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How to Win a Multiple Offer Situation

Hi friends! It’s 8PM on Monday night and I’m writing to you after a very long weekend. I want to start this by referencing something Sam said in her last blog post which is “Law of attraction IS real!” Suddenly, I’m in the busiest season of my career to date. This is what I’ve spent the last 3 years working for. Getting to this point has taken lots of long days, working for free, missing lots of sleep, some tears and a whole lot of hustle.


This past Friday I get a text from my team lead that asked if I could show homes this weekend. She got a sign call on her listing in Seabrook and convinced them to see properties exclusively with us. I’ll be honest, it crossed my mind to say no because I already had such a busy weekend ahead of me... but what's a little bit busier? So I scheduled showings for 5 properties in Clear Lake and League City and texted my new clients that I would see them Sunday! I also had a listing appointment scheduled for Saturday in Texas City at 1:00 and plans to spend time with my dad and brother afterwards. My dad lives in the middle of nowhere, Santa Fe, which is about 45 minutes from everywhere else I needed to be, of course.


A couple weeks ago I was sitting at my desk working on a comparative market analysis as a favor to one of the agents on my team when I got a text from one of my very first clients. FYI - A comparative market analysis is a report that uses similar properties in size and proximity to asses the market value of a subject property. SURPRISE! The texts from my very first clients ever says they want to talk about listing their home! The home I helped them buy! They had been casually home shopping and ended up finding a new construction home that they really loved. I was obviously over the moon that they reached out to me because repeat clients mean I’m doing my job well. It's the highest compliment by far. Within the next 24 hours, we had signed their new home contract and we had a listing appointment scheduled.


Here's my favorite part of the whole thing. On Saturday we had just finished discussing what upgrades needed to be made before our listing date to ensure they got top dollar and were getting ready to wrap up the appointment. As I was getting ready to walk out the door I said something to the effect of “I’m so excited for you guys and so happy that you chose to work with me again.” My client responded with “you know, it really was just how often we were seeing your face in our mail." She said they love all of the sweet cards I've sent them. They got the halloween card and candy I sent this past October and said "We gotta call Payton.” My team and I are really big on loving on our people throughout the year and this is a great example of what can come from that!


On Sunday, our showings were scheduled for 10:00 AM, but of course I was there 15 minutes early. Showing # 1 looked nothing like the photos and they decided to pass. You'd be surprised at how often that happens. Did you know you can be catfished by the MLS, too? Showing # 2 was overpriced. We get to the 3rd home and. It. Was. Gorgeous. They fell in love almost instantly, which as a buyer's agent, is so exciting to witness. On the way to showing # 5, I text my team’s group message and asked if anyone could run comps (another word for comparative market analysis we talked about earlier), because if they decided they wanted to offer on # 3, I wanted to be sure that the home was priced appropriately. Big shout out to one of our team lead's, Britni, for taking care of that for me and sending me the CMA within an hour! Side note, showing # 5 REEKED of…. let's say... grass.


After we wrapped up our showings, and a few minutes of deliberation, they decided they wanted to submit an offer on # 3, just as anticipated! Since I had already done my research beforehand, I knew that this home was fresh on the market with multiple offers already, which meant we needed to be competitive. Thanks to Britni, we also knew that this home was priced appropriately and that we had room to offer over asking price. In multiple offer situations, offering over the seller's list price isn't the only thing you can do to create a winning offer. There are a number of terms in a contract that can create a competitive offer, and as someone who has never lost a multiple offer situation, I'm going to share some of them with you right here, right now.


  • Price (but this is the obvious one, right?)

  • Option period length

  • Option fee amount

  • Earnest money amount

  • Home warranty amount

  • Close date

  • Leaseback

  • Type of financing (cash is usually king, of course)

  • Appraisal contingencies


The list goes on. And to be honest, it's never a one size fits all situation. Your agent having the ability to gain intel on a seller's situation and the know how to structure the best deal possible for both parties is the absolute most important piece. Based on the comps for my buyer's property, we offered over asking price in addition to a $400 option fee for a 7 day option period. For context, if it wasn't a multiple offer situation, we probably would have offered closer to $150 for 10 days. Considering the seller gets to keep the option fee if the buyer's chooses to back out during the option period, the higher that dollar amount, the sweeter the deal for the sellers. I would also usually request that the seller pay for the buyer's home warranty, but in this case, considering the seller's bottom line, we didn't include a home warranty.


And guess what... My winning streak remains! We won! What a great way to end to a busy weekend, right?


XOXO

Payton

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