In hot real estate markets like San Francisco, buyers need to know that their offer won’t be alone. And that’s where a good real estate agent comes in — to help make that offer standout and educate that buyer on what they need to do to be competitive.

Jeannie Gant

For Jeannie Gant broker and partner at Dot Real Estate in San Francisco, there are a couple of things she likes to do. First, she creates a relationship with the listing agent, she told the crowd at Inman Connect in Las Vegas.

“If you don’t know the listing agent, find someone who does, someone in your office who can vouch for you,” Gant said.

Knowing the listing agent well can give you an advantage in asking that agent how many offers they received for a certain property. Then you know, even if your client missed out, exactly how many other buyers missed out and what they offered, so you have a sense of your competition for the next property.

Gant also likes to find out what the seller’s motivation is to learn exactly what they can do to make the offer competitive and enticing.

Jodi Halldorson

Sometimes it’s difficult for clients to wrap their heads around coming in way above asking price, but preparing them is important.

Jodi Halldorson, broker associate and assistant brokerage manager at Park North Real Estate in San Francisco said it’s important that the client understands that it’s not the agent wanting you to offer one number, it’s what the stats are telling the client they need to offer.

“The easiest way to have a client understand the process is to show comps,” Halldorson said. “In this market, we’re used to seeing things go over asking price. Across the country that may not be the case. But hard numbers are not going to lie.”

Kevin Birmingham

Kevin Birmingham, the broker of Park North Real Estate in San Francisco, has a bit of a different tactic for clients: Let them fail.

“It’s called training your buyers, and it’s basically letting them fall flat,” Birmingham said. “You can explain, you can show them the comps … you can do all of that, and they understand, but when it comes time, they see it priced at $995,000 for a home that’s going to sell for $1.4 million, it’s hard for them to come up $400,000. So let them write what they’re going to write.”

Birmingham said it’s things as simple as telling them they should use a reputable lender versus some lender they found online or that they should write a love letter telling the seller who they are.

“You tell them all these things, and they don’t think it’s that important, and then you let come in seventh out of 10 offers, and they kind of get an idea,” Birmingham said.

The other thing he always tells sellers in a competitive market is: “Do not fall in love.”

“You’re going to find something, and they’re going to say, ‘this is the perfect house,’ and even if they come in and write a really good offer, you’re just going to lose out to someone who is all-cash or someone that is willing to go $150,000 above any justified comp,” Birmingham said. “So you really have to have people prepared.”

Email Patrick Kearns

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We're giving away 3 free ICLV tickets at Connect Now next week. Register and attend live for your chance to win!REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription