fbpx

Listing Agents Handling Multiple Offers

The frustration among buyers on how listing agents handle their multiple offers is continuing to mount.  Because there isn’t any guidance from the industry, listing agents just make it up as they go – and in most cases, they just pick their favorite without any thought of other solutions available.

Here are more ways I’ve seen sellers leave money on the table lately:

Listing agents selling homes during their Coming Soon period, denying any other buyers.

Counter buyers for their highest-and-best, but then accept one within minutes before other responses are received.

Only countering some of the offers.

Off-market deals, which are great for the winning buyer, but bad for seller and other buyers.

The worst part is that sellers don’t have a clue – they are just happy to sell for more than expected.

When I’ve suggested my method to agents, they have trouble grasping the concept – that’s how deep the current snatch-and-grab mentality is ingrained in agents to make a quick deal.

What’s the solution?  List your home with me!

How We Do It

Peak efficiency in this insane market deserves more examination.

Specifically, the listings that have so many showings that some buyers get shut out, but then only a small minority of them submit an actual offer vs. quality presentation and pricing that gets a better mix:

Every buyer and buyer-agent should get a chance to compete.

La Costa Quick Sale

A cash buyer acted quickly to snag this 1978-built one-story at the top of the hill in Old La Costa.  The sales price of $1,201,500 (list was $1,048,000) and a two-week escrow was good enough for the seller, who I think was the original owner:

Del Mar Rancho

This has a Del Mar address but Sun Valley is east of the 5 and feels more like Rancho Santa Fe, its neighbor down the street here. This sold for $2,675,000 last June, which seems like a relative bargain today:

Double Up!

This is a good example of how prices are popping in Olde Carlsbad.

This sold for $675,000 in 2014, and listed last month for $1,149,000.

It closed this week for $1,385,000, which is 21% over list.

The price more than doubled in less than seven years!

When The Frenzy Busted Loose

The real estate market was boisterous in last half of 2020, which made it easy to predict that once we got past the election and into the new year we’d probably see the Greatest Real Estate Frenzy Ever.

Let’s use February 22nd as the day the frenzy really kicked in.

It was the day that this home was listed for sale, after a troubled past:

2005: $679,000 Sold (vacant lot)

2007: $550,000 Sold (vacant lot)

2008: $2,000,000 borrowed from WaMu

2009: House built

2015: $2,137,500 WaMu/Chase FORECLOSED

2016: $1,930,000 Sold

2018: $2,875,000 listed for sale for the next 18 months

2019: $2,044,000 Borrowed in January

2019: $2,225,000 last list price before FORECLOSED

2019: $1,540,000 sold at trustee sale 12/27/2019

2021: $2,595,000 listed for sale

2021: $2,840,000 sold 4/6/2021

Timing is everything!

When Will the Frenzy End?

Let’s call it the Big Confluence:

  1. Covid concerns keep diminishing over the next few months.
  2. More sellers feel safe to put their home on the market.
  3. More sellers find a way to hurry up and get their home on the market.
  4. Buyer skepticism rises.
  5. Agents get too cocky.
  6. Prices reach their limit.

All the above will cause inventory to increase, and buyers to relax. Then what?

This is my craziest theory of all-time:

Pin It on Pinterest