5 Myths About Multiple Offers...

By
Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642
https://activerain.com/droplet/WG9

1. If you talk to the homeowners and attempt to build rapport you will have a higher likelihood of winning your bid.

Odds are you won't offend the Seller too much if you try and hold a simple and quick conversation while viewing their home. Unfortunately not all Buyers and Buyers Agents have the ability to keep their mouths shut when it matters the most. Some Agents and Buyers lead into conversations that they shouldn't be having. Before you know you it, you've offended, annoyed or made the Sellers uncomfortable. Something as simple as talking about your Alma Mater or a recent vacation to a communist country could prove to be disastrous. Keep pleasantries simple and kind. There's no need to discuss the origen of Oriental rugs and how sweatshops in Cambodia are the reason our economy isn't doing better especially since "you know who is in office." And the Texas Aggies hate the Longhorns.

 

2. If I submit a kind letter about the house about how wonderfully it's been kept I'll hit a soft spot with the sellers.

Not necessarily true. It's not even a matter of fact that this letter will even accompany the offer to the Seller. If a letter is attached to the offer in attempt to emotionally sway the Seller then the Listing Agent will likely forewarn a Seller about its intent. This could lead to slight resentment by both the Seller and Listing agent. It happens. Not everyone will bend or appreciate flattery while negotiating on such a large investment.

 

3. Cash is King. I will win the bid because I have cash. I'm awesome.

You might be awesome, but using cash won't get you the keys to the city. It may not even get you keys to the house. First, it's critical you have liquid cash, not money tied up in an investment account. Your money better be local and not tied up in another country waiting to be delayed and messed with by red tape, The Patriot Act and who knows what else. Someone with a Conventional Loan could easily topple your cash offer, especially if they are more willing to bend on "terms." Perhaps the buyer with a conventional loan offered a leaseback to the Seller even though they didn't ask for one. Hmmm.... many people don't think about that, but he who asks first, usually wins. It helps to offer conditions to the Seller before they have asked themselves. Sadly, some Listing Agents don't think about a Seller Leaseback until a week before closing. Perhaps a buyer with a conventional loan has offered to clear up inspections within 3 days instead of 10. TERMS and CASH can be King.

 

4. My kids go to school with the sellers and we both are Dallas Cowboys fans. I used to play golf with the Sellers and they like me.

None of this matters. It may not even matter that you are related. When it comes to money you can fuggedaboudit.

 

5. The Listing Agent is with RE/MAX and my Buyer's Agent is with RE/MAX.... surely they'll make this happen since RE/MAX gets all the commission.

It doesn't matter. Each office is independently owned and operated. ME, MYSELF and I get my cut. My Broker/Owner get's her cut. It doesn't matter if another RE/MAX office is involved or not. RE/MAX itself isn't getting paid anymore or any less.

 

 

Posted by

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Kate McQueen 06/04/2013 09:23 AM
  2. Cheryl Ritchie 06/04/2013 03:37 PM
  3. Debbie Cook 06/06/2013 02:49 AM
  4. Kathy Schowe 06/09/2013 06:30 AM
  5. Winston Heverly 07/09/2013 01:44 AM
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Rainer
37,982
Joe Pruett
Bank Plus Realty, Inc. - Pembroke Pines, FL

Several months ago, I found myself in the private company of a complaining seller while my buyers viewed his home.  He was paranoid that buyers were out to get him via their inspectors as he perceived had been done before and it turned out he didn't like his listing agent either.  So I just listened and my likable buyers met him and a little bond was formed.  I don't use coercive tactics, but you don't want to avoid a seller if the opportunity presents itself either.  Turns out my inspector, out of all the inspectors in my area, was one that offended him, so I moved to another one and it all worked out. 

Jun 05, 2013 01:15 AM #42
Rainmaker
528,317
Martin Kalisker
Greater Boston Association of REALTORS - Boston, MA
Professional Standards & Legal Assistant

For some people, buying a home is an emotional issue.  For others, it's just business - make the most out of your investment dollars and hope for the best.  Any competent real estate agent will be able to assist the buyer or seller in filtering what is relevant and what is not.  Unfortunately,  the advice of many competent real estate agents is simply ignored by the client and because we have to follow the lawful instruction of our clients, we end up submitting these silly letters to sellers against our better judgement.  We get our reputation from the clients we represent - maybe its time to clean house a bit and put our foot down when seller and buyer requests go awry.

Jun 05, 2013 01:37 AM #43
Rainmaker
303,933
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

I disagree with your second suggestion.  I'm working with a flip-investor and despite all the 'cash-is-king' talk, he does like to have some personalities come through in the offer process.  It's actually quite helpful when there's a long list of offers (we are in a very competitive seller's market) and all the offers basically pencil out the same.  Of course, a letter doesn't guarantee an acceptance but it did make a difference in a few situations.  He countered one veteran with seven kids (two adopted) and the deal was done.  There was a higher offer but the personal situation with the veteran (and the vet's agreement to go higher) made the difference.

