Multiple Offers for Sellers
So we’re going to yes, we’re going to approach this from a sellers standpoint, I’m going to use a real life example as well. So this weekend, Jodi had a listing and it wasn’t set to go live until later on. I don’t know the particular date, but started receiving phone calls in the coming soon status. And they decided, you know, she talked to the seller and they decided to go ahead and go live. So they did. And it’s like the floodgates opened. So I think, you know, I don’t like to have on my phone all these emails or texts or numbers that are unread. And it gave me a lot of anxiety because I would clear my emails and I would have to be more clear, my emails, one hundred and fifty more. And it was like, what is happening? And in the same regard, my phone, my texts, Jodi’s, we’re going nuts. So this home is a home in Frisco and it was listed for four hundred and 35 thousand. And it is not really an updated home that you would think would be getting this type of activity. But it was in a in a neighborhood that apparently there’s a huge demand. And I don’t know if it was timing. I don’t know what all the factors were, but bam. So we laughed.
I laughed yesterday because Jodi’s husband, Adam, says, man, you and Shana are both wrong on the price. You must have both really. You discussed it. You must not have really prices and property. But I went back because I started thinking that myself and I look back and we did I mean, it was priced properly. Jodi did a lot of research and getting it prepared and, you know, staged properly, photos, all the things that we need to do. But so the house is listed at 435. She ended up taking a an offer the seller did for 465. So thirty one thousand sixty six. Yes. Thirty one thousand above list price. And over the weekend we had sixty showings and we had I think she ended up with fifteen offers or so. But the best call that I received in Jodi’s not here to, to tell her side, but yesterday morning I got a call from an agent that was frantic and she said, I am very upset about my showing that occurred yesterday. I said, well, what happened?
And she said I was physically pushed out of the door and wasn’t allowed in until someone else was completed with their showing. And I said they put their hands on you. And she goes, yes, they pushed me. And when I stepped back, I hit my client who fell to the ground.
She’s like, so my client, you know, maybe pressing lawsuit. I said, really?
I said, I don’t know how that’s going to work. She may need to file an assault or something and call the police, but that was a first for me. I’ve never heard anything like that happened, but it was crazy. And, you know, looking at the feedback, it was so interesting because some of them were saying price too high. And then we’re like, OK, so long story short there, they’re a really, really crazy weekend and a lot of things that a lot of things happen, that it’s it’s causing me to to think about other.
Policies and procedures maybe that we need to implement well, before we get to policies and procedures.
Let’s get to some facts. Yeah. As we kind of know them as best we could. Yeah. So it went live on which day? Friday. Went live on Friday. You know about when? Friday. Now, I don’t know the specifics. So it went live on Friday. Yes.
And how many showings over the weekend. 60. Sixty is in six zero. Yeah. OK.
And you said 16 offers, 15 Kingslake 15 offers and thirty one thousand dollars above and thirty one thousand. And it was four hundred. And how much. Thirty five for thirty five. OK, so we’re talking you know forty three thousand would be 10%. So this is 31.
Like this is like I don’t know seven percent above list price. Yeah. And all those showing.
So, you know, when all this started happening, this was on a Friday night, the weekend, what do we do? So, you know, Jodi and I had a conversation. She’s like, what do I do? And I guess that goes to how do we handle this when this happens. So first and foremost, what we have to do we have to stop and take a deep breath and understand that it is always the seller’s choice on how you handle this. It’s not yours is not mine. It’s input how that. No, no. But it is the seller’s choice. And if you think, you know, this isn’t a bad thing to talk about when you’re at your listing meeting and you’re listing appointment, however you want to be careful that you’re not like, hey, if we’re getting multiple offers, what do you want to do? And then you don’t get any showings for a week. So you want to be very, very careful what you say. And you always want to think of the, you know, the OP if the opposite happens, how are you going to handle it? So never over promise all of those things. Right. But it is a seller’s choice. And it’s our job to always follow the code of ethics, write the code of ethics tells us to promote and protect a client’s best interest. And we have to be honest and fair with the other agents as well. So this can easily go one way or the other and you can kind of get outside of and be drawn outside of truly following your the code of ethics.
So take a deep breath. Always remember that. And when you’re questioning something, you can ask yourself that question, is it falling within these lines? Am I doing everything fairly? Am I acting honest and, you know, protecting my client at the same time? So in this situation, you know, you you don’t really have time to plan. Right? And at the end of the day, only one of these offers is going to result in a sale and get closed. So, you know, you have to you have to think quick. You have to you have to think smart and you have to be calm is first. Right. So when you have one offer and then somebody says, hey, I’m going to get and I might be sending another offer in, and then you get two offers and then you don’t get anything else, then I would say that’s one scenario. But if all of a sudden you’re getting tons of activity and you’ve got this offer next off or you start getting more than two offers, then I think you approach it another way. So we’re going to use this property as an example on how to handle it. And so we started seeing all these showings and all of these offers coming in. And so, you know, the first offer that came in were like, oh, it’s above list. That’s cool.
