I’m a Realtor in an area where multiple offers above asking are very common. This is exactly the technique that I use and I also employ another technique that ensures multiple offers to begin with so that we can leverage, not only the multiple offers, but also leverage removing the appraisal contingency; my state actually has a form that allows this. All potential buyers for properties I list are required to sign one when submitting an offer. This, not only waives the appraisal contingency, but also allows the seller to keep the earnest money if the buyer backs out due to appraisal. It does keep some buyers away but what it does is attract well-qualified buyers and I’m in an area where we see a lot of cash buys or very large down payments. Don't usually see any low ball offers.
Love adding the sellers' favorable terms to Highest and Best notices. Would you refer to this concept to show your expertise when in listing presentations? Thanks Kevin!
So knowingly sell a home for more than it’s worth with documentation proving its lesser value-this tactic artificially inflates values for an entire market?? As if experienced buyer agents won’t see this tactic from a mile away and won’t advise their clients accordingly. Many markets are such that the highest and best offer is logically initially offered already. Though many applaud it, this approach contributes to the lack of affordability of homes, negatively affects us all and defies the purpose of the appraisal itself. Where’s the policing when it’s needed. This is where lawsuits are born, bad settlements happen and an industry unjustly adjusts based on the questionable actions of (hopefully) a few. If each buyer rejects your destructive tactic, then what?? If a buyer’s disgusted by the tactic and withdraws offer, then what?? And we wonder why folks abhor real estate agents.
Great video. So, we're selling a home. 1st day 20 showings and have a couple of offers already. Others said very interested and will be sending an offer. Started list low at $550 and sellers are hoping to get about $630 to $650. Both offers are over asking but still below $600. The question is, how long do you drag these in hands offers and how to work this deal to get close to what sellers want? Any suggestions?
Thank you Kevin, very informative video. I have been rejected 4 times now in the last 6 weeks for amazing houses. I am a first time buyer and for my last two house viewings, I offered £15 000 more than the asking price and yet my offers have been rejected. I can understand that housing market is crazy at the moment during covid-19 pandemic but I also believe there is something that I am doing wrong here, how can someone reject my offer when I am offering about £15000 more than the desired asking price? Reason I got from the estate agent was that the seller went ahead with a different buyer. That's all and I am trying to understand who were those buyers and how am I different to them and what can I do to get my offer accepted.
Green guy here, removing the appraisal contingency means an appraisal is still done but agreed upon that the buyer will pay xamount over that appraisal not to exceed accepted offer price?
Huh? Appraisals are typically ordered by EACH buyer separately. Appraisals by different appraisals are unlikely to come out identical. A seller can renegotiate if the appraisal comes in low. The deal doesn't have to die.
i heard your suggestion as to how to handle multiple offer situations. It makes sense. My question and scenario is totally different. You have a listing for 225K. You are in possession of multiple buyers and both the offers are way low. Is it ethical and legal (I am in Texas) Can you both the buyers send a letter *thru the selling agents that You have more than one offers for the property. To be considered for the buyer of the property, please offer at least 218 K or more by Feb 5 before 5 p.m.?
In our market we use tell the buyers agent we have multiple offers, please submit your buyers "Highest and best" by a certain date and time. This allows them to come back with hopefully a higher, better offer.
I’m a Realtor in an area where multiple offers above asking are very common. This is exactly the technique that I use and I also employ another technique that ensures multiple offers to begin with so that we can leverage, not only the multiple offers, but also leverage removing the appraisal contingency; my state actually has a form that allows this. All potential buyers for properties I list are required to sign one when submitting an offer. This, not only waives the appraisal contingency, but also allows the seller to keep the earnest money if the buyer backs out due to appraisal. It does keep some buyers away but what it does is attract well-qualified buyers and I’m in an area where we see a lot of cash buys or very large down payments. Don't usually see any low ball offers.
BLACKMONGOOSE13 In which state do you reside?
Great advice!
Love adding the sellers' favorable terms to Highest and Best notices. Would you refer to this concept to show your expertise when in listing presentations? Thanks Kevin!
Thank you kindly!!!!!
Awesome! This video helped secure a fantastic deal last week.
Just subscribed--excellent information presented in a clear and complete manner. Thanks!
Great advice Kev. Thank you...
Fantastic info. Thanks Kevin!
Thank you for making this video!
Very Helpful Tips Kevin. Thanks man
This is Genius !! thank you for sharing
Good info. Thanks Kevin....
So knowingly sell a home for more than it’s worth with documentation proving its lesser value-this tactic artificially inflates values for an entire market?? As if experienced buyer agents won’t see this tactic from a mile away and won’t advise their clients accordingly. Many markets are such that the highest and best offer is logically initially offered already. Though many applaud it, this approach contributes to the lack of affordability of homes, negatively affects us all and defies the purpose of the appraisal itself. Where’s the policing when it’s needed. This is where lawsuits are born, bad settlements happen and an industry unjustly adjusts based on the questionable actions of (hopefully) a few. If each buyer rejects your destructive tactic, then what?? If a buyer’s disgusted by the tactic and withdraws offer, then what?? And we wonder why folks abhor real estate agents.
Great video. So, we're selling a home. 1st day 20 showings and have a couple of offers already. Others said very interested and will be sending an offer. Started list low at $550 and sellers are hoping to get about $630 to $650. Both offers are over asking but still below $600.
The question is, how long do you drag these in hands offers and how to work this deal to get close to what sellers want?
Any suggestions?
thanks bub
This is great. Thanks!
Thank you Kevin, very informative video. I have been rejected 4 times now in the last 6 weeks for amazing houses. I am a first time buyer and for my last two house viewings, I offered £15 000 more than the asking price and yet my offers have been rejected. I can understand that housing market is crazy at the moment during covid-19 pandemic but I also believe there is something that I am doing wrong here, how can someone reject my offer when I am offering about £15000 more than the desired asking price? Reason I got from the estate agent was that the seller went ahead with a different buyer. That's all and I am trying to understand who were those buyers and how am I different to them and what can I do to get my offer accepted.
what if there is a seller concession?
Green guy here, removing the appraisal contingency means an appraisal is still done but agreed upon that the buyer will pay xamount over that appraisal not to exceed accepted offer price?
Huh? Appraisals are typically ordered by EACH buyer separately. Appraisals by different appraisals are unlikely to come out identical. A seller can renegotiate if the appraisal comes in low. The deal doesn't have to die.
Would you be concerned about not getting any new offers back?
Ok but why wouldn't you just have the buyer put more cash in to make up the difference 🤔
Man, you remind me of Jeff Bezos! Thanks for the tips!
Why are appraisals happening after offers are made? Would think the appraisal is done before listing
Huh? Lenders require their own appraisals.
i heard your suggestion as to how to handle multiple offer situations. It makes sense. My question and scenario is totally different. You have a listing for 225K. You are in possession of multiple buyers and both the offers are way low. Is it ethical and legal (I am in Texas) Can you both the buyers send a letter *thru the selling agents that You have more than one offers for the property. To be considered for the buyer of the property, please offer at least 218 K or more by Feb 5 before 5 p.m.?
In our market we use tell the buyers agent we have multiple offers, please submit your buyers "Highest and best" by a certain date and time. This allows them to come back with hopefully a higher, better offer.