Helping Clients Recover After a Declined Offer | Guest Post
Competing against multiple offers is simply part of the process a homebuyer goes through in the Denver metro these days. As a REALTOR®, you know that if your client doesn’t get the home, it’s not a reflection on you or your client, it’s simple math. When a home has ten, twenty or thirty offers on it, and only one can be accepted, odds are against you, even if your client’s offer is one of the strongest in the field.
As a REALTOR®, you’ve experienced this rejection before. For your client, it may be new. Here are five steps I use to help my clients recover from missing out on a multiple offer situation.
1. Remember that losing out on a home is emotional.
You may be used to it, but for your client, this is a big deal. However rational they seemed about the offer and their chances, part of them was picturing themselves in that home, the one they just lost out on. So approach them with empathy. Don’t text or email with the bad news. Pick up the phone and call. Listen to your client, console them and respect their disappointment
2. Reassure your client that they will find the right home.
After losing out once, it’s easy for a buyer to feel like they’ll never find the right place. Explain that this is part of the learning process and that more homes will come along. Remind them that you do this for a living and that you’ve helped many clients find the right home, even after some initial setbacks. They just need patience, confidence and your skill to get it done.
3. Learn why your client missed out.
This can be a bit sensitive, but it’s not a bad idea to wait until the dust has cleared, reach out to the listing agent and ask if they’re in a position to share more about why your client didn’t get the home. I always appeal to the listing agent’s compassion towards the situation and try to return the favor when I’m on the other side. Often, a phone call is better than email for this, as it’s less formal. If the other REALTOR® will share, find out where your client stood, what was competitive and what wasn’t. Was there anything that could’ve been done differently that would’ve gotten the home? As much as possible, share these insights with your client and incorporate them into your next offer. This is how improvement happens.
4. Develop a strong game plan.
Have a strategy meeting before the next house comes around. Your client will be much more mentally prepared if there’s not an actual house involved. Remind them that there are techniques like being entirely financially underwritten prior to making the offer, or adjusting contingencies to be more advantageous to sellers than what the standard Colorado contract stipulates, like being willing to absorb a deficiency in the appraisal and limiting the inspection to just material issues. There are also techniques like writing a cover letter, or offering flexibility on the closing date and terms, all of which your clients may not have given due attention the first time. Figure out exactly what your clients want to do, and how you’ll execute on it when a home that fits their needs next comes on the market.
5. Remind your client that spending more than they’re able isn’t the answer.
While your client may feel it’s easiest and best to throw more money at the problem, remind them that this is a decision made for the long-term. They created a budget for a reason, and if they overextend themselves now, it will have ramifications for years down the line. You want them in a home that they can afford and that they’re happy with. If they vastly over-leverage themselves, they’re not likely to enjoy where they live. Your job is to make sure they get the right home, not just any home.
The housing market in greater Denver is challenging right now -- which means that buyers need experienced REALTORS® who serve as their advocates more than ever. It’s up to us to step up to the challenge.
This article courtesy of Michelle Ackerman, Denver Metro Marketing Manager for Redfin. The views, opinions and positions expressed within this guest post are those of the author alone and do not necessarily represent those of the Denver Metro Association of REALTORS®. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
If you are interested in submitting a guest post, please contact Sarah at sgoode@dmarealtors.com.