Was that on Friday or Saturday? Friday, Friday. OK, so it went live and the same same day.
Mm hmm. Yeah, so quickly. Right, perfect. So when that happens, the last thing you want to do is have this person wait and feel like, oh your offers great. But we’re going to wait. Right, because that mentally they don’t like
that. They don’t like that they rushed. And I’ve been in that situation where you rush and you put your offer in and then it’s like, so you need to be clear on that up front with how you’re going to handle it. So have that discussion with yourself or have a plan and know how you’re going to handle it. So what we did is we decided to put a deadline, a multiple offer deadline in, you know, out there to stop accepting offers after a certain time. And how you do that is you want to again, you want to treat everybody fair and give notice to everybody. So what we did is in the first line of your MLS description, you put that offer deadline in there immediately. And then in showing time, you can go in and you can add in there in the agent notes, the showing agent reps, notes and everywhere that, hey, we’re in multiple offers, here’s the deadline. So they know when they’re scheduling. Oh, OK. There is a deadline. And then if you’ve had showings prior to that, you can also send out a message through showing time, announcing that deadline.
OK, so what happens to the showings that are scheduled after? Write that you’ve let everybody in the past know about the deadline. What about the future ones? So it’s going to come into play. How many people are you talking about? If you’ve got a handful of people, pick up the phone and call them and be courteous. Always practice that courteous courtesy to the other side, because this is how you’re building relationships in these relationships. You know, we talk about it all the time, how they matter down the road. So be courteous, pick up the phone, call them, say, hey, just so you know, we’ve got a deadline. You’re showing it. We’re going to need an offer. If your client is truly interested, we’re going to have to put that. You’re going to have to get that offer in quickly. If you have 25 people, then you’re going to have to send that message out again and get that message to them. So we created a text message yesterday because we started getting all these texts like when’s the deadline? Hey, people don’t read the MLS, unfortunately, or look in showing time. So for those, you have to also have a plan. So create a text message template and just send it out.
And that’s what I would say is the easiest way. Same with email. If people are emailing, you make sure that you do that. So communication is extremely important. They’re OK, because what you don’t want to do is you don’t want to if you’ve got a great offer right here, you don’t want to lose them. So I would call that agent and say, hey, thank you. You’re the first offer were overwhelmed with the response that we’re having here. So bear with us. But being it’s a weekend and we just listed, we’re probably going to wait until Sunday. We don’t have a deadline yet. But hang in there with us. We’re really appreciative of your offer. And then that sends a message to him that, OK, thanks. You know, I’ll I’ll be sure to let my client know. And, you know, if you don’t communicate that with him and then all of a sudden he gets this message, he feels differently about it. Right. So that’s kind of how you deal with the agent’s deadlines. And again, it depends, you know, in multiple offers, there’s no set right or wrong way to do this. Unfortunately, there’s no, you know, real by the book way to handle it. So you have to handle it. As you know, every situation is different.
So I would say in this case, since we had such an overwhelming response and it was a weekend that we went ahead and gave it till Sunday, Jodi talked to the seller and they determined that Sunday at four o’clock was sufficient to allow everyone to be able to see the properly property and gives people, you know, when we put it in MLS, we’re giving the agents and other buyers a fair chance at this at this property. And that’s what putting it in MLS is. So we did that. And I would say as a rule of thumb, that I would consider 24 hours to up to two days as a deadline. You know, it just depends. I think, you know, the longer it is, the more you risk losing that first buyer, especially in a weekend, they’re going to go in and look, be looking at other homes. So you need to have that conversation with your seller, what happens? And they have to be you know, you have to inform them of all the pros and cons to every decision that you’re making here. So, yeah. So we did that and. You will get people that deadline’s at 4:00. I know it’s at four o’clock. I’m out of town. I can’t get the opportunity till 7:00.
You have to be firm, is that a millennial agent? No, no, it just happens.
This is where you know how we talk about have a backup. If you’re out of town, have a backup for yourself, because if your client misses out, they think you’re out of town, they’re probably going to fire you. I’ve had many I’ve I’ve got many clients because their agent was not a great communicator or they felt that they left town, they never left town the one time they did. Now the sellers, like they are always out of town, you know, so people want instant gratification and you have to be able to serve your client. And when we’re still in a hot market like we are, you have to be available. So have a buddy and B be ready. So I you know, we had to tell them, no, that’s not fair to all the other people who rushed to get that deadline. And so you need to have a hard deadline in place and and stick to it, OK? And you’re going to hear all kinds of stories and different ways that they’re trying to persuade you to wait. Don’t do it. When you and the seller come up with a plan, stick to it. OK, now, when you’re talking with the seller, you can also. Ask him how he wants you to relay the information to the the buyers agents so, you know, the seller has the right to tell you that you can give a price, tell them what the price is, tell them they’re above list. Tell them all these things. I personally would discourage telling price because I think sometimes that can shoot yourself in the foot.
