How To Succeed Even After You Have Lost In Five or More Bidding Wars

Our team meetings are always very productive as we have over 60 years of real estate experience sitting in one room.  The topics we cover each week with our agents include Weekly Wins, New Listings, New Sales, Opportunities and Hot Topics.

This week's meeting was another winner and we uncovered that we are selling a home every three days (through March).  We also identified, how valuable and important our recent hire has already been for us.

Under opportunities, we uncovered a challenge one of our agents was having with a buyer.  This is a very common issue in today's market where the buyer has lost out on at least five properties that are all going into multiple bids.

The agent and his client were talking about waiting for the market to cool down.  I suggested that even though that does seem logical, it could also hurt his client as the market continues to climb.  

So instead of waiting for a bubble to burst, and trying to figure out the 'right time'  to buy, if his plans are to live here in the Lower Mainland, it could be wise to think a little differently.  I have seen hundreds of people priced out of the market (forever) waiting for the right time to buy.  

My partner chimed in and suggested that the agent go backwards and look for homes that were on the market over the past two years that did not sell.  Then go to them directly and see if they are willing to sell to his buyer.  

This has worked for many in this type of market.  

Now additionally, I wanted to share a few more tips to help you win when it comes to entering a bidding war.

One:  Get all your ducks in a row.

In today's market, whenever I speak with other agents about how their offers went,  the first thing they say that the got rid of all the offers with subject on them.  They didn't even get a chance.  

When there are more then three or four bids (offers), you can generally expect at least one of those offers to come in without any subjects.  

There are always excepts depending on the property, how the agent has set up the process for offers and if there is enough time for the buyers to speak with their banker/ mortgage broker and other professionals.  If you are intent on buying in this environment.  

You should be fully prepared to do all your research on the property PRIOR to offer date.  

This includes having the property PRE INSPECTED so you know exactly what you are offering on and so you understand the potential problems you will face should your offer be accepted.  

Other things you will need to research will include the full strata document package if it's a condo or townhome, clarify there is no in ground oil tank on the premises and be prepared to have a scan done, check with the municipal hall if there have been any issues registered, or if there has been any suites that have been decommissioned or ordered closed, view the Property Disclosure Statement, the title search and check to ensure the property has not been registered as a grow op or drug lab.  

It's always a good idea to type in the address into Google to see if there has been any 'issues' reported in the news or online.  

Since you are buying into a new community, I always suggest walking the area but in the front and in the lane to get a true feeling of what it could be like to live there.  Even park on the street at night and just watch what happens.  

TWO:  If you have NOT met the sellers... connect the dots.

Is seems that most offers today are to be emailed to the seller's real estate agent which drastically reduces the opportunity for you or your agent to use any emotionally compelling stories to help you get the home.  But you don't need to play 'exactly' by the same rules.

That's because as you go through the home, you are looking for potential connection points.  Look at the photos, the furniture, awards, and while you looking at the home, you will be wise to also look at the seller.   See if you have similar hobbies, lifestyle, any family connections (yes look at their pictures on the wall and fridge), religion, groups, etc.

When you find some potential connection areas, draft a heart warming letter that shares your similarities, family values, the dreams and aspirations you can see when living here.  

Keep in mind, if the property is not just an investment, and the sellers have history in the home, there will be some emotions about the move.  Your job is to try and connect the dots.  

Write a heart warming letter sharing all the things you love about the home, how you appreciate what they have done with the home, what this means for your family and how it could impact your life should you get the home.  Share a family photo.  

Be sure to include offer instructions that this is to be presented with the offer.  

THREE: The Bully Offer

I'm not really sure why this is called a 'Bully Offer' but I've heard it called that and I guess it stuck.  And this might be the only time, where the Bully could be a good thing.  

So what is the bully offer?

Well, it's the buyer and their agent saying, we understand the rules you have laid out, but we don't want to play by your rules.  Your rules actually hurt us, so we are going to push our way in the door.

The bully offer is an offer that comes BEFORE all the other offers with the intent to bypass the competing offers.  Using this method usually, your offer will have to be strong enough and compelling enough for the owner to say, "ok, that is a great offer and take it."  

With the real estate 'rules of competition' and clear guidelines being identified for Realtors, it is getting more and more challenging to push a bully offer through.  But it you can get it presented and you use the tips above, you may be able to improve your odds dramatically.

Timing and process are critical for each of these strategies to succeed.  If you want to discuss your buying strategy further, you can reach out to anyone on our team.

B & L Real Estate Group

Kevin Lynch

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