UNTANGLING THE

Untangling the Bidding War: A Buyer’s & Seller’s Perspectives

In a competitive marketplace, bidding wars become the norm. While this may put sellers in an excellent position to recoup on their investment, it can push buyers beyond their budgets and test their temperaments in the process. As an agent, how do you navigate both sides of the coin? After all, you want to net the best results for your client—regardless of which side of the closing table they’re on. To fortify your approach to a heated bidding war, here are a few ideas and insights to better clue you in on the perspectives of buyers and sellers alike.

Buyer’s Perspective: Emotions Running High? Channel it.

When the market is booming, buyers feel the pressure—especially when affordable inventory is limited. This can create stress, feelings of hopelessness, and impulsivity. As an agent, how do you channel this emotional energy into something positive? Consider asking buyers to put those anxieties and high hopes onto paper. Have buyers outline

who they are, why they’re inspired to buy a home at this juncture in their lives, and how they see their lives unfolding once they become a homeowner (or repeat homeowner). Think of it as a letter of intent. Buyers benefit from taking abstract fears and dreams and articulating them on paper. Likewise, this document can serve as a valuable tool during a bidding war. Letters like these can help sellers with multiple offers make a personal, emotional connection with a particular buyer.

Sellers Perspective: Manage expectations.

When multiple offers are rolling in on a property, it’s easy for sellers to get carried away. Numbers are flying, expectations are heightened, and sellers may become hypnotized by higher and higher offers and ideal outcomes. While it’s good to celebrate prime market positioning, it’s also important to maintain an even keel so that your seller’s mind is clear and they’re thinking rationally through their options. Sometimes the highest offer isn’t necessarily the sure thing. Manage your clients’ expectations by leading by example, offering a balanced perspective, and talking them through all potential outcomes so that they don’t only hone in on the best-case scenario. During a bidding war, tensions are running high for seller’s too, who will soon begin their next chapter in another home. Keep a cool head and remind your client to see the big picture, recognize that it’s possible for some offers to fall through, and to sit tight until the closing table has been successfully reached. When ten or so offers are in the mix, it can be hard to differentiate your buyer from the next. While numbers will obviously do a lot of the talking, you’d be surprised how much of a difference a personal touch can make. Some popular approaches to standing out include personal letters—as mentioned above—tailored to the property. Was the property in question a family home for years? You might have clients detail their dreams of raising a family inside those walls, rather than tear the property down and rebuild something to boost the lot’s value. Including a family photo is also a good tact for personalizing letters in a bidding war. Likewise, little gifts included with your offer can speak volumes about your personality and due diligence as an agent. It may seem a little cheesy, but when sellers are looking at ten near-identical offers, those personal touches can really paint a compelling, personalized picture.

Seller’s Perspective: How powerful is cash?

Data shows that cash offers—typical of investor clientele—double the chances of having an offer accepted. This goes hand in hand with waiving a financing contingency, which also helped boost the probability of an accepted offer, according to research. Cash is king, however, since offers that aren’t completely reliant on comprehensive financing seem to minimize risk for sellers, who are already eager to see a deal go through. Cash deals also tend to go through quickly, freeing sellers up to pursue their next property and move on to new horizons. While not every buyer has the ability to operate in cash, it’s a worthwhile consideration for those in

Buyer’s Perspective: How do you authentically and convincingly convey your interest?

ultra-competitive markets and with liquid capital. While the bidding process can be stressful for agents and clients alike, it’s important to remember that it’s a time of opportunity, too. If you want to make the most of it as a seller, data shows that a personal touch can endear buyers to their seller counterparts. For sellers navigating a competitive process, it’s important to keep a balanced perspective. For agents, here’s the bottom line: get creative, be resourceful, and use all the tools in your arsenal to achieve the best result for the clients you serve.

SUSAN GORMADY

When Susan Gormady and her husband made the choice to sell their house without the help of a REALTOR® , Susan had no idea that it would eventually lead to her career in the real estate business. Having really enjoyed the selling process, and learning a lot along the way, she decided to get licensed in 2013. After quickly finding her footing in the industry, she launched the Susan Gormany Group, powered by Classified Realty, and together with her team she serves the areas North of Boston, with a focus on Reading, North Reading, Wakefield, Woburn and the surrounding towns.

