As listing agents we're noticing some interesting shifts in practice as the world becomes more digitally dependent, in particular with how offers are being submitted and communicated to sellers. Specifically, we're noticing more communication being done through text and email, and less through telephone calls and conversation.
A relatively common scenario is for a buyer agent to email the listing agent an offer and then follow that up with a text message asking the listing agent to confirm receipt. In other words offers are being submitted without the buyer agent initiating any conversation with the listing agent. These types of offers, in our experience, are the ones least likely to get accepted in a competitive situation.
Which offers are the ones getting accepted? The ones that involve more "old-school" communication. Here are 4 ways you and a your buyer agent can "go old school" to improve your odds in a multiple offer situation.
4 communication tips for a multiple offer situation
Before your offer is submitted, your buyer agent should call the listing agent to find out what terms are most important to the seller (for example, the seller's preferred closing date). Your buyer agent can also use this time to explain why you're a solid buyer and a great fit for the property. A short conversation also helps your agent find out how many offers are on the table and how many more are expected.
Then, you should write a personal letter to the seller explaining why you love their home and why you're the perfect fit for it. A well-written, personal note is often the deciding factor in a multiple offer situation. For more info, check out our article on 15 ways to write a winning offer.
When your offer is submitted, your agent should include a cover letterthat outlines the key terms of the offer and summarizes why you're a great buyer for the property. Your personal letter to the seller should also be included with the offer.
Before the seller responds to your offer, your agent should check in with the listing agentto learn how the decision-making process is going. Depending on what the listing agent has to say, you might decide to adjust the terms of your offer before the seller makes a decision.
Active versus passive communication
Buyer agents who actively communicate and advocate for their clients are the ones who most often get their offer accepted. On the flip side, agents with a more passive communication style tend to be less successful. Here's why:
When sellers select the next owner of their home, their decision is usually about more than price. Most sellers want to know in their gut that their buyer has a strong attachment to their property. They also want to know their buyer is solid financially and expecting a smooth transaction. The agents who consistently communicate these messages are addressing what's important to sellers and getting their offers accepted for their buyer clients.
Come back to our blog often for more home-buying tips. This link has all of our latest articles.
Please note the above tips are intended for a hot seller's market and negotiations with multiple competing offers. Market conditions and strategies will change over time. Every offer is unique. In no way should this article be treated as legal advice or as a substitute for the advice you should be seeking from your attorney or buyer agent.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred