Handout: 10 Tips for Navigating Multiple-Offer Scenarios

In a competitive market, it can be tough to balance keeping your client happy and navigating multiple offers on a home your client wants. From clarifying expectations and establishing your client’s must-haves, here are 10 tips for showing your expertise and leading multiple-offer situations.

1. Clarify your buyer's motivation

• Establish their must-haves and deal breakers right away. This way, when the right home does hit the market, your buyer will be ready to move forward quickly and with confidence.

2. Set expectations up front

• Set realistic expectations with your buyer: the market is competitive, and homes are selling fast. Ensure your buyers are prepared to move quickly.
• Under promise and over deliver: make sure they know the probability of their offer being
  accepted goes down with every offer.

3. Discuss finances early

• Once you’ve built rapport with your buyer, encourage them to get pre-approved as soon as
  possible. Otherwise their offer won’t be as strong.
• If your client is financing, align on their comfort level with and ability to make a larger down
  payment. This can help make their offer more competitive.

4. Recognize contingencies

• Work to shorten the closing date if the property is vacant or the seller has a short timeline
• Shorten the inspection period by doing it before your buyer submits their offer– this can
  demonstrate how serious they are.

5. Understand the seller's motivation

• Explore leaseback options with the seller if they’re purchasing another home.
• Maintain strong rapport and consistent dialogue with the seller’s agent to keep your offer top of
  mind.
• Offer delayed occupancy as an option to allow the seller more time to move.
• Limit repairs to only those over a certain dollar amount.

6. Gauge your buyer's commitment

• Continue to set expectations, but don't push your buyer beyond their personal or
  financial comfort zone.
• Ask in appropriate increments and price points to determine their comfort level.
• Tip: Prompt your buyer by asking “How would you feel if you lost your dream
  home by $3K? What about $5K?"

7. Stay competitive

• Ask the lender to call the listing agent to speak to your buyer’s qualifications.
• Leverage escalation clauses to help buyers win the offer, without exceeding their
  budget.
• Get ahead of the rush offers. Adding a contingency to see the property within a
  timeframe can protect the buyer.
• Offer to pay the seller's closing costs, excluding realtor fees.

8. Move toward offer readiness

• Prepare your buyer to make an offer with confidence.
• Tip: Ask your buyer if they're ready to make an offer. If they say they'd like to
  think about it, probe them further by asking "just curious, what is it you'd like to
  think about?"
• Advice from your consultant: Set a goal to write offers with 15% of your
  connections.

9. Seal the deal

• Maintain the rapport you built in the first conversation all the way to closing.
• Include a credit to the buyer on the closing disclosure to offset higher offers (i.e. title
  fees, taxes, etc.)
• Advice from your consultant: Set a goal to convert 10% of your connections.

10. Play the long game

• If your buyer's offer falls through, don't give up on them--and don't let them give up
  either. Continue to set expectations about the market and work with them towards the
  end goal: to close on a home they love.
• Use the App and My Agent feature to check in, send recommendations and show your
  expertise.

Don’t let multiple-offer situations stand in your way of success and getting your client into a home they love. Download the guide for tips on staying in the game.