Multiple Offers: Price vs. Strategy

Multiple Offers. A question I have always wondered is…………when representing the Buyer is it the strategy of the agent or highest price that gets the house for the buyer? I say strategy 80%. Perception though seems to be that it is the highest price. Here’s my story. There were 3 offers on the table. The home was a higher end listing. Although it appeared to be in great shape it was over 10 years old so there could have been concerns. We were working with Buyer A. Buyer B and C were different agents with different companies. Client A did not want to go full price and wanted to include a condition upon inspection. Because the theory of being the highest price is what is known to us; many thought we had no chance at the offer. Here’s how we got the home. First; my clients and myself showed up at the home and we presented in person. Buyers B and C did not show up and their agents dropped off the offers and left. This showed motivation on our end and sometimes when you are dealing with people who have an emotional attachment to the house it pleases them that you showed up with your clients. It also allows for immediate changes to be made which is very powerful in multiple offer situations. Second; we made the inspection condition less than 24hrs. We had already booked an inspection for 0800 the next morning. Our position was that it was best for everyone to have an inspection. If we didn’t have a professional inspector looking at the home for the Buyers……..what would happen if on moving day they came in and noticed something? It reduced liability and gave peace of mind. We explained that often in multiple offers inspections get eliminated and that really creates future challenges. Not only did we present a very good point; we created a scenario that is really important but totally avoidable. Since the condition was so short it really wouldn’t waste much time. When it came to pricing; we were only slightly lower than the other offers but we used comparables and explained that the bank will look at the comparables too and rather than pay over asking we wanted to be assured the bank on closing would not provide any obstacles. With the current mortgage situations this really made sense to the logical side of the Sellers. Being that we were there and present and could sign off immediately to any small changes and that the Sellers did think having an inspection would be better for them and give peace of mind; our offer was accepted. Both other offers were higher and free of conditions. Maybe price wins at times…..but…..every home owner also wants to know that when they leave their home……nothing is going to come back and bite them. In this case the Sellers were the original owners so we knew that showing up would have pleased them on the emotional side. It set us apart. All in all if we as Realtors do a little research and go outside the box a little….I believe that it isn’t always about price but rather a good strategy will often win and save your clients thousands.