Have you ever wondered why agents use Under Contract and Under Offer stickers on signs and adverts? I’ve personally never understood how these tactics benefit the seller.
Think about it, when a seller accepts an offer subject to conditions, that is usually the beginning of a 21 – 30-day process that creates an unconditional sale.
However, the property is effectively OFF the market for other buyers to reconsider during this time. If for some reason the sale falls through, the property now has to be put back on the market and you’ve essentially lost 2 – 3 weeks. All momentum has been lost and the poor seller is back to square one. This happens far too often.
I fully understand why agents want to have the Under Offer sticker up, it shows they have worked very hard to get the property sold and, fair enough, they want to show off that finally the job is done. I find that agents, including myself once upon a time, are intoxicated by transaction and cannot wait to get the Under Offer sign up so that they can brag that they’ve got another one done.
However, if you think about it, the Under Offer or Under Contract sticker serves nobody but the buyer. It completely takes the pressure off the buyer and gives the buyer time to gather their thoughts, do their due diligence, and get their ducks in a row.
If we as agents were not in such a hurry to put the sticker up, a few things would work in the sellers’ and our best interest.
Here they are:
- We could keep the buyer honest to their offer and conditions for fear of missing out as the property is still being marketed
- Keep your options open for a 2nd offer if the buyer doesn’t proceed
- Meet more buyers that you can sell other properties to
- Meet more sellers who are disguised as buyers so you can get more listings
- Demonstrate to the seller you are not giving up until the job is well and truly done
- Get more feedback to reinforce that the offer you have received is a great offer
Sometimes we forget that although we have a duty of care to both buyer and seller, we get paid by the seller, so we need to look after their best interests first. Buyers will usually do what they have to in order to secure the property of their dreams, however, they also need to be kept accountable to their offer so they don’t get the upper hand over the seller.
Always remember, buyers are sellers too, and when it comes time for them to choose an agent to sell their most valuable asset, they will choose the agent that demonstrated looking after the sellers, not the buyers.
At my upcoming FREE half-day Real Estate Brilliance webinar, I’ll be going over my 9 Pillars of Real Estate Success, including Working with Buyers and how to build trust and rapport to ensure repeat and referral business. Make sure you don’t miss out this opportunity! Book your FREE seats now!