Why Your Offer Didn't Hit The Mark

By
Commercial Real Estate Agent with Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker AZ BR 528507000

Holymoly.

 

Our Mohave County, AZ real estate market has been wild and crazy, to say the least.

 

Despite the surreal Branch Covidian insanity, it's been a vibrant and busy commercial and residential market, with sassy sellers and multiple offers.

 

As primarily a listing broker, I've had to deal with multiple offers in both residential and commercial transactions this recent season, and it somewhat surprises me (not sure why it should, but) how woefully deficient some buyers and their agents have been in demonstrating professionalism and making competitive offers.

 

So many examples, but I'm gonna clue you in on why your offer may miss the mark and cost you the deal:

 

IF YOU KNOW OR SUSPECT YOU MAY BE IN A MULTIPLE OFFER SITUATION . . .

 

Make a clean, complete offer. I know, derp. But I've seen them missing so many spots . . . include the addendums and if you have seller's disclosures (I attach them to most listings) acknowledge and forward. 

 

Show us how you will pay for it. Yes, I know. But I had 6 offers on a property recently and only 2 had loan PQ attached and it is required addenda! We'd be obliged to know who your lender is and how efficient they are in producing the proper paperwork. The way someone does something is how they will do everything.

 

Agents! You are NOT being a 'hero' to your buyers by incessantly bothering the listing agent, demanding immediate response and attempting to negotiate with the seller's agent. Come on, you know they are not the decision maker. If you have a time limit, fine, let us know. ONCE. Too aggressive won't make you the prom queen. 

 

If certain seller terms are excluded, sure you can find out why and if there is any possibility of an exception . . . but sending an offer with special financing when 'cash or conventional' is the only listed term may not even be reviewed and now you've killed a tree.

 

Don't assume that cash is king and lowball the daylights out of the deal. A solid financed buyer IS cash at close.

 

Don't assume you'll get a counter. 

 

Make your offer strong, with a good earnest deposit to start with. I have warned buyers that a low deposit weakens the offer, even though it is 'soft' through due diligence. It will apply toward funds to close and make it look less like you can't really afford the property. 

 

Be pleasant. The listing broker may not decide on which deal, but if you are a known 'problem' might they clue in the seller that this could be bumpy? Oh yes.

 

Spelling, grammar and math count!

 

Anyone have anything to add? 

Stories to share?

 

Right on the target but wide of the mark

What I thought was fire was only a spark

close

Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Brian England 10/24/2020 07:00 AM
  2. Joe Jackson 10/27/2020 11:57 AM
Topic:
Home Buying

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Rainmaker
5,054,630
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Amen,

You are preaching to the choir!  Nothing worse than a complicated offer with contingencies up the yin yang...A

Oct 23, 2020 01:41 PM #8
Ambassador
4,322,300
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Right on target, Candice. There is lots of competition and a poorly done offer that's not competitive (and not just price but terms and conditions, too) will end up at the bottom of the pile. No doubt there are some buyers who still want to try a lower offer despite what they are told by their agent, or assume there will be a counter. Not these days in most cases.

Jeff

Oct 23, 2020 01:55 PM #9
Rainmaker
135,020
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Great post Candice A. Donofrio and in a market like this, very timely. Make it a great day!

 

Oct 23, 2020 02:09 PM #10
Rainmaker
139,369
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Candice, so many good points here. "A solid financed buyer IS cash at close."

online documentation stop killing trees in your market?  My 2009 broker was first in county to do away with file cabinets and go to the cloud.

Oct 23, 2020 05:01 PM #11
Ambassador
4,376,194
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Candice- as they say...go big or go home!  Buying a home is not a game!

Oct 23, 2020 05:22 PM #12
Rainmaker
1,629,302
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Agents need to adjust with the times. A buyer's market is different from a seller's market. And in either one, complete offers and professionalism are requirements.

 

Oct 23, 2020 09:04 PM #13
Rainmaker
3,769,384
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Candace - regardless of market conditions, these things matter and especially when times favor a seller.  

Oct 24, 2020 05:29 AM #14
Rainmaker
1,647,472
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Great points!

And yes, the way someone does something is the way they will do everything. Sloppy up front? Sloppy all along.

Oct 24, 2020 05:47 AM #15
Rainmaker
3,089,430
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Hmm, your mention of branch covidian insanity makes me want to hear more about that, haha.

Oct 24, 2020 06:33 AM #16
Rainmaker
4,017,585
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Candice A. Donofrio ,

Love the title and the way you stated why buyers can lose out when making an offer. Multiple offers are the norm now and better make it appealing, clean and delivered professionally if you expect to be considered! So glad to see this post featured..well done!

Oct 24, 2020 07:44 AM #17
Rainer
429,303
Joan Valverde
HomeSmart - Colorado Springs, CO
GRI,CDPE,CNE,MRP,SRES Colo Sprgs, Blk Forest, Monu

Great post Candice.  With the multiple offers going on, I was talking to my broker about how to write an escalation clause, the listing agent had said this seller LOVES escalations.... where does the seller get that knowledge??? lol  A great comment she made was there is a lot of room for the seller to forget the offer from the price to section 30!  So always best to go in with your best foot forward.  

Oct 24, 2020 08:11 AM #18
Rainmaker
5,470,889
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Candice A. Donofrio .... congratulations  on the well deserved feature.... from start to finish you bottom lined it....

Oct 24, 2020 08:39 AM #19
Rainmaker
1,547,175
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

BINGO!  Why are some (or so many) agents clueless to all of these tips?

Oct 24, 2020 09:15 AM #20
Ambassador
3,405,287
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

You sure don't pull any punches and your thoughts and insight are spot-on Candice A. Donofrio 

Oct 24, 2020 11:17 AM #21
Rainmaker
1,090,662
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

As I am often more a listing agent 60% than buyer agent 40%, I have to agree with all your points as both agent types Candice A. Donofrio Great post!

Oct 24, 2020 11:19 AM #22
Rainmaker
504,418
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Great post! Buyer's agents need to fully explain the current conditions to clients.If clients don't get it, move on to one that does! I have better things to do with my time, than waste it with unrealistic clients!

Oct 25, 2020 04:55 AM #23
Rainmaker
500,255
Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Candace, great summary of the market conditions! Cash Buyers who have realized that they are competing with strong financed offers are in a stronger position. Some conventional loan lenders started waiving appraisals when there is $100K+ down payment. 

Oct 25, 2020 10:56 AM #24
Rainmaker
591,167
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

So true about "being pleasant" as an agent--and submitting a clean offer.  I think the reputation of the agenty makes a big difference.

 

Oct 26, 2020 02:10 PM #25
Rainmaker
2,167,459
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Great post! Thanks for making this content! 

Oct 27, 2020 11:57 AM #26
Rainmaker
910,124
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Candace,  It's hard to believe that agent will submit an offer without proof of funds or a pre-approval.  Here they won't even look at it.  Clean offers are the order of the day. 

Congrats on the feature!

Oct 27, 2020 04:15 PM #27
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Candice A. Donofrio

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