To be honest, I don’t want to talk about this. It’s a defeat and normally I’d much rather talk about victories. The story however does contain an important lesson in what you should look for in your Real Estate professional. So here goes:
I was recently referred to a potential client. After chatting with them for a couple days, we found the exact home they were looking for had just come on the market. The next day, they informed me they had decided to use a different Realtor to complete the purchase.
I hate to lose out on potential clients but it’s a part of the business. You will never work with everyone you meet. This one stung me particularly hard though. I lost to someone who didn’t represent the client properly and they paid a price for it.
The reason they chose the other Realtor was because of loyalty. He had previously represented them when they lost a home in a multiple offer situation. They felt his previous attempts to secure them a home merited that he earn a commission.
They are good people who wanted to reward this guy for his hard work. It’s an admirable decision and I absolutely respect them for it. I thanked them for being honest with me and I sincerely wished them well.
Then I watched with agony as the Realtor utilized a thoughtless and careless strategy. He immediately took away his clients leverage, allowed the seller to drive up the price, created a bidding war and gave the other bidders knowledge of his clients limitations. It was a complete disaster and they lost another home. UGH!!!!
Loyalty is an important character trait to look for in friends and business associates. It’s an important part of my career and my personal life. Look, I still root for the New York Jets; now that’s true loyalty!
The point isn’t that you should be disloyal to people. My point is that when engaging in a Real Estate transaction, you owe it to yourself to make sure your representative is worthy of your loyalty.
Does your Realtor have a strategy for timing your offer, customizing its terms and getting it presented in the most favorable light? Can they use their personality, knowledge and negotiation skills to elevate your offer above the competition? Do they have real and tangible plan?
If the answer to any of these is in doubt, you need to be loyal to yourself and find someone who can represent you properly.
The current King County Real Estate market is extremely complex. Inventory is at historic lows, bidding wars are common and prices are rising so fast that it’s hard to know what a property is really worth. Home values seem to change on a daily basis.
When a desirable home comes on the market, the expectation nowadays is that numerous offers will be submitted and the seller will have lots of leverage. The listing agent will use that leverage to try to get a premium price and favorable terms for their client.
Believe it or not, the winning offer rarely comes down to the highest price. There are so many “moving parts” in a real estate transaction to consider aside from just the highest dollar amount!
This is where a knowledgeable professional has the opportunity to make your offer more desirable without just spending more money.
My team spends every day working in and analyzing the King County Real Estate market. We are constantly devising new ways to help clients win in multiple offer situations. We represent sellers and we learn what most impacts their decisions when looking at offers. We then utilize that knowledge to the benefit of our buyers.
HERE’S THE LESSON FROM THIS CAUTIONARY TALE:
Being unprepared to compete with other bidders in this market is unacceptable. Multiple offers are the new normal and those who prepare in advance win, the others just drive up prices and keep looking for homes.
Before you exercise your loyalty on a Real Estate Broker, make sure that they are being loyal to your goals with their preparation, knowledge and strategy.
Feel free to call me directly to discuss the most effective strategies for winning YOUR new home in this frenzied market.
Thomas R. Foy