Let’s keep going. I’ve still got plenty to say about Multiple Offers. I’m sure I’ll talk myself out in another couple of months. Or maybe the market will shift and there’ll be something else that becomes more important than understanding the complicated dynamic of the multiple offer from all perspectives – Buyer, Seller and Agent.
But for now? No. The M.O/M.O (Multiple Offer Modus Operandi) is the reigning discussion du jour. It’s the real thing.
So here’s a question I’ll toss out to today’s studio audience.
If (and this is a big if) the entire orbit of Real Estate truly revolves around a steady-state, binary system of fear and greed and the ongoing shifts and permutations from the gravitational pull exerted between them… in a multiple offer situation… what is the average Seller most greedy about?
Why… money of course. That’s pretty easy. The more – the better. Right?
Now, a harder question. What is a Seller’s biggest fear?
Buyers and would-be Buyers (and some Sellers leaning a little too far to the right on the greed spectrum) should pay close attention to this. In order to be successful negotiating anything, you have to be able to put yourself into the other person’s shoes and mindset. Buyers – if you truly understand what scares the hell out of Sellers – it can give you a big leg up in the competition.
A Seller’s biggest fear in multiple offer situations is the fear of choosing the wrong offer/buyer/person to enter into escrow with. The prospect of getting down the road two or three weeks into an escrow and then either falling out or having to suffer the slings and arrows of some prickly Buyer whose Jeckyl has suddenly transformed into a Hyde – is – simply put…an awful thought. A Seller’s worst nightmare.
You only get one chance to be a brand new listing, in a tight market without any inventory. It’s a magical moment in time rife with opportunity. And lightening doesn’t strike twice on the same place. If a listing comes back on the market two or three weeks down the road, because things went terribly south in escrow, the loan didn’t happen or the buyer became unreasonable, it isn’t going to be worth nearly as much as it was the first time around.
What’s the best way Buyers can approach a multiple offer situation…knowing they aren’t going to have the benefit of much insight into what other competing Buyers may or may not be willing to do to get a particular house? (This is a blind poker game for Buyers. The Seller deals. And the Seller knows the cards in everyone’s hands. Buyer’s don’t even get a chance to look around the table and read the ticks in the other player’s eyebrows or note the beads of sweat on their upper lips.)
So, smart Buyers chart a parallel course. They pay proper homage to a Seller’s greedy side at the same time they do everything in their power to tamp down those fearful voices rattling around in a Seller’s head.
The ones that keep shouting: “What if I pick the wrong person? What if this Buyer is just telling me what they think I want to hear and they don’t really mean it? What if they can’t get a loan? What if the price gets bid up so high that the house doesn’t appraise? What if they have their brother-in-law the contractor come in to inspect and write terrible things in a report that become disclosure issues for me down the road?