And I think that just I don’t feel right about that at all because you kind of been the person who spoke first is in trouble and it gives the person who puts the offering last an advantage. It’s just that it’s a kind of a weird thing. I don’t know.
It doesn’t feel right. And I think what you know, what I feel good about is you are working for the seller, remember? So you’re wanting to get him as much money as possible for his home.
Right. So there’s a term higher and best. So if you submit an offer like maybe the person on Friday and they submitted the offer superiorly they were offered number one and they have an opportunity to to do what then? Could they change their offer. Could they. Absolutely. Tell me.
Right until there’s a deadline you can revise, revise, revise as many times as you want. So you know, I would talk to him and then you know, what you can tell people is, hey, just so you know, and this is what we started doing because we were getting some low ball offers to believe it or not. But this also helps you kind of narrow down and kind of weed through some of the non serious folks out there. So you could say, hey, just so you know, we are at or above list price. There are strong offers. Please bring your best. Put together an offer that stands out. And this is what I look for when I’m talking with the seller is the price. You know, you’re looking for price, the least amount of contingencies possible right there, financing. So they might have the least amount of contingencies. But you want to verify with that lender that they are strong and they are good to go because you don’t want to go through this again. Proof of funds. Yes. Or proof of funds. Verify the proof of funds. You never know. Just because you get proof of funds doesn’t mean that.
They’re legit. We found that out, right? And the percentage of money they’re putting down.
There’s a bunch of things right, Prasert wave of you know, all of those goes into how strong is the offer? It’s not just the price. It’s really not. It’s all of these other factors. And you take them all and put them all together. And then your seller needs to choose the one that he feels is the least amount of risk to him. Right. So once you do that, then you want to encourage a backup, say, you know, find I would say choose one, two and three, OK? And then you’re going to go back once you’ve accepted one and go back to two and three and maybe even four and encourage them to put it back up and say, you were so close and we really appreciate your offer. But could you would you be willing to do a backup? You just never know in this market. So encourage the backup and then you’re your buyer or your seller is protected. Right. So, you know, it gets very crazy. But if you follow all of these things and you know, you just have to you just have to talk about it from a standpoint of you are bombarded or you’re getting one or two trickling in here, what do you really want to do and talk to the seller and then minimize your risk of losing them. So, you know, it’s really hard to tell you exactly what to do. You’re going to have to see how it kind of unfolds to determine how you approach it.
And so there’s so many other things that we can look at this on how to evaluate it. But this topic was just from a seller perspective. And yeah, they don’t always happen. They don’t always happen with such ferocity, but it does. And now we know how to handle it from as an agent from the seller’s perspective. When that happens, we’ll cover more of that from different perspectives.
Yes, we will cover more of that. But I want to tell you guys to close this topic is when you accept an offer and you receive a backup, do you just leave all these other guys hanging? No. You kind of follow the same approach as you would in getting the message out of the multiple offer deadline is you want to let everyone know that. Thank you so much for your offer. However, the seller is chosen one at this time and we’re going to move forward with it again. Thank you. And just be very nice and courteous to them and give them that, you know, that notice you can send it out and showing time, you can send us an email, you can send them a text, you know, the same the same guidelines there. But please communicate because, you know, no matter what, that agent is probably frustrated, their buyers frustrated. I mean, we know we’ve had buyers that go through this seven or eight times. Susan has one right now and they are going way above list price. So, you know, just please communicate. Communication is really, really important.
And the key to a lot of your success when handling this is these are agents that y’all would like to work with again and you want to see when your name comes up or our company name comes up again. Well, and you’re wanting to work with us, right?
Absolutely. So, you know, Jody, some of these agents texted me and said, hey, Jodi has been great. I mean, great to
work with. Thank you so much. I would love to work with you again. Remember, we did a deal at this time. So you know how you guys always want me to call and kind of do that while they’re doing it as well. So, you know, it just goes along the lines of creating that relationship with these other agents. We’re all in the same boat. We’re all shooting for the same goal is to help our clients and get these deals done. So remember that. And, you know, even when you have an agent that could be not having their best day, don’t let that make your damper your day. You want to. Oh, OK. You know, I’m sorry. And just handle it with care and still be courteous. So it is stressful. You can only sell the property one time. Yeah, right. And it does become difficult and it is. You need to walk through it and make sure that you do select the right offer because it is a difficult thing that all of a sudden if you accept that offer right. And you had all these and then it doesn’t work out, it does become it happens. You got to make it super stressful situation. Right. And make sure that you realize what and how you are selecting that. So, ladies and gentlemen.