The Hot Potato Strategy: How Smart Agents Turn Rejections Into Closings

I was like, here's the thing, there's obviously some interest. They came back at another price. Still not what we're looking for. Let's just reject or let's just counter. Even if it's $5,000, like, at the end of the day, would you take $5,000 less? And he said, yes. And I'm like, okay, great, let's just counter that. They'll see that they're. You're. We're not in this $25,000 boat, right? Well, lo and behold, in the meantime, another shine comes in. Guess what, we're in counters now, right? So another showing. They now know that there's another offer on the table. So guess what? We end up in a multiple counter situation. Welcome to the Leading Lane podcast for Real Estate Pros by Real Estate Pros with your hosts Ashley Frederick and Steven Burch. If you're looking for an honest, authentic and raw perspective, you found it. Welcome everyone, back to the Leading Lane podcast. Thank you for joining us once again. So, interesting topic as I've had a couple of things happen in the weird market that we're in right now and we thought it would be a great opportunity to talk about if you let a transaction more or less like, die in your hand kind of the way that I always say it. So I have always said that I don't want to have a transaction die in my hands. I will leave it to someone else. And I heard another interesting story and I think I have an interesting story as a recent to relate as to why you don't. Now, will I say that there are times that you should just reject an offer. I mean, there are some times that maybe we are just so far apart that it is unrealistic. But you know, this relates back to probably, you know, 10 years ago when we would write offers like $60,000 off of asking and people would reject, but also people would just counter and then lo and behold, they'd come to an agreement. So what are your thoughts about when you get a low ball offer and you're representing the seller or you get a counterback when you're representing the buyer and you know your buyer's like, but let's just reject and walk away. So I think like back in the day, right, like I'd be like, yeah, let's reject it. Let's not even, let's not even mess with it. But I think that's what everybody else, that's the easy button to be able to do it. And I think that also with that being said, there's agents put their ego in that. And so once I figured out that agents are putting their ego in it and they're trying to lowball because of me or whatever the reasoning behind it is, right? It's easier to, it's almost like killing them with kindness, right? Coming back with like cool, like I'll, I'll match your energy. And even if I now want to do a, a counteroffer of full price or where we're at and what these terms are, and I think that it's a power play of being able to stand firm of what your true non negotiables are or what you're not willing to come off of. But once they start coming back on those offers, even like, even if it's a little bit, you know what, you can start identifying the variables that are important to the Other party. So it's, then it's easier to start wedging down into it. What is the real reason why we're trying to play hardball? What is the motivating factor? Is it really the price or is it really the closing cost or closing date, whatever it is. But if I'm the one that completely rejects it, I don't get to learn about where that Other person is from their side. So I think it's a, it's a stance of a learning opportunity. And if it's not going to go anywhere after you counter, it's not going anywhere when you reject it. So what does it matter, right? I mean, I can't tell you how many times in a transaction a seller wanted to reject. I mean, because it's also an emotional transaction for the seller, right? So they're offended and they just want to reject. And there are so many times that I just literally was like, I don't care if we counter at asking. Yes, we just counter. And you know, it's just amazing how many times like maybe that seller or that buyer comes back with something more realistic, right? They were testing the waters that obviously didn't go well for them. Now they've seen that the seller isn't willing to negotiate on, on much, but now they've come back with maybe they were, you know, originally $20,000 off and now they're $5,000 off. Can we now have a discussion where, you know, so many Other agents I think are just again, they put their own emotions into it, they let their sellers emotions get into it and then they just reject it in the, and the transaction's over. I'm just thankful that my sellers are trusting me that I don't care. I know. It's just, it's going to take you 5 minutes to sign this piece of paper. Let's just do it. And how many transactions have actually come together? I mean, significant amounts of transaction. I think that's one difference between, you know, agents is agents that are willing to put that extra effort in to take the five minutes to do a counteroffer and the ones that I feel like are somewhat lazy and just want the easy button of nope, we're done. Like, is that really in the seller's best interest that you're not even trying a little bit more? No, not at all. Like, and also too, like, I think that people were so focused on the negotiation between buyer and seller. Let me see if I can frame this properly to make sense. I personally think the real negotiation starts with me and my seller or me and my buyer, whoever I'm representing. Right. So I think there's two different sides of the negotiation coin here. It's your client that you with the you and the you as the agent and your client. And then when you get a, a co op deal, the Other agent and their client and then now how do we marry all of that together? Because you get to be able to see truly both sides of the coin and understanding what are the motivating factors for the seller because they are emotional, because they are offended or whatever. They may not see that some