New Listing - Sheridan Place Plan 2 in West Irvine (97 Ardmore)
- Thread starter usctrojancpa
- Start date
NEW -> Contingent Buyer Assistance Program
Good question. Since we now have 10 offers and all of them are at and over list price, the simplest reply from the seller will be to send out one best & final offer to each buyer that way it counts down on all the back and forth that you might get when dealing with a 1-on-1 buyer/sell negotiation. Unless there are some crazy low ball offers, I always recommend to the seller to counter everyone back because you just don't know if that lower offer will really step it up and bid high to the home. That way everyone has a chance to put their best foot forward. Once the counters all come in, I'll review all of them with the seller and I'll allow them to pick the buyer (we'll not only look at price but also other things like financial strength, time of closing, rent back if requested one, and other terms).
There have been some great questions asked by some of you guys in my listing threads. The sales process is definitely an interesting one and having started out as a buyer's agent and being on the other side of these multiple counters I know how it feels for the buyers. I try to be transparent and fair with everyone.
Lol Came out wrong, I'll have the buyer tell me which buyer they want to move forward with after taking everything into consideration.
When agents call me I let them know how many offers we have and if they are at or over list and/or near/above the latest closed comp. I never disclose directly what the amount of the highest offer/counter is. That way they know not to send an offer below the list price. I also communicate other terms that the seller will consider as favorable....days to close, rent back, contingency periods, etc....so they know what the seller is looking for and encourage them to submit their client's best offer/counter. The buyers that are on the fence will probably shy away when they hear that I have a half dozen or more offers but the serious buyers will submit their offers and go after the home so these multiple counter situations also weed out the flaky buyers.
Do the buyer agents ever ask for proof? I mean, not you, but it seems like it would be easy for a shady agent to claim multiple offer situation, or throw out a verbal "this is the highest offer we have, can you beat it" when in actuality, no such offer exists? I had a couple of friends who were in this situation when they were looking to buy. Shady agent said your offer is too low, we've got other offers, you need to bid up if you want this, but my friend didn't believe it, stuck to their terms and ended up getting the house because there were no other offers in reality.
I've never had any buyer agent ask for proof that I have other offers on the home. Remember, it is not legal for me to share any information and the offer with anyone else unless the seller gives me the OK to do so. I'm very transparent with buyer agents when I'm the listing agent as I've been on the buyer agent side in these multiple counter situations many times and I appreciated listing agents that were transparent with me. I let them know how many offers we have and hint at how high they are and what the seller is looking for terms (not price, but things like rent back, length of escrow, any other special terms).
I am saying that creating a sense of urgency and competition is sales 101. I can't speak for others but I have been in sales my whole career. I don't lie and have won the majority of my business because of my transparency and knowledge. But when I negotiate, I do assume that everything the other side says can be BS and I don't think less or higher of them for it. And like I said, you are saying they outrighted lied but you don't know that either. There are many soft offers or verbal offers that can become real.
Ethics is a tricky area. How do you feel about things like these that we see plastered on stores everywhere?
"Sale ends soon"
"Hurry, limited supply"
"Closing store and liquidating"
Sunnyirvine
Member
Awesome
usctrojancpa
Well-known member
paydawg said:
Good question. Since we now have 10 offers and all of them are at and over list price, the simplest reply from the seller will be to send out one best & final offer to each buyer that way it counts down on all the back and forth that you might get when dealing with a 1-on-1 buyer/sell negotiation. Unless there are some crazy low ball offers, I always recommend to the seller to counter everyone back because you just don't know if that lower offer will really step it up and bid high to the home. That way everyone has a chance to put their best foot forward. Once the counters all come in, I'll review all of them with the seller and I'll allow them to pick the buyer (we'll not only look at price but also other things like financial strength, time of closing, rent back if requested one, and other terms).
There have been some great questions asked by some of you guys in my listing threads. The sales process is definitely an interesting one and having started out as a buyer's agent and being on the other side of these multiple counters I know how it feels for the buyers. I try to be transparent and fair with everyone.
When you counter, do you tell them what the current highest is? How many agents call you to understand the bigger picture? Ie, what is truly important above price with things like rent backs, closing time, seller situation, etc.
I have had my agent call the sellers agent to truly understand what is their needs and what is the current highest offer. Why waste time by hiding that info and making everyone send in their best and final if it isnt even close?
