It’s sort of a given that almost any house is going to get multiple offers, but how do you get buyers to do even better than the offer they submitted?
Common these days is the quickly becoming old school way of having a deadline for submitting offers. That makes it easy for the realtor, but doesn’t really give the buyers much motivation to get an amazing offer in as quickly as possible.
What I like to do is have the deadline, but add that the seller reserves the right to accept their ideal offer at any point prior to that.
This does a few things: 1. It gets you an offer in hand fast so that when realtors ask “Do you have an offer yet?” you can say yes! 2. It usually gets at least one buyer thinking they might get the house if they throw out a crazy high offer. Sometimes this works if the offer is higher than the seller and I expected or if it is that high and cash. 3. It also helps you if you don’t get more than one offer at all…..but more on that in a minute.
If I have more than 3 offers, I will let the realtors who sent the offers know I have several offers and I will highlight some of the best terms. You have to have 3 or more offers to do this though since each realtor knows what their offer was. I might say “I have 3 offers, all over list price, 2 of them waived the home inspection, etc. This lets realtors know that somebody has a better term than they did on their offer. I usually can get realtors to revise their offer with more competitive terms.
From here it is mostly waiting for the deadline.
But what do you do if you only have one offer and it isn’t that good? Well, a few hours before the deadline, you call up the realtor with the only offer. You let them know that you are willing to cancel the remaining showings and not wait for the deadline if they agree to whatever counter your seller wants to make. I have NEVER had a realtor not take me up on this. If you wait until the deadline and then try to counter, you have lost all leverage because they know they had your only offer. There has to be the fear that one of those remaining showings could be the buyer who outbids them.
So that’s it. It has never failed me and unless every realtor in town reads this, it will be our little secret.