Every Realtor dreams of having multiple offers on their listing. The chances to close the deal increase and you usually will get a good price for your seller.
However, if you don't have a good strategy in place, this dream situation can turn quickly in to a nightmare. If you do not follow all the steps in the right order or do not communicate properly, you might be perceived to favour one party over the other. This could potentially be a public relations disaster.
There is no right answer to the best way to handle multiple offers, simply because so many different scenarios exist - as in, how many different agents are involved? Is one of the offer from your own buyer? How many are there? And the list goes on and on.
I was recently involved in one where one of the agents accused me of using delaying tactics to present his offer to my seller. He faxed me his offer in the morning and wanted me to present it for him. The offer was quite low and I told him that it's not even worth presenting since my seller has told me what his bottom line is. But I will present it just in case they have changed their mind. I called my seller, at work, and we agreed to meet in the evening. Just before I was to leave and meet my client, I received a phone call from another agent advising me that he will be faxing me an offer in the next few minutes. Now we have a multiple offer situation. I quickly called the first agent and told him what was going on. He became upset and accused me of using delaying tactics even though I explained to him that I could not present his offer in the morning because my client was at work and it was me who actually convinced him to see it in the first place because it was so low. He quickly realized his misperception and things turned out ok.
Therefore, in a multiple offer situation, it's imperative that we do the right thing and have our clients best interests at heart and make sure all parties a treated with fairness. Your intentions have to be visual, audible and tactile. Here are some tips on how to handle multiple offer situations.
Present the offers in the right order
Present offers in the exact same order that you get them. Not only is this a question of ethics, but even if your intentions are in your clients' best interests, "sitting" on an offer can be misperceived in many different ways.
Make sure your buyers understands what they are getting into
If you are the buyers agent and you know that multiple offers will be presented, encourage your client to really think their offer through. If there is a bidding war looming, potential buyers may not get another chance to bid on the property. This is not high pressure sales-it is a statement of fact- and should be presented as such- and clients that are really keen will likely draw the same conclusion.
Communicate - Communicate - Communicate
People appreciate honesty. In an intensely emotional situation like the sale/purchase of a house- with the added intensity of multiple offers- trust is a big issue. Avoid fallout later by being up front about everything now.
Remember too, that despite best efforts, in a multiple offer situation, there will always be someone leaving the table unhappy-and you have to be proactive throughout the process, by communicating- and by forewarning people- to minimize finger pointing in your direction when the deal is done.
Always have a backup plan
As a sellers agent, from the sea of offers, have a front runner- but don't dismiss the others. Things can change, or fall through- it pays to have a back up plan, and in this case your backup plan comes from the other offers sitting in front of you. Empathize with buyers whose offers are rejected as well, its all part of networking for the future.
Money is important - But consider eveything
Don't encourage your client to accept an offer strictly based on price- consider other elements of the offer. Are there conditions? Are there items in the property that the buyer/seller want included or removed? The value of an offer must be evaluated based on everything the seller wants, not just the dollars and cents.
Advise, but don't direct.
The decision to accept or reject offers is ultimately down to the seller. Even if they may be leaning in a direction that you don't agree with, you must represent them to the best of your abilities. You can suggest, certainly- many clients are counting on you for advice- but don't call the shots. This too can be misperceived.
Great work today- more business tomorrow
Understand your client and try to look at your actions through their eyes. Always be mindful of the deal at hand- but meanwhile be laying the base for future deals through referrals. The client that trusts you - and is satisfied with the transparency of your service to them, is the client who will recommend you to others.
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