Nicknamed “The Cheerleader” by her clients, Susan’s positive energy helps buyers and sellers navigate the transaction regardless of the circumstances. “The truth of the matter is, people don’t always move for happy reasons. It may be prompted due to a loss of a family member, or a divorce. But I always approach each situation with a positive attitude and try to make it a pleasant and stress-free experience for my clients,” she says. Susan’s high level of service, professionalism, and the ability to connect with people has translated into many repeat and referral clients. “I spend a lot of time trying to get to know the client on a personal level and earn their trust. I don’t want them to feel like this is just a business transaction for me.” Susan has also ensured that clients would have the same exact concierge-level of service no matter which agent on her team they’re working with. “The people I have partnered with are like extensions of myself. We all share a similar approach to business, customer service, as well as a similar philosophy and drive.” With a strong local presence, as well as large social media audience, and savvy marketing that includes professional photography, videography, and drone footage, Susan is on track to close 55 transactions this year, for a total of $43,000,000 in sales volume. But for her, it’s the client relationship that matters the most. “I love the people I get to work with, and I love their stories. It’s an honor and a privilege to be involved in such a huge event in their lives. Aside from getting married, or having your first baby, buying a home is usually a rare event in somebody’s lifetime. So I find it very humbling be a part of that.”

Outside of work Susan belongs to the Women’s League of Reading and helps raise money for the Jimmy Fund. She also loves fitness, cooking, and entertaining family and friends at her house. Going forward her goal is to continue helping her agents succeed and her clients accomplish their real estate dreams. “Now that I have my group I would like to be a great mentor, as well as an amazing resource for them. My business goal is simply to continue to help

as many people as I can.”

For more about Susan Gormady please call (617) 212–6301, email susan@classifiedre.com, or visit www.susangormady.com

TARA McGUIRE & HAPPY FULK

Happy Fulk and Tara McGuire started their real estate business, Happy Tara Homes, less than 5 years ago—but in that short time they have made tremendous waves in the Nashville, TN real estate market. Through their work with both sellers and buyers in residential real estate, they have found a shared passion for homes, the community and for the clients they serve.

With an average of $20 million in sales during each of the past 2 years, they have consistently been ranked in the top 10 agents for their brokerage, Parks Realty. On a market-wide level, they were named Diamond Award winners by Greater Nashville Realtors for their sales volume in 2019 and are on pace to achieve that status again for 2020. “We’ve sold multi-million dollar luxury listings and we’ve also sold homes to first time home buyers,” Happy says. “But we treat each and every client the same and give everyone the best that we have to give.”

One of the unique strengths the pair brings to real estate is their team approach to handling their business. Together, they’ve been able to beat the odds in large part because of their experience working together before joining forces for real estate. For nearly a decade Tara and Happy were a job share team in the sales and marketing department of Nashville’s local NBC television station. “We are so thankful for those years we had together in a corporate environment,” says Tara. “It gave us time to learn our individual strengths and to realize that we could accomplish a lot more together.” When listing a home, Tara and Happy rely on their years of television marketing to tailor customized plans for their sellers. They also take a hands-on approach when helping their sellers get a home ready for listing. “It’s not unusual to see us shopping for light fixtures or staging pieces that will add that extra touch and really make a property shine,” says Tara. “We love putting in that extra time and effort for our clients.”

Outside their careers, Happy and Tara are tremendously active in their community. They are both strong supporters of Second Harvest Food Bank and the Nashville Rescue Mission. Elsewhere, they are deeply involved in their churches and their children’s schools. When not serving clients or giving back, Tara enjoys spending time outdoors with her husband David, children Maeve and Callum and her dog Sunny; meanwhile, Happy enjoys traveling with her husband Bo and their two children, Karlyn and Sam.

Tara and Happy have ambitious plans for their growing business over the coming years. They say their focus will be on continuing to develop a network of personal and professional relationships throughout the region. “We truly love Nashville,” Happy says. “Tara and I both believe in this city and all it has to offer.”

Although buying and selling real estate requires a lot of decisions and can be stressful, Happy and Tara work hard to make it a fun experience. They have found that one of the most important elements to remember during a transaction is communication. “Buyers and sellers are used to having information available at their fingertips, and they want to be in the know every step of the way. We make that a priority during the process,” says Happy.

For more about Tara McGuire & Happy Fulk email team@happytarahomes.com, visit www.HappyTaraHomes.com or call Tara at (615) 521-4663 or Happy at (615) 587-9116