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.
For the past two weeks I have been managing our company’s downtown east office while the manager is away. One of this week’s tasks was running the weekly meeting. Agents are strongly encouraged to attend as it is a good opportunity to connect with the people you are working with and share stories and information. Beside the usual reviews of open house activity and new sales and listings, I centred the topic of discussion on the global nature of business. Our business is real estate, more specifically selling houses and condominiums.
To demonstrate what I meant by global, I set up an example of two agents at a party talking to someone who was considering selling their home. The first agent talks about how historically low interest rates are and how demand is strong. When asked about the future, the first agent believes everything will be good as long as interest rates remain low. The second agent has taken the time to study markets all over the world. He has a clear understanding of the implications associated with grow in the U.S. as a result of modest gains in employment and tax credits to first time buyers. He has taken the time to read the U.S. Fed Report because he follows it on Twitter. He knows that things are “ramping up” in the U.S. He knows that both the east and west coasts are seeing modest job growth and slight improvements in the low end of the real estate markets. He demonstrates to the potential client that not only does he have an understanding for the local market, but knows the economics of the business in general. He comes across as the more professional agent and is likely to make a lasting impression. Not only can he comment on interest rates, but he knows the factors that contribute to rate hikes. The second agent has demonstrated that he is a leader in his field.
The fact of the matter is that whether it is real estate or furniture sales, you will always come across more professionally if you have an understanding of “The Big Picture”.
A good manager/broker/owner understands the need to fill in the blanks for their agents. It is one of the support mechanisms that need to be displayed constantly. The goal is simple; provide the information and the tools necessary to make your agents stand out.
In my next post I am going to talk about other ways we can support our agents. The information in this post may or may not represent the views of Bosley Real Estate.