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Real Estate Fight Club

11
Jan 2021

How Do You Handle Two Buyers Who Want the Same Property? EP68

January 11, 2021

On this episode of the Realtor Fight Club podcast, hosts Jenn Murtland and Monica Weakley are duking it out over how to handle when two of your own buyers want the same property. This one gets ugly before it gets pretty!

Episode Highlights: 

  • Jenn has run into the problem of wanting the same house as her buyers but did not compete.
  • Unselfishly, Jenn has given up properties in the past that she wanted to invest in.
  • It happens quite often that agent investors are interested in the same properties as their buyers.
  • Monica chooses to hand off one of her buyers to another agent because she feels it’s the only way to be fair.
  • Jenn has written two offers to multiple buyers that have wanted the same property and she has no problem with that.
  • Monica thinks it’s hard to give your true opinion when you have other information in your brain about another buyer.
  • When one buyer asks about the buying price, Jenn thinks it does not matter if there is another buyer.
  • Due to the sheer amount of total offers on the house from all buyers, Jenn doesn’t see a conflict.
  • Buyers will always have different desires and needs when looking for a house.
  • Jenn believes it’s okay to disclose what you know that helps the buyer make the best offer possible.
  • In this situation, Monica thinks that she could ask the buyer how they would like to continue.
  • Jenn and Monica disagree on what dual agency looks like from the perspectives of the agents and buyers.
  • There is a difference when representing investors and buyers that are going to live in the house.
  • Agents don’t talk about this topic that much because it really doesn’t happen too often.
  • Monica’s final take is that you can only represent one side if you want to avoid splitting your loyalty.
  • Jenn is firm on her stance that you can represent both buyers, but that doesn’t mean it’s a good idea.
  • Figure out why you are uncomfortable with the situation and determine if it’s about you or the buyers.
  • This week’s tiebreaker, Frantz Benjamin, is a real estate agent in West Palm Beach, Florida with Century 21.
  • Taking into account all competencies and incompetencies, Frantz is able to decide which buyer to represent.
  • In the case that both buyers are qualified, Frantz would make sure to show them multiple properties.
  • While he would inform each buyer that there are other offers, Frantz makes sure not to spill any confidential information.
  • It’s important to have a like-kind property as a backup just to give the buyers choices.
  • Educate your buyers as much as possible, but it is their decision at the end of the day.

3 Key Points:

  1. When faced with multiple buyers that have an interest in the same property, Monica chooses to hand off one buyer to another agent while Jenn has no problem handling both.
  2. Each buyer is very different and it’s very rare that multiple buyers with the same agent have the same requirements and limits.
  3. This is more of a hypothetical situation because it does not happen very often. In fact, in some places, dual agency is illegal.

Resources Mentioned: