John Carle from our team had a listing in a highly sought after neighbourhood and we knew it would go quickly for a great price. We aggressively marketed the home, delaying offers until after it had been on the market. Sure enough, we have 2 competing offers despite it being a slow market at the time.
John arranged for both agents to meet with him at the house to present their offers; that’s how we did it back then!
THE PROBLEM
Agent with offer #2 showed up early. She had a busy morning and hoped to present early and move on with her prescheduled appointments. Since John was already at the house, they agreed that she could present her offer. All went well; her offer was clean and over list price.
She left and we waited for agent with offer #1 to come and present. He didn’t show up at the designated time. He wasn’t answering his phone, and his office couldn’t reach him. He finally answered his phone an hour after his appointed time; only to say “my clients have decided not to proceed.”
Now the sellers have seen the other offer, an offer the buyers wrote based on competing with this other offer. Were they not competing with another offer they likely would have offered less and had conditions like a home inspection.
The agent with offer #2 was not happy to receive the news. She accused John of being dishonest, and was really upset that her clients were in this position. They were going to withdraw the offer entirely, leaving the seller with no offer at all.
THE SOLUTION WE FOUND
On John’s suggestion the agent called her managing broker for advice. This was getting messy and ugly; she needed advice from someone she trusts.
This is where strong relationships really help. Her managing broker knew John well, and explained to her that whatever solution we came up with she could trust John to be honest and act with integrity. He was able to calm her down, and she returned to the negotiation.
John suggested that we complete the sale with these buyers at the asking price, lower than their offer but better than the seller would likely get from a single offer. He further suggested that the buyers be allowed to put in a condition of inspection, which they initially removed in order to make their offer more attractive.
He explained to the agent that, if they reset and waited a few more days there was a very high chance of multiple offers again. This would let the buyers get a great home and keep the transaction alive, honoring the sellers’ promise that they’d review the offer that day.
THE RESULTS
The sellers were comfortable accepting the new transaction; asking price was more than they originally dreamed for and they wanted the house sold. The buyers accepted because it was less than their top price and they really liked the house.
Because we were able to diffuse the high emotions, everyone won. The house sold, the buyers were able to do their due diligence, and everyone involved could hold their heads high for having integrity and acting honestly.
This was 20 years ago. Today the value of the house has more than tripled and the buyers are STILL in the home. They’re happy. The seller moved to St. Albert where they got a great great home that they enjoyed for nearly 10 years before John helped them find their dream acreage.
John has worked with both agents several times since then. He treads carefully with the agent who didn’t show up, and he has enjoyed great transactions with the agent who did show up; they have healthy mutual respect.
