I have a question regarding systems for fielding offers. I recently had a property with a lot of interest, 3 full price offers among several others. It was a bit overwhelming. I had a hard time navigating the situation. My goal was to maximize profits on the deal without pissing anyone off. Most buyers say “I don’t want to get into a bidding war” when you inform them that it’s a multiple offer situation.
My thought for the future is to announce to my list that it’s a multiple offer situation, then setting a deadline and calling for highest and best. Then not doing any back and forth with individual buyers, just have them submit their offer and choose the best one.
But this system seems impersonal when I’m trying to develop relationships with a lot of good buyers.
So my question is, does anyone have any good ideas or systems for balancing your relationships with your buyers while also maximizing the profits on each deal? Any tips for multiple offer situations and negotiations?
The reality is that most of your properties will probably not be in a bidding war. Although, I have to admit I'd love to have that problem. If it happens every so often, so what. These are professional investors. It is what it is. I'm not saying to be rude or condescending. However, in reality highest and best usually wins. Highest and best isn't always money. You want to consider timing, where are the funds coming from. What contingencies do they have. Are they going to be a frequent buyer. Consider all the factors and pick the best one.
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