How to Attract Multiple Offers on Your Listings.

When it comes to selling real estate, the only thing better than getting an offer to buy your listing is getting multiple offers to buy your listing. This is important because obviously the more offers you get the better for you, your client, and your career. If you get ZERO offers then your client will obviously blame if not fire you so if you obtain multiple offers guess who’s getting the credit?   Here’s 3 tips on how to attract multiple offers for your listings:  

#1 – The Auction

This is a sales technique that has always been very popular historically but rarely pulled off effectively. in order to arrange a successful auction you need three main components:

1. An Auctioneer. This is someone or a company with the appropriate credentials and authorization to host a real property auction in the county where the property is held.  This may require a license or permit and this varies depending on the state.

2. A willing seller. Obviously the seller has to acknowledge that the property will be sold at an auction.  They will also need to determine the “reserve price” or the minimum amount they would be willing to accept for the sale to be completed.  This will also give you as a agent an idea of how much you could earn in commission.

3. Marketing and Terms. Most people expect auctions to use “cash only” settlement terms but this is not always the case.  It could be organized where the bidder has 10, 15, or 20 or more days to close the transaction after the bid.  The terms usually state that the binder is non-refundable and is usually a larger amount of the purchase price say 10% instead of a $1000 binder check for most retail deals.  Also, the auction has to be advertised and marketed exhaustively to all the potential buyers in the area or no one will show up.

 

#2 – The Contest

The idea is simple, the seller offers potential buyers a chance to win some impressive prize if they attend an open house or otherwise visit the property for a showing. The idea is that many people will visit the home out of curiosity of the promotion and then they will fall in love with the house and want to make an offer. It has the negative of bringing in some people who only want the contest but then again it’s a numbers game and after enough potential buyers peruse eventually some of them will step up and start making offers.  

#3 – The low-list price

This is one of my favorite property selling techniques. Some don’t like the idea of listing a property at price that’s less than you KNOW you would accept but hey it generates showings, offers, and closings so what’s the problem? The idea is to list a property at a deep discount, much less than you would accept and then as the offers come in you notify each offer of the next higher offer that’s arrived. As time passes the group will compete with one another and typically the buyer will get a great deal and your listing will be sold.     Now it’s over to you what tactics have you used in the past to obtain multiple offers on a listing?   [Image by Kansas Sebastian/Flickr]