Fear of multiple offers syndrome | REM | Real Estate Magazine
How often have you heard this?
“My clients like the property, but they don’t want to participate in multiple offers.”
I roll my eyes and have the overwhelming urge to respond in my snarkiest voice, “So your clients would prefer to have zero chance rather than some chance? They’d rather wait until there’s an inferior listing that nobody else wants?”
I have to restrain myself, every time.
I’ve had my own clients who suffered from FoMO (fear of multiple offers) syndrome. They heard some obscure story about “bidding wars” and didn’t want to get suckered into paying more than they wanted to, somehow.
“I sure don’t want to get into a bidding war!”
So I educated them. Starting with this: There’s no such thing as a bidding war!
It’s your job to explain how our system actually works and how your clients could still “win” in a multiple-offer scenario without paying a dime more than they want to.
I mean, if there are 14 offers on the property, and they want to write $25,000 under, forget it.
“But I’ve written offers under list and won in multiple-offer situations numerous times in my career. It just depends on the circumstances. The bottom line is if you don’t try, you definitely don’t win.
It seems appropriate to quote the Great One on this topic. “You miss 100 per cent of the shots you don’t take.” – Wayne Gretzky
What’s the worst thing that can happen? You don’t score. But sometimes, you get a fluky one, even if you’re shooting from outside the blue line.
Here’s what I’ve found from experience: Once you’ve convinced your clients that there are zero risks and nothing to lose by giving it an honest try, their mindset shifts.
Before, they were adamant, “No possible way are we competing!”
But after you educate them, “If we’re going to compete, what is the highest price we’re willing to pay?”
Next, they’re asking what you think it will take to “win.” I usually give my clients a range of probabilities based on my experience. For example, “At this price, I’d guess you’ve got a 50/50 shot. At this price, maybe it’s 75 per cent, or at this price, 10 per cent.
But 10 per cent is still better than zero per cent!”
I underscore all this with the standard, “there’s no way to know for sure” speech. Then let them decide. Your job is to provide guidance. It’s up to them to determine how much they want it.
This is not about manipulating your client and talking them into doing something they don’t want to do. It’s the opposite of that! It’s about educating them so they won’t miss out on a golden opportunity for no good reason.
I can’t even count how many times my clients started with a severe case of FoMO syndrome and ended up winning a multiple-offer scenario, just because I took a few minutes to cure them.
Even if they weren’t successful, the experience of writing and submitting an offer was great “practice” for them, and they were far less hesitant – downright enthusiastic in fact –
the next time around. Education is the best path towards overcoming an irrational fear.
Just remember, if your clients are suffering from FoMO syndrome, it’s your fault – not theirs.
This content was originally published here.