As a real estate agent, you’ll deal with all types of transactions, including multiple offer situations. While every transaction is unique, there are common strategies you can use to excel during multiple offer situations.
Creating a winning strategy for multiple offer real estate deals includes planning how to master bidding wars and come out on top.
For the most part, you may play a different role in each transaction in real estate.
On the one hand, you may represent the seller as a listing agent receiving multiple offers.
On the other hand, you may be representing a buyer competing against other competitive offers for the same property, and knowing how to make your offer stand out is crucial to the success of your client’s bid.
Sometimes, in very rare cases, you could be “double-ending” a transaction, meaning that you’d represent the seller and a potential buyer in the deal. It’s a complicated process and requires you to be on top of your game, but it’s also very lucrative when it happens.
To excel at multiple offer situations, you’ll need to be able to handle a lot of tasks at the same time and due a ton of preparation that includes:
- Preparing for the process
- Two strategies: Listing side and buyers side
- Mastering multiple offers as a listing agent
- Beating the competition for your buyer
- Get organized and master time management
What Are Multiple Offer Real Estate Situations?
In real estate, a multiple offer real estate situation is when more than one offer is made on a property from different parties.
This can be an ideal situation for both buyers and sellers, but it can also be overwhelming for real estate agents who may have yet to encounter this situation.
When you have multiple offers on a property, there are two different strategies you need to implement. A seller’s strategy is not going to be the same as a buyer’s strategy, so planning, setting expectations with clients, and having a clear plan of action are crucial to succeeding in a multiple-offer situation.
As an agent, it’s essential to know how to navigate the process of multiple offer real estate situations so that you can help your clients get the best possible outcome.
This includes mastering bidding wars, understanding the market, setting time blocks for each step of the process, and using time management strategies to stay focused and organized.
With the right strategies in place, you’ll soon be able to excel during multiple offer situations as an agent.
Preparing for the Process
Preparation for multiple offer real estate situations is the key to having any chance of success and getting your client the best deal.
First and foremost, familiarize yourself with the process to understand what to expect.
Then take some time to go over all of your client’s needs and wants so that you can better advise them when it comes time to make decisions.
Additionally, determine how much time each step in the process is likely to take so that you can create a realistic timeline for completing everything on time.
Finally, strategize about how you can best represent your clients in multiple offer situations.
How To Master Multiple Offers As A Listing Agent
Mastering multiple offers can help you close deals and make more money as a listing agent.
When faced with multiple offer real estate situations for buyers, it is essential to remember that each offer should be judged carefully.
This means looking closely at the conditions set by buyers, including property inspections, financing terms, closing dates, and other buyer contingencies.
Understanding how to assess these conditions can help you determine which offer would be most profitable for a seller and maximize their return on investment.
Additionally, communication and negotiation skills are essential for getting the most out of multiple offers.
To create an environment where you can be successful as a listing agent, you want to create a situation that starts a bidding war for your client.
To do so, market and target your client’s homes by getting as much exposure as possible to as many people as possible. One trick is to get the house on the market by Thursday because most home sellers are looking online for a place to walk through over the weekend.
Second, create an offer deadline 7 days after being on the market.
What you’ll want to do for your client is for you to reach out to mortgage brokers and lenders to find out how much a buyer is willing to put down toward their down payment and whether they show proof of funds.
You can take this information directly to your client, giving them better information about potential buyers and their bids.
Next, you will want to reach out to every single agent and tell them the number of offers you’ve received and tell the buyer agents to submit their highest and best offers.
Now you’ll want to compile all that data and sit down with your client and discuss all the offers and strengths of each one.
Being able to effectively communicate with all parties involved in the deal can go a long way in helping you secure profitable transactions for yourself and your clients.
There’s leverage in being a seller's agent; by understanding those tactics, you’re better suited to assist your clients as a buyers agent to win against multiple offers.
How To Excel Over Multiple Offer Real Estate Situations As A Buyer’s Agent
As a real estate buyer's agent, competing against multiple offers can be challenging. However, there are a few key strategies that you can use to stand out and excel against numerous offers.
One strategy is to make an outstanding offer right off the bat: raise your purchase price or waive contingencies, such as inspections or appraisals.
Additionally, focus on the details of the offer, including lender contacts and providing proof of funds.
- Finalize your finances
- Have an approval letter
- Offer cash
- Lower contingencies
- Offer shorter escrows or rent backs based on the seller’s interest
- Provide credits back to the seller
Finally, ensure that all paperwork is in order before submitting the offer. By following these strategies, you can stand out above your competition and succeed during negotiations.
Competing with multiple offers as a listing agent and a buyer’s agent requires different skills but the same strategy. Getting the best deal for your client as possible.
And let’s be honest; you’ll have other clients and prospecting needs to pay attention to during this process. To do so, you’ll need to learn time management skills to help accomplish all your tasks and not let things fall through the cracks.
To manage your time more effectively, I have three suggestions to take your business to a new level and help you excel during multiple offers.
Get Coaching
First, get a coach to help you.
A professional real estate coach can help you stay focused, devise systems and strategies to help you balance all your tasks, and to set goals as you move forward in your career.
Also, a coach can help you prioritize your daily workload and provide types of productivity to help you grow your business while you’re balancing all the different tasks you have fielding offers for your clients.
Time Blocking
Use time blocking to accomplish more during the day. Time blocking is a productivity hack that is simple to implement but can make you achieve more in less time.
Time blocking is a strategy where you break your day into smaller segments to achieve specific tasks.
For example, break your working day into two-hour segments and fill each section with one task.
During those two hours, only work on that one task.
From 10 am -12 pm, work on prospecting, at noon, move on to another two-hour segment, such as paperwork. Later in the day, plan a two-hour window to meet with clients to discuss the offers or strategies to get listings into a bidding war and get top dollar.
Time Management
Learn better productivity tactics like what I use, the Pomodoro Method.
The Pomodoro Method is a time management and productivity tool used to maximize your efforts during smaller, more intense periods and has built-in rest periods between each period.
Here’s how it works:
- Set a timer for 20 minutes
- Work exclusively on one task for that time
- When the timer expires, take a 5-minute break from any activity related to it
- After 4-5 cycles of 20 minutes on and 5 minutes off, take an extended 15-20 minute break
By breaking your time into mini-cycles, you can achieve more without reaching a point of exhaustion. As a result, you’ll be more productive and have more energy to focus on the next task on your to-do list.
Staying focused and balancing your current transactions with prospecting for future business requires excellent time management skills and a good overall strategy.
It’s easy to get lost in the woods and overwhelmed with all the tasks you need when you have multiple offers and are trying to keep growing your business.
In order to excel during multiple offer situations, it’s essential to become an expert at bidding wars.
Study up on different strategies and hone your negotiating skills so you can make sure your client gets the best deal possible.
Research the market to know what prices are reasonable for specific properties. Also, ensure you’re on top of all current trends to be a step ahead of the competition.
