If you are one of many buyers currently trying to purchase a home in San Carlos, you have inevitably come up against a home that was attracting multiple offers. The multiple offer situation can be an intimidating process. You want to obtain the property, but do not want to get caught up in a bidding war and overpay for the property. How much do you offer? What about the close of escrow, contingencies, rent-backs, disclosure issues? There are many moving parts in a multiple offer situation. Having been involved in numerous multiple offer situations, both on the listing side and selling side, I can tell you that the agent you use can make a difference.
There are some agents who do extraordinarily well under pressure packed circumstances, such as those that surround offer presentations in a multiple offer situation.
Start with the preparation. Aside from price, has your agent taken the time to truly understand the seller’s needs, such as close of escrow timing, possible rent-back needs, etc? While price may not be a negotiable term for the buyer, maybe there are other facets of the deal which the buyer could negotiate to make it more attractive to the seller. Exceptional agents will get creative.
In most multiple offer situations, the buyer’s agent will present the offer to the listing agent, and possibly the sellers. Your agent should be confident, prepared and well spoken. In a multiple offer situation the listing agent is looking for the offer that has a solid price, great terms, and most importantly, he or she is looking for the offer that will close the escrow without any issues and on time. If a buyer’s agent flinches on any of these issues or leaves even the slightest doubt as to the ability of the buyer to close the escrow, your offer will most likely slip to the bottom of the pile.
How do you know if your agent is going to give you an edge in a multiple offer situation? If you are 100% confident in your agent, you should do well. If you are 95% confident in your agent, do not waste your time looking at properties which will likely encounter multiple offers.
5 Comments
Bob,
thanks for your continued insights into the san carlos and real estate markets in general. Maybe this warrants a separate post, but how do you feel of agents representing both sides of a transaction and what are some issues that arise in such situations.
Dear Lost in San Carlos:
Great question. For me, representing both sides presents some very challenging issues. I have never been entirely comfortable with the thought of having to aggressively represent both sides when I know what both sides are thinking….. I have tried to stay away from doing this at all costs. In fact, I have only completed a dual representation transaction once. In that particular transaction, I represented both sides without taking a commission in order to make two other related deals, work. I would prefer to refer one side to another reputable agent. I think it makes everyone feel better about the deal. However, sometimes clients are insistent on the representation, and you do the best you can.
That being said, there are a few very good agents who do represent both sides. Each transaction is unique and needs to be treated as such….my advice would be that if you are the slightest bit uncomfortable with the thought of having your agent represent both sides, either insist that your agent represent only you, or ask for a referral to complete the negotiations.
Thanks for your post.
Bob Bredel
Realtor
REMAX Today
Bob,
Thank you for the very informative blog. I wanted to get your opinion on something. My husband and I are one of the buyers you have mentioned in previous posts that have been trying to move into San Carlos. We have lost in three multiple offer situations and are growing a bit impatient. I really like our agent. She is very thorough and seems like she is on the ball. Is there anything we are missing or could be doing differently?
Thx
Dear Frustrated,
I am sorry that you are having such a tough time. I have a few follow-up questions for you and some thoughts, as well.
Am I correct in assuming that you are in the 900,000 to 1,200,000 price range? This is where the greatest amount of frustration is coming from.
The first question I have centers around why you have lost the first three multiple bid situations. Was it price? terms? contingencies? Your agent should have some feedback on these issues. My guess is that one of these was the main reason for losing at least two of those multiple bid situations. Once you discover the common denominator, the problem should be easily fixed if you are comfortable making that one area of your offer more competitive.
Next, I would shake things up a bit regarding how you are going after properties. First, get creative with your offer. Many agents that really take the time to understand the seller’s situation will be able to get creative with an offer to make it more enticing. Second, be the first buyers to tour the property. If there is any interest at all, immediately have your agent contact the listing agent and let him/her know who you are and your interest level. There’s an old saying, “Your first buyer, is usually your best buyer.” In the offer presentation make it known that you were the first to show interest and have never wavered with your enthusiasm for the property. Finally, ask if the listing agent and seller would be willing to entertain a sharp offer (your agent should be able to give you a lucid explanation). Many listing agents and sellers will not entertain a sharp offer, but if they will, use it.
I would also encourage you to be patient. I realize the inventory level in San Carlos is very low, however, if you are persistent you will eventually be on the winning end of an offer.
Hope this helps, and best of luck.
Bob Bredel
Realtor
REMAX Today
Bob,
Thanks for the great information. My husband and I are looking to buy a condo/townhouse in San Carlos. How do you consider that market for San Carlos in terms of demand, resale and pricing. I only found mentions of SFR here. Do you similarly discuss townhomes on the blog?
Thanks,