My client wants proof there is another offer on the table. What can I provide him to ease his mind?

Asked by Connie Mitchell, South Padre Island, TX Wed Jul 17, 2013

I am drawing up a purchase contract for my client. I have just been notified by the sellers agent another purchase contracted has just been submitted. My client believes this a tactic used by realtors to push buyers into making higher offers. He believes this second contract is fictitious. Any suggestions?

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6
Annette Law…, Agent, Palm Harbor, FL
Wed Jul 17, 2013
"Dear buyer, remember when we started looking at homes, I made you aware, when you find a home you like, you can be sure others will like it too?" That is why to good homes go fast. The listing agent notifed us of the other offer, NOT TO GET YOU TO UP YOUR OFFER, but simply to exend the PROFESSIONAL courtesy TO ME, of letting us know there is a time limit on the other offer. This PROFESSIONAL courtesy TO ME allows you the opportunity to make your choice rather than allow others to choose for you. The alternative to this is to inform you tomarrow, the home has already sold. Make a fair market value offer that reflects what the home is worth to you and don't let your suspicions derail your goals.'

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
2 votes
Karen Halpin, Agent, Virgina Beach, VA
Thu Jul 18, 2013
I also agree with Annette. If your buyer is new to the process, education is paramount in securing a smooth transition from offer to closing. If my buyer is not trusting the process, it usually means they may not be trusting me. Do what you need to do to solidify your relationship with your client. Make the call to the other agent.
0 votes
Judi Monday,…, Agent, Green Valley, AZ
Thu Jul 18, 2013
It is a huge risk for a listing agent to lie about another offer when there isn't one--not to mention unethical. Unfortunately there is nothing to do to verify whether there is one -- all you can do is alert your client to what you've been told and if he doesn't believe make sure he understands the risk of losing out to the other party.
0 votes
Mack McCoy, Agent, Seattle, WA
Wed Jul 17, 2013
I don't think you can do anything, Connie. Here in Washington, we have an MLS-provided escalation addendum that requires the benchmark offer to be attached. Without having a tool like that at your disposal, I think that all you can do is ask your client how they want to proceed.

Back in the day, it was common for sales educators to talk and write about "overcoming objections," but I do not subscribe to the notion. If a client thinks something that clearly isn't true (torch down roofs last longer than tile roofs), then correct them, but I look at objections like this as a way to avoid moving forward. And, if the client doesn't want to move forward, then I don't think we should stop them!

In my opinion, listing agents put their sellers at risk by lying about the presence of other offers. It is a Realtor® COE violation to do so, by the way. The risk is simple - they don't really have an offer, and they scare away the person that really was going to write one.

Good luck, Connie! All the best,
0 votes
Akil Walker, Agent, Upper Marlboro, MD
Wed Jul 17, 2013
Hi Connie


2 choices at this point submit an offer or not.

I think Annette statement hit it on the head. if the property is priced right the listing agent will probably receive several offers. If there is an offer or not , your client still has the opportunity to submit an offer at a price they feel comfortable offering.

If your client choose to wait you may be to show them in a couple days the property is under contract in MLS maybe they will be you then.

Good luck
0 votes
Joan Lorberb…, Agent, Boca Raton, FL
Wed Jul 17, 2013
Annette nailed it! And since there's a minimum of 25 characters I'll say it again - Annette nailed it!
0 votes
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