Multiple offers can be as frustrating for a listing agent (at least, this one) as waiting and working for ONE offer. And the fact that the public, and many of the agents don’t know exactly how to deal with them makes it even more labor- and time-intensive.
Remember that the seller doesn’t HAVE to respond to ANY offer. It’s not good practice to ignore offers, but there is no obligation to respond. If the ‘drop dead’ date comes and goes, the offer is dead.
We always let people know (public and agents) if other offers are in process of negotiation . . . (note that the REALTOR COE calls for disclosure of ACCEPTED offers), and tell you off the bat that other offers are in so TAKE YOUR BEST SHOT NOW.
So if you know another offer–or two–or ten–is in, why make a weak offer with the expectation that the seller will counter? That is risky.
If there is already a better offer in, chances are IT will be the first, if not the only one countered.
And a low offer–OR one that does not echo the seller’s requested minimum terms–might be viewed as less than serious when there are better offers in.
TAKE YOUR BEST SHOT AS SOON AS THAT TARGET IS IN YOUR SIGHTS, IF YOU WANT TO ACTUALLY HIT IT.
Investors playing the ‘law of averages game’ are operating on the premise that if you throw 10 lowballs at 10 sellers, there’s a chance that one will stick.
That is not who this post is directed at.
For the buyers who truly want a property–and lose their shot because they are playing an investor’s game with an owner-occupant’s set of needs and emotions . . . I wish they had been more sensible.
I had a situation recently where an offer on one of my listings, one of two, was outright rejected for a better offer. The offer made was a fairly weak one, even after told that an attractive offer was in. (Neither buyer was via my office, FYI.)
When I broke the news to the weaker offeror’s agent that the seller rode the more attractive offer to execution, the response was. “Why didn’t you counter us? We WOULD HAVE GIVEN YOU THE SAME THING!”
Why didn’t you just do that in the first place?
When the seller was asked, “DO YOU want to counter this offer with similar terms or ask for a best/highest/final from both parties” , his response was,
“Nahhh . . . they probably can’t do it or they would have offered to–and besides, this other one is ready to go.”
And if you know a better offer than you were going to make was just rejected . . . by a BANK . . . and you STILL want to lowball yours . . . let me feel your forehead. Are you running a fever?
I was told by a bank’s agent that X amount was the last offer that was rejected (and we all know how they arbitrarily respond), which I conveyed to the buyer. In response, he make an offer 10% below it and said “Tell them to take if or leave it.”
Guess what happened next? Duh! They left it.
I think this happens because the public distrusts what we are telling them.
Problem is, we can only go on what we are told, too. There is a point where you have to take on faith what you are told.
Don’t kill the messenger! But please listen to the message:
Unless you’re an investor (a REAL one, with a calculator for a brain and a steel spine, and no attachment to the outcome or a particular property) . . .
. . . the more weak offers you make, the more failures, the less enjoyment you’ll get from a process that should by all rights be exciting and fun.
Why put yourself through it?
Look at the comps, make a tight offer and get the property!
Arizona Real Estate On The Beautiful Colorado River ~~~