I have had my agent call the sellers agent to truly understand what is their needs and what is the current highest offer. Why waste time by hiding that info and making everyone send in their best and final if it isnt even close?
usctrojancpa
Well-known member
zubs said:
Lol Came out wrong, I'll have the buyer tell me which buyer they want to move forward with after taking everything into consideration.
usctrojancpa
Well-known member
rkp said:
When agents call me I let them know how many offers we have and if they are at or over list and/or near/above the latest closed comp. I never disclose directly what the amount of the highest offer/counter is. That way they know not to send an offer below the list price. I also communicate other terms that the seller will consider as favorable....days to close, rent back, contingency periods, etc....so they know what the seller is looking for and encourage them to submit their client's best offer/counter. The buyers that are on the fence will probably shy away when they hear that I have a half dozen or more offers but the serious buyers will submit their offers and go after the home so these multiple counter situations also weed out the flaky buyers.
usctrojancpa
Well-known member
The seller has selected a buyer and we will be opening escrow today.
USCTrojanCPA said:
Do the buyer agents ever ask for proof? I mean, not you, but it seems like it would be easy for a shady agent to claim multiple offer situation, or throw out a verbal "this is the highest offer we have, can you beat it" when in actuality, no such offer exists? I had a couple of friends who were in this situation when they were looking to buy. Shady agent said your offer is too low, we've got other offers, you need to bid up if you want this, but my friend didn't believe it, stuck to their terms and ended up getting the house because there were no other offers in reality.
usctrojancpa
Well-known member
nyc to oc said:
I've never had any buyer agent ask for proof that I have other offers on the home. Remember, it is not legal for me to share any information and the offer with anyone else unless the seller gives me the OK to do so. I'm very transparent with buyer agents when I'm the listing agent as I've been on the buyer agent side in these multiple counter situations many times and I appreciated listing agents that were transparent with me. I let them know how many offers we have and hint at how high they are and what the seller is looking for terms (not price, but things like rent back, length of escrow, any other special terms).
"Shady agent"??? Sales negotiations are all about creating an illusion of competition. That isn't shady or unethical. There is a lot to hate agents for but saying your offer is too low or saying that there are other offers when there aren't isn't one of them.
And even your example doesn't prove that their weren't other offers. Other offers might have contingencies or might have dropped out. Ultimately the sellers agent's job is to get the highest offer for their seller. Using common sales negotiations and tactics are tools to do that.
To give an example of real unethical agents, I know of a few situations where the seller never saw the offer as the sellers agent was only presenting offers where they can double end the commission. That is unethical. They are hiding offers that they are supposed to show. That is why I now insist on getting the last page signed by the seller saying that they aren't accepting my offer.
And even your example doesn't prove that their weren't other offers. Other offers might have contingencies or might have dropped out. Ultimately the sellers agent's job is to get the highest offer for their seller. Using common sales negotiations and tactics are tools to do that.
To give an example of real unethical agents, I know of a few situations where the seller never saw the offer as the sellers agent was only presenting offers where they can double end the commission. That is unethical. They are hiding offers that they are supposed to show. That is why I now insist on getting the last page signed by the seller saying that they aren't accepting my offer.
nyc to oc said:
I am saying that creating a sense of urgency and competition is sales 101. I can't speak for others but I have been in sales my whole career. I don't lie and have won the majority of my business because of my transparency and knowledge. But when I negotiate, I do assume that everything the other side says can be BS and I don't think less or higher of them for it. And like I said, you are saying they outrighted lied but you don't know that either. There are many soft offers or verbal offers that can become real.
Ethics is a tricky area. How do you feel about things like these that we see plastered on stores everywhere?
"Sale ends soon"
"Hurry, limited supply"
"Closing store and liquidating"
usctrojancpa
Well-known member
I know we can all agree that there are more bad agents than their are good agents. For me, the ultimate goal is for all my transactions to be a win-win for all parties involved. I have a consciousness and was raised right so I like sleeping well at night knowing that I've done things above board. I'm doing my part to make the real estate transaction more enjoyable for my clients and transparent to the other side.
potsticker
Active member
In this market, I don't fully understand why buyers always think the sellers are BS'ing them. Maybe it's an ego thing - but the fact of the matter is a well-priced property in Irvine is going to be very popular and will have multiple offers. If you're looking for a deal, filter your search results to listings that have been on market for 30+ days.
usctrojancpa
Well-known member
Escrow on this transaction closed earlier this afternoon. The final sales price was $687,000, another record model match closing price. Congrats to both the buyer and seller (I represented both on this transaction).