Navigating Bidding Wars

It is a lot harder working for buyers these days. You’d be hard pressed    to find a buyer’s agent who hasn’t lost more bidding wars than he has won for his clients. I’ve certainly had that experience in a few cases.  As  a result, agents and buyers are having to be much more flexible and     creative with their offers.

Though it’s not acceptable to present “love letters” from buyers, because they could lead to a fair housing violation, another approach could be, when an agent (not the buyer) is writing a cover note to a contract, it’s okay to mention something like: “The buyer grew up in this neighborhood and would love the opportunity to reconnect with friends.”  Who knows if  it has any effect at all, but it can’t hurt .

Another caveat may be offering a rent free extended one or two month occupancy agreement after closing. In many cases it can save the seller several thousand dollars by not having the additional expense of a double move or storing furniture.  Another condition could be: “Buyers agree to restrict Inspection Objection to Health, Safety and Structural issues only that may arise during the inspection process costing over $1000.

Instead of a typical escalation clause offering to beat any competing offer     by $5000 or more, consider this twist: “Buyer requests the opportunity to match any competing offer and shall retain the totally free two month    occupancy for the seller.

One common strategy with agents is to make a quick offer that is substantially over the asking price but with an early acceptance deadline, hoping to get the property under contract before anyone else can submit. This can pose a dilemma for the listing agent when his/her approach is to wait three or four days giving every possible buyer a chance to compete.

Agreeing to accept an early offer is the seller’s decision, not the agents. However, this modification might solve the issue: “In the event seller wishes to accept an early offer, the Listing Agent will notify brokers who have set a showing, giving them an opportunity to accelerate their time frame and present their highest and best contract within 24 hrs of said notice.”    

As a professional, no one wants any buyer or agent to be blindsided nor does the listing agent want their seller to miss out on a more attractive proposal.

We all want the experience to be a Win Win!