This week we are talking about negotiating with buyers, specifically with multiple offers and multiple counter offers.
First things first are managing your own expectations. Let the market dictate the price.
How we do this is by setting the stage for the buyer. First of all, we create a "safe space" for the buyer.
We encourage the buyers to write offers. The more offers we receive, the better shape we're in. If we act tough to the buyers and nobody writes, we're in trouble.
Another way to manage the buyers is through "Offer Guidelines". Lay out some of the terms we want to see in offers and let them comply.
Imagine your perfect offer, then let everyone know what you want to see. Close of escrow, rent back terms, inspection periods, deposits, and so on.
If buyers are motivated enough to buy your home, they might write you the perfect offer if you ask them to.
Also, what do we know about the buyer and their agent? How long have they been working together? Let's find out, so we know what to expect in escrow.
What about due dates? Do we set them automatically?
In my experience, setting due dates too early can backfire. Some buyers wait to see what other offers come in before they write. It's a bad strategy, but they do it.
So, sometimes when the "Offers Due" date comes, we don't have any offers. It's best to expect one or two, and tell people you will review as you get them.
Then, if it gets crazy, you can change your tune, reach out to the buyers and sellers and let them know there's a deadline to get your offer in.
Keep in mind that buyers can get frazzled during this process. For that reason, you should make them feel important and stay positive. Let them know everyone has a chance. Encourage people to write and hang in there.
Also, we need to remember that once we open escrow, we need the buyer as much as they need us. The tables have turned, and it's important we let them know there are still plenty of other buyers out there who would love this home.
This doesn't mean you don't work with them and negotiate fairly, but don't let them get crazy and think they're running the show.
Tune in next week when we talk about price adjustments.