This guy suggests that the listing agent should skip the highest-and-best round, and instead, select the offer written by the buyer-agent that they think is most likely to close the deal – after trying to bump them another $5,000 or $10,000.
I like to do the highest-and-best round first to establish a new floor, and then go around to each buyer-agent and give them the number to beat in my slow-motion auction. Selecting an offer written by a buyer-agent who you think can get to the finish line is a critical part of the equation, but not as important as being the highest price.
Why? Because my contest is very specific – the buyer who submits the highest price wins the home. We vet the buyers and agents initially to ensure they are real contenders, and I will take my chances that Donna can get anyone to the finish line.
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This guy wants to hold all the cards in a negotiation and make people come to him begging.
The problem with his technique is the bidders can’t see what the other bidders have offered. They might have more $$$ to spend but don’t want to overspend.
This also sets up a situation where the listing agent knows everything and even the sellers aren’t sure what’s going on. How do you know that there aren’t side deals hapoening between agents if numbers aren’t out in the open and viewable by all? Maybe buyers and the listing agent are colliding to “steal” the house from the owner.
Thanks Shadash and I agree.
He thinks his way is different/better, but it’s just another version of the backroom deal where the listing agent plays God and picks the winner.