Winning the Multiple Offer Real Estate Bid
Recently, I listed an entry level priced condo at Lakeside Hideaway in Bonita Springs Florida. The market has little inventory and this condo was in pristine condition, being sold furnished by motivated sellers who priced it fairly. Within a day or two offers came in; I believe 7 offers came in, in total.
The reason why I am telling you this story is to help you gauge how important it is to truly understand the real estate market before you get into it and how important it is to pick an experienced, aggressive real estate agent for the job.
Here’s the scoop on the condo. Three bedroom/two bathroom/priced at $125,000.
The offers that came in range from $90,000 to $128,000. Here’s what I can tell you about these offers. Some of them were represented by unskilled real estate agents, plain and simple. With such scarcity of inventory why would someone come in 28% off of list price, especially when it was “priced well”?
Two or three of the offers were in the middle somewhere. One offer had an agent that just didn’t grasp what “we are in a multiple offer situation so bring your highest and best offer” meant and kept texting me with “do you think 96K is enough?”, “how about 98K?”, “My buyer will offer $105K but that’s his final offer”, “OK, he’ll go $115K”" but that’s his final offer”. I decided to call that tactic “escalating texts”. Were you the real estate buyer represented by the text bidder? When she didn’t get the contract for you she was furious, by the way. She should have been mad at herself for losing that condo due to her ineptitude. While she was busy texting other agents were busy bringing in paper offers with bonafide numbers on them.
The final contract that was executed and has since closed was actually just below list price, not over list price. It was because it had the PRICE and TERMS the sellers were interested in. The buyer’s agent brought a clean contract, all of the addendums, proof of funds and had the application filled out within a day or two of contract.
Folks, we’re in a low skill market again … that means that the agents who are inexperienced, lazy, work part time or don’t give a crap are out there helping innocent buyers NOT buy the real estate of their dreams. Just an FYI. Maybe part of the questions a buyer should ask their agent is what do you do when there are multiple offers on a property that you’re trying to buy.