I’ve Never Been Competitive With Anyone But...Other Buyers

The market is improving, inventory is down and multiple offers are fated. But how do you avoid certain disappointment when you lose to a competing offer? For many of us, “highest & best” deadlines are routine. But for Buyers, most are unfamiliar with this term and process. So how do we prevent the pitfalls of distress and discouragement? It is essential that my Buyers are educated about the multiple offer process and the characteristics when competing in a multiple offer situation. First, I prepare and inform my Buyer with a snap shot of the current trends, including the days on market and average sales price vs. list price. It is not uncommon that a Forsyth residence will be under contract within hours of being published in MLS. Setting realistic expectations for my Buyers is essential. Second, I consider the shrinking inventory. If my Buyer’s offer is not accepted and they are forced to begin a new search, there may be fewer possibilities. In addition, the upward swing of interest rates should be noted. If their search is extended, the cost to borrow money may exceed the nominal difference in presenting a stronger initial offer. An analysis of the cost of presenting a stronger offer in relation to the cost of extending their search and possibly losing additional money is important. For example, improving an offer by $2,500 may be beneficial if it secures my Buyer’s current interest rate lock and allows the Buyer to acquire their preferred Property. Lastly, I encourage my Buyers to discuss an alternative plan should their offer be rejected. A back up plan will lessen their disappointment and promote optimism with our next offer. Today’s market requires an informed, prepared and aggressive approach.