Register First and Stake your Claim or Swoop in at the Last Moment?
Happy Tuesday. I’m not sure how I feel about being back to work after a long weekend. It seems like there is a lot more to do when I come back from an extended weekend. Today was no exception as this afternoon I headed to the Bosley Real Estate HQ for our last Bosley U class (our in-house new agent training program).
Today, as part of our discussion on offers, we spent some time on the registration process. The question came up about when to register an offer. One school of thought is to register at the last-minute, come in to table with a strong offer and a short irrevocable time. This is very much a bully tactic that has worked over and over again, however if not played right, can offend more often than be successful.
The other theory is to register early. Registering early has a number of benefits. First off it has the potential of scaring off any potential buyers who are afraid of multiple offers, but more importantly, a registered offer keeps you in the know because a listing agent must contact you if he receives a bully offer or any other change to the listing. Here’s an interesting story that may illustrate how not registering can cost you big time. Agent Smith has a client who is desperate to buy a house on Major Street. After many months of looking, a perfect house comes on the market through another listing company. Agent Smith is unavailable to show the house so he tells his client to pop into the open house on the weekend. The client falls in love with the house and informs Agent Smith to prepare an offer for presentation on offer night which is in three days. A couple of days before offer night Agent Smith is checking the computer and realizes that the house on Major is listed as sold. He calls the listing agent who tells him that they received a bully offer yesterday. The listing agent tells Smith that he changed the listing to remove the offer date and called everyone who showed the property as a courtesy and managed to drum up one additional offer. Smith now has the dubious honour of telling his client that his dream house was sold from underneath him.
What went wrong? Agent Smith should have done a few things. First, even though he wasn’t at the showing, he could have called the listing agent and made him aware that his clients were coming. Next he should have called the listing agent as soon as he knew his client was interested and asked to be kept in the loop. At the very least Smith probably should have checked the listing a couple of times a day OR could have booked a showing for the morning of offer day because he would be in the listing agency’s computer. Better yet, he should have prepared an offer, even basic in nature, and had his client sign it so he could officially register.
What about you? Do you register early or swoop in last minute with a good offer and short irrevocable? Or does each case call for a different tactic?