Lost that offer by $1000. Here’s the perfect comeback.
Here is my tip of the day. We’ve all been on multiple offers. Sometimes we win, sometimes we lose. In the losing category there are different levels of loss, but one of the most painful is the loss by a few thousand dollars. Ouch. Simply speaking, these types of loses tell you one undeniable fact….You know what you are doing! You have done your research, you know the comparable properties in the neighbourhood, you know the homes strengths and weaknesses, and have pinpointed the value…almost. Conversely, don’t let getting blown out of the water make you crazy. Losing by $50k or more, while painful, sends a much different message. It could be read as…not educating or preparing your buyer, not understanding the neighbourhood or market, or simply not reading the signals given off by the facts (number of offers for instance). There is one other thing to consider…Sometimes it just happens because you just never know what the motivation is of the winning bidder. They may have lost out a few times before and are willing to just throw everything, including the kitchen sink, at the next house.
There is no question that the GTA market has its challenges. The media has thrown a lot of coverage on the fact that there is a supply issue and with demand at peak levels, the simple economic rules of supply and demand prevail. Consider the latest news of over 80 offers on a home in Brampton. The truth is that the biggest bag of money wins 99 out of a 100 times. To increase your odds when you don’t have the most money check out my tips for increasing your chances here. For those that lose out it is important to have a comprehensive debrief of the bid with your clients the next day. Stay positive, share what you’ve learned and then move on to the next one.
Awhile ago I wrote a post about having to lose a few in order to build trust with your buyer. Many agents in my office have experienced this from time to time. Agents who are dealing with first time buyers are more susceptible to this phenomenon because those buyers are a little more concerned with paying too much or getting financing. They are still finding their footing. The process of educating the buyer might take several weeks, even months. You may have to look at a lot of homes too so keep a record of what they have seen and let them know what they sold for. It is important to point out some things about each house and make notes about what they liked and didn’t like because after a while all houses will start to look the same. At the end of the day, your perfect comeback is, “hey, we know what we are doing”.
Mark McLean is the Broker/Manager at the Bosley Real Estate Queen St W office, the Immediate Past President the Toronto Real Estate Board and a director at the Ontario Real estate Association. The opinions expressed here do not reflect the opinions of TREB, OREA or Bosley RE.