9 minute read
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.
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 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.
Buyer’s Perspective: How do you authentically and convincingly convey your interest?
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.
MELANIE SOMMERS
“After twenty-one years in the business, I remain completely hands-on,” says Melanie Sommers, a top agent with Compass Realty in California. “That’s the core of what my clients relate to and appreciate. They tell me that they feel like they’re my only client, which is such a great compliment. That goes for my buyers and my sellers. That’s a huge part of my success.”
Based out of Santa Monica, Melanie first got started in real estate after the birth of her daughter. “I used to run national sales for a clothing manufacturer,” she explains. “But it meant a lot of travel. I love sales, and I met a couple of real estate agents who thought I would be a perfect fit. After my first year, it really took off. I love it.”
Her clients are definitely happy that she decided to pursue becoming an agent. Her business is built almost entirely on repeat and referral clients. In 2020, Melanie ranked within the top twenty-five realtors at Compass in southern California. Melanie credits this accomplishment with her listening skills. “Real estate is something where you really need to focus on your client,” she says. “Listening is an extremely important skill that serves you and your clients well.”
When it comes to marketing her listings, Melanie loves to utilize professional photography and online marketing strategies. “Every property deserves a beautiful website,” she says. She maintains a strong social media presence on platforms such as Facebook and Instagram. However, for all she loves the digital approach, Melanie isn’t limiting herself. She is a big believer in advertising properties in local and national papers. She says, “I spend most of my money on advertising my properties!”
Melanie is deeply involved in her local community, giving both her time and money to support charitable organizations. She is involved with various foodbanks and organizations in the area, including a foundation for cancer research. She also fosters rescue dogs. Her fifteen-year-old dog is a foster that stuck around permanently.
Outside of working hard for her clients or giving back to her community, Melanie stays active. She and her husband enjoy taking lengthy walks together. She also loves to cook or to settle in with a good book. She looks forward to traveling and spending time with friends and family in the coming year.
Looking to the future, Melanie is planning to grow. “My business has grown each year,” she says. “In 2020, compared to 2019, my volume increased over forty percent.” While she does not expect that rate to continue, she is planning to continue expanding, including taking on additional team members.
To learn more about Melanie Sommers, call 310-418-0343, visit www.melaniesommers.com or email melanie.sommers@compass.com
LYNNE STEINERT
Known to many of her clients as the “Condo Queen”, Lynne Steinert has been helping buyers and sellers accomplish their real estate goals for over 18 years. Lynne first got into the real estate business by purchasing investment properties. “I loved the idea of bringing old homes back to life,” she says. After quickly falling in love with the process, she decided to take a chance, get licensed, and leave the corporate world for a fulltime career in real estate. She currently works at RedKey Realty Leaders and specializes in Downtown and The Central West End of St. Louis. She is also an expert in Kirkwood, Webster, South County & South St. Louis City.
Lynne takes pride in always providing her clients with a high level of customer service and tending to their needs throughout the entire transaction process—a trait which has earned her many repeat and referral clients. “I believe my clients truly appreciate my ability to listen to them and take the time to understand what their needs are. Whether it’s a buyer or a seller, this process is an emotional experience for everyone, and every client has a different goal and a time frame in which they want to achieve it. I do my best to make this a fun and stress-free process for them.” Lynne also focuses on forming long-lasting bonds with her clients and supporting them even after the transaction is over.
Her love of helping people find their dream home or helping them sell their property in order to start a new chapter of life, and her expertise and passion for the St. Louis real estate market, have made Lynne quite popular with her clients “I am a very social person and I love working with people and helping them accomplish their real estate dreams. I think my passion for this job truly shows when I’m with my clients, and it makes them excited for the process.” Lynne’s strategy for success focuses on highlighting the assets of the property to make it appeal to the largest number of buyers. From staging to videography, drone videos and professional photography, her customized marketing plan focuses individually on each home or condo. Various social media platforms such as Facebook, LinkedIn and YouTube are also a key to her success, as well as strong relationships with other agents.
Outside of work Lynne enjoys spending her free time with her family and friends, as well as a couple of four-legged companions she tends to—her horse and two dogs. She is also passionate about exploring the many historic neighborhoods around St. Louis.
In the future Lynne is interested in adding to her own real estate portfolio through more investments. Professionally, she hopes to continue expanding her business. “I am looking to grow my business in many different ways. I have already added more members to my team so that we can assist clients better and allow for more one-on-one time with them to better understand their needs. At the end of the day my focus is prioritizing my clients and ensuring that we meet their real estate goals.”
To learn more about Lynne Steinert, please call (314) 443 – 5542, email steinert.lynne@gmail.com, or visit lynnesteinert.com
