This was the seller who had a competing agent tell them that I’m tough to deal with because I like to create a bidding war.

The seller took it as a compliment, and I did too. Don’t you want your listing agent to create a bidding war? You would think, YES. But instead, literally all other agents want to be vague about their process, gather up the offers, and go in the backroom to decide the winner they prefer (while denying others the chance to bid higher).

It’s not me they dislike – it’s the transparency that comes with a proper bidding war.

I can see why other agents would jump to the conclusion that I’m tough – because I don’t sell houses as described above. If I was a home seller and I found out that my listing agent was publicly denying buyers with the opportunity to bid and re-bid on my house with verbiage like, “NO MORE SHOWINGS” in my MLS remarks, I’d sue them for malpractice.

Yet, that is the common practice you see happen with the hot listings every week.

There is another agent out there today who thinks I’m tough – the agent who rushed her buyers over to see my new listing within two hours after it hit the open market on Thursday.

Her clients loved it, so she corners me in the living room and tries to bully me into selling the home to her clients for full price cash on the spot. It is a common practice, borne out of the frustration shared by all buyer-agents who get screwed over by listing agents in virtually every sale where there are multiple offers.

I was happy to agree to sell the home to her clients, but not at full price.

But I’d do it for an outrageous price that I thought no one else would pay.

This is when I told her $2,500,000.

If you are a cash buyer, this isn’t your last $2,000,000, so they could pay the $2,500,000 if they wanted to – and I want to give them the chance! I think my sellers would be very happy with that outcome.

But consider what it also sets up.

They didn’t go for my $2,500,000, but they did offer $2,100,000 cash.

They already knew they could buy it for $2,500,000.

So when we officially counter-offered at $2,250,000 in writing, it had to sound way better than $2,500,000. There was a real chance they might sign it!

By now it’s Friday, and this is where agents might think I’m tough. I told the agent that if her clients didn’t sign it, I was going ahead with my open houses to see if we might get other offers.

Here’s where she screwed up, like most agents do.

She goes running back to her clients and tells them exactly what I said.

Their response? “We don’t want to get into a bidding war”.

Well, then sign the $2,250,000. It’s all they had to do to buy their dream home.

But instead they let a measly $150,000 get in the way, which is pennies, relatively – especially when you consider how hard it is to find a newer single-story home on big flat lot at the end of a cul-de-sac which is walkable to everything you need in life.

Why is there such aversion to bidding wars?

Fear of the unknown? Afraid you might overpay? Feel being taken advantage of? Had bad experiences previously (probably the most likely because realtors handle them so poorly that losers can’t help but feel bitter).

Buyers should embrace the bidding war.

It’s the smell test. It means you found a hot buy. A home that you will enjoy, and one that will be easy for you to sell for top dollar some day.

Conversely, if there are no other bidders on a listing that has been on the open market for 1-3 days, what did they see that you missed?

Are bidding wars fun for buyers? No they are excruciating, mostly due to the uncertainty caused by the poor handling by the listing agents.

Instead of telling people I’m tough, agents should consider using my method.

I tell everyone the rules of engagement, spell out what it will take to win, and conduct the bidding war – and myself – in a way that caused maximum transparency. I answer my phone all day and night!

As late as last night, I was communicating with agents who had lower offers. I flat out told them that a deal was imminent with Buyer C, yet if you hit this price, I will rescind our counter-offer and sell it to you instead.

It turned out that they didn’t like the price, BUT AT LEAST I GAVE THEM A SHOT TO BUY IT.

That’s not being tough to deal with – it’s what every buyer and buyer-agent should want: an opportunity.

So when you hear there are multiple offers, don’t automatically bail out. Make an offer and see where it goes. Eventually a good one will fall in your lap.

P.S. The first buyers did re-engage, but then they got caught up on the comps.

I thought we were right in there!