“Shopping the price” to get buyers to raise their offer

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Real Estate Agent with Alain Pinel BRE 01367196
http://actvra.in/HGD

“Shopping the price” to get buyers to raise their offerbehind the closed door

In a multiple offer situation, I always prepare a matrix comparing the price, terms and conditions of each offer. After presenting to the sellers, the question is always,

“Do you want to do multiple counter offers?”


Counteroffer is generally done in writing, but there are situations when verbal conversations can accomplish in minutes what may take days and multiple counter offers to accomplish.

Listing agents can call the buyer’s agents and ask

“Is this your best and highest offer? If not, would you like to revise your offer?”


If the buyers agents want to know what they’re competing with, can the listing agent say what the highest price is?

IF the seller authorizes, grants permission or directs agent to disclose the highest price then yes, the agent can disclose.


Without disclosing whose offer is the highest, the agent can say

“That the highest price we have so far is around $XXX.....what we’re looking for is the best and highest and cleanest offer.”


Yes, buyers agents may perceive that as “shopping the price”. But remember that the listing agent works for the seller and is looking for the best deal for his client.

Buyers agent can relay the information to the buyer who makes the decision whether to pursue or to fold.

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Ambassador
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Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Pacita we've had a lot of this going on in Phoenix for a very long time. Muliple bids on just about everything. Highest and best is the only way to fly or buyers wil lose out to another bidder.

Sep 13, 2012 04:07 PM #1
Rainmaker
664,152
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Anna --

The trouble is, some of these folks don't always believe they'd better do highest and best, and continue to hope they would be countered. I had nearly a dozen offers on a short sale and in all cases, I asked each one if their offer is best and highest because my seller wasn't inclined to do a multiple counter offer. When we accepted one offer, the others cried and complained because they weren't countered!

Sep 13, 2012 05:21 PM #2
Rainmaker
1,465,237
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Interesting....we have lots of these lately but in WO mum is the word on prices.

Sep 13, 2012 07:58 PM #3
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Rainmaker
664,152

Pacita Dimacali

Alameda/Contra Costa Counties CA
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