Seller Tip. Multiple Counter Offers are back – how to choose the right agent.
Multiple counter offers have returned as sellers attempt to create a more competitive environment to negotiate a sale at or over the list price. But sellers should be careful because they could spook a buyer. Here is an example.
There was a Lamorinda home listed at $2,995,000. Two offers came in. One had a quick close, more money down and no contingencies but was lower than the other offer. The seller went back to the lower offer and ask them to increase their offer to match the other higher offer (which had a longer close and a short contingency period).
The buyer’s agent said “they want to sleep on it”. The next morning the buyer’s agent emailed, “They are out. Go ahead and sell the home to the other buyer.” Fortunately the other buyer with the higher offer was all-in and the home sold $35k over list. But what if they became inpatient and walked?
In a transitional market your agent’s communication with the other side is paramount and needs to be heavily relied on. Ask your agent:
1. Are you communicating with all agents and buyers on our behalf?
2. How do you handle multiple offers?
3. What is your approach with encouraging offers?
4. How many real estate cycles have you experienced?
5. How many sellers are you currently working with and how many more listings will you bring to the market?
No longer can agents place a for sale sign in front of their listing and wait for offers to come in. Choose smartly.