Multi-Offer Market Revisited!
MULTI-OFFER SITUATIONS
Multi-Offer Market Revisited!
It is very apparent that we are heading into another year of a seller’ s dominated market. All CBD brokers should review these best practices for how to best handle this market from both the buyers and sellers side.
Here are a few tips from both sides of the fence:
REPRESENTING THE SELLER:
1. Know and act like you are in control of the situation.
2. If you or the seller don’ t like escalation clauses, strike them and counter back on the terms and conditions the seller wants as if the escalation did not exist. Here is a good example: an escalation clause is attached stating buyer will go $ 50K over asking price with $ 5K bumps over next highest bid. You get another offer that is $ 40K over ask with no escalation. You could counter back to the better offer, removing the escalation at $ 45K over ask. In this market, most buyers just want to win, so they would be happy with this.
3. Use a spread sheet to analyze the different offers, breaking out all the important deal points and present ALL offers to the seller. You don’ t want to be called out later by some buyer for not presenting ALL offers as State Law demands.
CBD has created this spreadsheet to help you and your seller analyze multi-offer listings. This form will allow you to easily input highlights for up to 20 PSA’ s so you can compare the offers side by side.
CBD Multi-Offer Seller Spreadsheet
4. Over communicate with all the buyer’ s brokers. Treat them like you would want to be treated, not like you probably have been treated by some unprofessional listing broker. This means let them know what the rules of engagement are in the NWMLS and follow them, especially if you are going to be reviewing all offers at some date in the future. Call
COLDWELL BANKER DANFORTH | BROKER’ S BANTER | MARCH / APRIL 2017
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