Jun 05, 2013 01:46 AM #44
Rainmaker
441,983
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

Great Post - Lots of things in here that buyers just don't think about - Focus on the Sellers BOTTOM LINE and forget the other stuff!

Jun 05, 2013 01:52 AM #45
Rainmaker
370,513
Travis "the SOLD man" Parker; Associate Broker
iXL Real Estate-Wiregrasss\ - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Good list. I like the reminder about being 'friends' with the owner (directly or indirectly).  $$$ are the best Friend!

Jun 05, 2013 03:14 AM #46
Rainer
288,479
Thomas McCombs
Century 21 HomeStar - Akron, OH

Myths usually have some basis in experience. They became myths for a reason.

But that does not mean they are true or reliable. Each experience is different, and the experienced Realtor knows when to use  any of those things that might create an advantage for her buyers.

Jun 05, 2013 04:12 AM #47
Rainmaker
1,431,397
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I had a buyer get the house because he struck up a conversation with the seller, they had a lot in common and hit it off.  One of my sellers took an offer because the liked the buyer.  Of course they were both short sales where price was not the main issue.

Jun 05, 2013 05:13 AM #48
Rainer
287,409
Jon Karlen
Finish Line Realty - Shelbyville & Louisville Ky Real Estate - Shelbyville, KY
Louisville & Shelbyville Kentucky real estate

Great list about multiple offers!  Thanks for sharing! :)

Jun 05, 2013 06:26 AM #49
Rainmaker
689,550
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

A buyer of mine won a multiple offer situation because I wrote that he was a fireman. The seller's deceased husband was a fireman. Sometimes a letter with an offer does pay off ... just sayin'

Jun 05, 2013 07:11 AM #50
Rainer
301,104
Lehel Szucs
All Seasons Real Estate, Inc. - Covina, CA
REALTOR of choice

you make some very good points ... still always worth tryng some fo those tactics for the 2 or 3% of the time that they work ... I had a letter work once out of countless times ... but the buyers felt better adding it to the offer ... the bottom line is tha tthe buyers ususall want their highest net  ... good post

Jun 05, 2013 02:07 PM #51
Rainer
177,029
Ann Wilkins
Golden Gate Sotheby's International Realty - Oakland, CA
Oakland, Berkeley, Piedmont CA

I agree with several of your myths, especially the all cash.  If you have a stong financed buyer who is comfortable taking off their financing and appraisal contingency then you are really better than an all cash offer since they don't have the "all cash arrogance" that  occurrs.  However, I have had clients get a house because they wrote a great letter.  The seller's gave them a chance to raise their offer. 

Jun 05, 2013 05:53 PM #53
Rainmaker
982,163
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Greg - GREAT POST!  You've shared some key reasons why multiple offers require some outside the box thinking.  Good for you!  I love the lease-back idea as that is a key element sometimes when primary sellers are looking to buy another home and need time to move.  One of my home buyers just did that for the seller. Worked very well.  Kudos and congrats! 

Jun 06, 2013 03:45 AM #54
Ambassador
1,510,157
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Has anyone told you how awesome you are lately Greg?  Great way to bust the myths!

Jun 07, 2013 09:27 AM #55
Rainmaker
1,087,065
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

You have! Thanks, Renee!

Jun 08, 2013 03:49 AM #56
Rainer
143,845
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

Love your post. You are always refreshingly frank and occasionally irreverent!

Though I like to send a short "buyer thumbnail sketch" along with the offer, it's not a sickly sweet flattery of the house. Better to demonstrate the buyer is WILLING AND ABLE to purchase.

Buying and selling a house is a business transaction with each party to aspire to what they want or can handle.

That said, if the parties' view of each other is FAVORABLE, the rest of the deal will be more smooth. How do you get to be viewed favorably by the other side? Don't act like a jerk every time an issue comes up!

Jun 08, 2013 10:14 AM #57
Ambassador
3,681,846
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hey, Greg!  I included this post in today’s Last Week’s Favorites.  Please drop by and check it out, and and have a terrific week!

 

Jun 08, 2013 11:28 PM #58
Rainmaker
3,199,445
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I saw this post from Patricias last weeks favorites/wrap up....glad I didn't miss it!  Thanks for sharing!

Jun 09, 2013 12:31 AM #59
Ambassador
910,716
Kathy Schowe
California Lifestyle Realty - La Quinta, CA
La Quinta, California 760-333-8886

Great post Greg... you are right on here, these all apply to markets across the country!  K

Jun 09, 2013 06:23 AM #60
Rainmaker
851,933
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

We have so many offers on each home all over value.  It is good to have some idea what to do.  Thanks for the blog.

Jun 09, 2013 06:39 AM #61
Rainmaker
1,500,632
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

These days many agents try to use all kind of blows and whistles to win during multiple offer situation and sometimes they are successful~ so why not to try? Yet, if you did not win, you would never even know if your offer was presented. Unfortunately, here in Cali, there is no specific law or code of Ethics provision that requires a seller to sign a rejection or even inform the buyer that the offer has been rejected.

Oct 15, 2013 06:11 AM #62
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Greg Nino

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Providing Real Estate Advice 7 days a week!
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