Why? I have asked myself that a lot. I think it is fear. Fear of paying too much. Fear of prices dropping more. The problem is nothing happens. They are not motivated to get off the fence. It is like bungee jumping. Looking over the edge fear keeps people from jumping.

Next time your out why not try writing offers on three properties your buyers like. An agent in our office is doing this with great success and gave me the idea. Be careful and put a contingency stating your actions. Tell the sellers that your buyer chooses which offer to accept. (Check with your principal broker for language to use)

This does three things. It tells sellers that they are not the only game in town. It gives the buyer freedom from fear because they get to see who is willing to sell. Third, it gives the listing agents that don't win cloat beacuse at least they have an offer and sometimes they can negotiate that price reduction then.

Once we jump it feels good and the elation sets in.

Posted by Trevor Elliott on 11/25/2008 03:14 PM

Comments (17)

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fence sitters, buyers, offers, fear

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17 Comments on NEW IDEA TO GET BUYERS OFF THE FENCE!

NOV

2008

Love the idea and appreciate your creativity!

I think the # 1 reason buyers are sitting on the fence is their lack of commitment to make a purchase, any purchase. There is too much uncertainty today. Uncertainty about the economy, uncertaintly about the new administration and ultimately, uncertainty with regard to job stability.

I am an optimist and I continue to look for opportunity in these uncertain times, but a buyers lack of commitment to purchase at all has been my biggest problem these days!

Trevor, I think the main reason people in my area are not making offers is because there is no urgency. There's such a glut of inventory that buyers feel like they can wait as long as they want. I like the idea of three offers. I will try it if I get another serious buyer instead of just lookers.

That could actually have worked with one of my more difficult clients. Too late now but I will keep that bullet in the chamber. Thanks

Uncertainty is right. My father in law tells me stories about oppurtunities he had and uncertainty. Hind sight is 20/20. I think we have to ask ourselves is uncertainty holding us back from oppurtunity?

This is a great idea, I will pass along to my realtors.

Interesting idea you present, Trevor. I assume this is something that works for that agent otherwise you wouldn't mention it. Something to consider...

Trevor,

Interesting post. My question would be if you have two out of the three seller's bite on the offer, you now technically have two executed contracts. Including language that varies from a standard contract can open up liability issues. In Texas, the only people that make changes to the contract is the buyer or an attorney. Acting as an attorney and not being one is a great way to lose a license. Proceed with caution. Good post!

Interesting idea, so the buyer writes on more than one home with a contingency that if any or all accepted or countered, the buyer reserves the right to to choose which house wins? As long as it is well written could be successful for a buyer agent to do this.

What a concept! Kind of like multiple offers on the back end....Dealt with multiple offers on seller's side, but never buyer's side...This could be the wave of the future for buyers!!

Depends on the buyer. On a buyer that is not moving up, research Warren Buffet's statements either on Google or my blogs. He makes a comment that he is buying as much as he can now. Why? He says that he does not know if the bottom is now, next month, 6 months or a year. But the market will be going up and going up substantially. Predicting the market is foolish as one is usually 3-6 months behind the gun before we realize we are in a bull market. The stock market has gone up the last couple of days. Does that mean the bear market is over? Obviously that is impossible to answer. As Warren says "If you are waiting for the Robins, Spring will be over".

We are selling alot of move ups.....alot. Why? Take the loss on the lower price home and make it up on the higher priced home. We just had a client that bought a home at $131k below asking....and now they are reducing their selling price $50k below our recommended pricing. It works and it is in your client's benefit. $80k usually gets people off the fence....unless they don't like money....

Indeed it is a great time to move up. Now if the material prices would come down I would build my next house. I expected them to start coming down since the building starts are way down in my area. Maybe they will be down come spring.

Jeremy,

Don't change the sales agreement. Make a provision or contingency stating you have written multiple offers. State in a contingency that the seller acceptance is not mutual acceptance and that the buyer will acknowledge or accept the offer the buyer chooses.

NOV

2008

Jeremy - creative idea - come up towards West Linn or Portland with those buyers if you can't get them off the fence in Salem - I'd welcome one of those offers. How about writing one up on this one?

NOV

2008

The problem in S. California is we have to write up to 10-15 offers at once sometimes to get one accepted. The market is moving fast and we have seen closings go from around 6500 in July to over 15,000 in October. The REO market is driving the sales and buyers are in fierce competition to get into a home.

DEC

2008

I like the idea. It would certainly help to get an example of how to write this contingency. Do you mind sharing your contingency write up?

DEC

I love this idea. I think I have some buyers right now that this might work for. I would also like to see how you're writing this contingency if you don't mind.

DEC

Great technique! This multiple choice idea may work for all kinds of things. Thanks for the card a few weeks ago.

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