Recently, we talked about buyer/clients of ours who lost a bid on a home per the advice of one of our agents - the house was a flip, and she advised this couple not to waive the inspection contingency. A decision that absolutely made sense. What's interesting is the same couple ended up putting in another offer on a home - same price point, same location but different facts that caused the agent, as a fiduciary, to give different advice and they ended up with the winning bid on their dream home.
What was different?
Unlike the last home, this home was built in the 1980's and was being sold by the original owners. They had renovations professionally done, and were retiring to the South after almost 30 years in the home. Our buyers originally offered $10,000 over asking with an escalation clause to go another $10,000 higher. (Do you know what an escalation clause is? If not, we will address in a future post.)
In addition to the escalation clause, our buyers offered the flexibility for the sellers to choose the closing date. This was important based on facts that our agent got from the seller's agent - they were moving to new construction and were looking at late June/early July as a settlement. The completion date was uncertain so flexibility was important to these Sellers.
How we used our expertise
1. We researched the neighborhood, the values, the supply of inventory and assessed that this home was priced right and in a very competitive area regarding supply and demand.
2. We knew what our buyers wanted. They were specific and were on a deadline and had been transparent with us regarding their needs. Based on the supply and demand in the area, we knew that this was the right home for our clients.
3. We communicated with the Seller's agent and asked very specific questions about the Seller's needs and drafted an offer that was win/win for both parties.
4. We know how to handle contracts and negotiations. By focusing on win/win, instead of being adversarial, it makes for a much smoother transaction.
5. We also focused on the emotional side of the situation. With four offers on the table, we wanted our offer to stand out. So we encouraged our buyer to write a personal letter to the Seller about why they loved the home, how they intended to continue the Seller's care and pride of ownership and about the Buyer's family.
Essentially, our agent read the full multiple offer situation and encouraged the Buyer to "go for it" based on her experience, knowledge and expertise and knew it would be a good deal for the buyers.