What advice would you give to the buyer if you were in a Multiple ...

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/4ksy

What advice would you give to the buyer if you were in a Multiple Offer situation?

Often times we are in a competitive situation and we need to help the buyer get the property. What do you say to the buyer?

My answer is very simple to this question. I tell the buyer when they are in a multiple offer situation simply decided what is it worth to them to get the property. If they offer let’s say $5 or $10,000 above the asking price it should be the amount that when they go to sleep tonight and wake up in the next morning and they did not get the property and they will not feel bad, that they should have offered more. They are happy they gave the best offer i.e.: what they thought it was worth for them to get it for.

Needless to say I was thrilled that the Seller chose my buyer’s offer even though she only went  a little over the asking price i.e.: only $6000 more. The seller and the agent liked her Credit Score… over 805 FICO and a large down payment.  Clearly this was a winning formula!

Sadly this is not always  the case. This time it was and both buyer and seller were thrilled!

 

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Playa Vista, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Will Nesbitt 07/15/2014 06:03 AM
Topic:
Real Estate General Information
Location:
California Los Angeles County Los Angeles
Groups:
Military Relocations
Almost Anything Goes
Local Expert
The Referral Network
LATE NIGHT - EARLY MORNING AT ACTIVERAIN
Tags:
first time buyers
los angeles realtor
multiple offer situation
westchester realtor endre barath
what advice would you givelt endre barath

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,393,708
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Endre -- that's a perfect question(hmm, maybe because I also ask it too) to ask of buyers whenever they are making an offer but especially in a multiple offer situation.   Their response to the question often tells us their motivation on any particular property.

Jul 13, 2014 05:20 PM #1
Rainer
389,343
Anna Hatridge
Goodson Realty - Farmington, MO
Missouri Realtor with Goodson Realty

Endre, you follow the same formula I use with my buyers. Never offer more than the home is worth to them.  Like you, I feel this eliminates buyers remorse. 

Jul 13, 2014 05:33 PM #2
Rainmaker
1,269,369
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good morning Endre,

If the "price is right" everyone will be happy. Oh as long as it appraises!

Make yourself a great day.

Jul 13, 2014 09:13 PM #3
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

I would think having fewer or no contingencies and a quick or flexible close would also be to their benefit.

Jul 13, 2014 09:29 PM #4
Rainer
194,104
Chad Felter
Virginia Beach, VA
Providing service through out Hampton Roads

Be realistic about the value. Not just price but the situation and don't get to attached to the property. Be aware that this may not be the place for your clients.

Jul 13, 2014 10:37 PM #5
Rainer
411,119
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Yes, Endre, you are right on target with this approach.  You or I will not be owning this home, the buyer will, and they need to be happy about their decision.

Jul 13, 2014 11:43 PM #6
Rainmaker
241,327
Bette Gottwald
UNITED REAL ESTATE | Central PA - Mechanicsburg, PA
"Bet"on Central PA Real Estate!

Endre, Increasing the earnest money deposit is often helpful, along with no contingencies. 

Jul 14, 2014 09:20 AM #7
Ambassador
670,249
Rene Fabre
First American Title - Seattle, WA
Marketing in the Digital Age

Hi Endre... So, yay! Both sides are happy. I like your take on multiple offers. Sounds simple, I know it's not always easy for the buyer to do, but really... just ask how much you think it's worth and what it's worth to you and make the offer. And, you will sleep better. 

Jul 14, 2014 11:30 AM #8
Ambassador
3,983,611
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You know how to navigate through these competitive situations. Great job and I know you your buyer is happy, happy.

Jul 14, 2014 02:01 PM #9
Rainmaker
4,797,811
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes, Endre, in multiple offer situations the buyer does not have the luxury of trying to get 'the deal'.  He/She must be prepared to pay the price they are comfortable paying.

Jul 14, 2014 10:12 PM #10
Rainmaker
5,466,282
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Home buyers need to be well prepared for multiple contract competition. Strong buyers have the advantage.

Jul 15, 2014 09:55 AM #11
Rainmaker
1,124,544
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Endre - The words "Multiple Offers" are not words a buyer likes to hear, but when they get that news you've given some great advice for them to follow!

Jul 16, 2014 10:22 AM #12
Rainmaker
536,699
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Endre, It is nice to see you sincerely enjoying your buyers success.  Your guidance/advice was appreciated I am sure.  

Jul 19, 2014 07:09 AM #13
Ambassador
995,321
Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate

Good post and I tell my clients to put in their highest and best. So glad that your clients were able to purchase the property!

Jul 19, 2014 07:59 AM #14
Rainmaker
3,222,132
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael you are so right often we can gauge their motivation level...

Anna I never want to have the buyer feel bad...after they miss out on  a few they get with it or they get out of the game...

Raymond well said as long as it appraises...

Jul 19, 2014 03:47 PM #15
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
3,222,132

Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
Ask me a question
*
*
*
*
Spam prevention