A Sticky Situation - How do YOU handle it?

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Services for Real Estate Pros with Marte Cliff Copywriting

Here’s a question new real estate agents struggle with, especially if they’ve gotten it wrong once or twice.

So… I’m giving my opinion, but since you’re still out there every day and I’m not, yours is more important.

My request is that you seasoned agents chime in with your opinions and experience and help those new agents decide how to handle the question:

Should you tell buyers that there's already an offer on a home they're viewing?

question marks

I believe this is a double edged sword. The answer lies in the personality of your buyers and the trust level you've created with them.

Unfortunately, real estate professionals rank high on the list of professionals that many people don't trust. That means until you've developed a relationship, many buyers will automatically be suspicious if you tell them there's a pending offer on a home you're showing them.

Some will see it as a pressure tactic to get them to hurry up and make an offer - and to make the offer high.

I believe you should mention the other offer before you ever view the house. For one thing, they'll be more likely to believe you if you're simply telling them about it and asking if they want to see it anyway. After all, there are other houses.

For another thing, some buyers want nothing to do with the ";bidding game"; and will not want to see a house that already has an offer on the table. My son is one of those. He just plain won’t bother to look if he knows someone else is already interested.

So, if you show it to them and tell them only after they've shown an interest, they might be very cranky with you. Your efforts to build trust could go down the drain.

At the same time, you do need to explain that just because there's an offer doesn't mean there's a sale. Explain to your buyers that you don't know and can't know what the other offer is. It might well not be accepted. And if accepted, it could fail to close.

If they're really interested in the house they should take a look anyway.

What do you think? How do you handle this situation?

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Rainmaker
5,033,448
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

be honest....be up front and let the cards fall as they may.....it's the buyers choice as to whether they want to see it or not....but make sure you tell them the real situation before they opt to see it....that's how I see that situation.

Jan 01, 2011 09:02 AM #1
Rainmaker
152,435
Virginia Tatseos
Stage-Show-Sell - Bloomfield Township, MI

I'm speaking as an agent who has her license in holding.

Honesty is the best policy.  Tell the there is an offer and they maybe greatful to know before they see it.  They might just go onto the next one or they may choose to see it

 

Jan 01, 2011 09:04 AM #2
Rainmaker
226,979
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO

I'm with Barbara - always tell the truth and before they consider seeing it.  This can often be a good stimulus to the buyer to know they have to act and not prognosticate for 60 days thinking it over.

Jan 01, 2011 09:07 AM #3
Rainer
226,662
Tricia Hoffmann
Your Home Free - Highland Village, TX

Definitely tell them first.  I always tell them about an offer and give them the opportunity to not even see the home. It's the same reason I don't like to show clients homes who still have their house to sell.  I don't want them falling in love with a home that may or may not be available to them.

Many times clients opt to see the home just to "rule it out" and it makes them feel better about themselves and their decision when they don't like it.  

Jan 01, 2011 09:49 AM #4
Rainmaker
1,543,496
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It looks like you all agree with me - tell them first and let them decide if they want to see it.

Thanks for the feedback, and Happy New Year All!

Jan 01, 2011 10:05 AM #5
Ambassador
1,368,734
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

If an agent calls, I would let them know. However, if agents are just showing it, I wouldn't necessarily make that phone call to inform them.

Jan 01, 2011 11:10 AM #6
Rainer
8,988
Michele Hobaugh
Allen Tate Realtors - Charlotte, NC
Broker,ABR,GRI,CRS

If you're going to present an offer, I'd certainly call the LA before hand and find out the "low-down;"   (you wouldn't BELIEVE what some ignorant agents will share if asked!)

 If there is an offer on the table, (in my state of NC) that is material fact and must be shared....Either way, knowing there is an offer still puts u in the knowledgeable position and by letting the buyers decide whether or not they want to get into a "bidding war" allows them to make the decision,....

Jan 01, 2011 02:32 PM #7
Rainmaker
1,543,496
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Loreena - No, I'd think it would be up to the agent to call you, or check MLS to make sure it isn't pending.

Michele - I almost mentioned that - the fact that some agents will tell you far more than they should. Some will even tell you the price.

Jan 01, 2011 06:18 PM #8
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Rainmaker
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