of these aspects may work in their favor with what their goals are and they're blinded because of their, the rejection or their being so offended. So I try to negotiate with my client first of understanding where they're at. If that makes sense. Then let's get bring in the, the co op side. I think it's even something that, that could be part of your actual listing presentation or the first time you're meeting with the seller. Right. Like these are the things you're explaining to them and why you're different to work with is that I'm going to be honest with you, like, hey, we might get a low ball offer. Don't take it to a fence. We're just going to counter. So I had one not too long ago. And I think this is where it also comes into play as to why you, why you do counters. And especially in this market, because this market is so interesting right now. It's either like things are moving, they're not moving. It's so strange. Depending on the price point that you're in, at least in our area, and somebody wrote a very, very low offer, it was messy. The Other agent, messy, whatever. I don't normally say reject, but it seemed like there was no common ground for whatever reason. So sometimes I think, you know, if it's the right place, like a rejection can also wake up that buyer. Like, oh, that might have been a little too far off the boat. So we rejected. And I did just say, like, you know, this is just on the extremes. If they want to come back with something a little bit more realistic, we're happy to entertain. So I think it was like two days later, they countered and they came back with something still, like, not even in the boat. Right. But I said, and the seller wanted to reject again. And I was like, here's the thing. There's obviously some interest. They came back at another price. Still not what we're looking for. Let's just reject or let's just counter. Even if it's $5,000, like, at the end of the day, would you take $5,000 less? And he said, yes. And I'm like, okay, great. Let's just counter that. They'll see that they're. You're. We're not in this $25,000 boat, right? Well, lo and behold, in the meantime, another showing comes in. Guess what? We're in counters now, right? So another showing. They now know that there's another offer on the table. So guess what? We end up in a multiple counter situation. Nobody knows how far apart we were on the Other terms, right? We. Some. Sure, maybe we're $20,000 apart on one and 10 on the Other, but neither party knows that. All they know is that there being multiple countered. So sure enough, I mean, they got an accepted offer, 5,000 off of asking when it started, you know, originally at like 40. So that time that you bought, right, with them being encounters, multiple counters played in their favor. Had you just rejected it, not done anything with it, and a new offer came in, There was no advantage of having another offer to play against them. So that is one prime example of how just countering them, even though we were so far apart, ended up in their favor when another offer came in. Well, I mean, there's no sense of urgency, right? Like now because they think that, oh, the market's slower or whatever their. Their rationale is, right. Like, now that they physically seen that they potentially could be losing out and somebody else could be winning, that brings a little bit more of the urgency factor to it. And they let's. Let's jump on it before somebody else can take it. Absolutely. Like, but you're totally right. If you didn't take that opportunity, you wouldn't have had that leverage to be able to position it that way. And making the Other party see how far they were truly or how wackadoodle they were acting, right, Being that far under. But. And you know, even with that being said, like we had an example here that we had some land that sat on the market for about a year and the another agent called and basically was like, hey, like this is lowball offer. Like we don't even want to write it up if they're not even going to entertain it. Like I'm, you know, but I'm just reaching out. And we were like, no, just write it up. Let's present it. I mean, it's had a birthday with us. Like we, the goal is to get this property sold. And they, they were actually resistant to even write up the offer and submit it. And we finally got them to write it up and submit it. We negotiate it and we got the deal together and close. After the transaction, we learned that people in this agent's office told her not even to submit the offer because it was way low, like solo, that we wouldn't do anything with it whatsoever. And I think that's where the ego and education everything comes into play because they were concerned of what we would say and how we would react to them since it was so low. It's not our decision, it's the seller's decision. We have no clue what that seller's motives are to be able to, to move that. And maybe they changed over time. Absolutely. And especially after a year, their motives may have and their goals have changed tremendously. We don't know. But if you are not even going to write it up and submit it, or you're not, you're too scared of the rejection from the very beginning. And with that being said, what would have happened if that buyer went to the next agent and wanted them to write that offer? Like you're losing opportunities by taking the time, which it's really not even taking the time. It's doing your job to be able to submit the offer of the way that your client wants it. So I think, you know, even with the ego side of things, the hey, like just don't shoot the messenger. Let's see what we can do. Working with the Other agent helps and goes so far. And just the hard nose and putting yourself into it like that's not worth it. That's not getting us anywhere. That's not working together. Well, I think even when you're representing the buyer. Right. So like I had a transaction where we wrote and I didn't think it was like a horrible offer. I expected a counter and they rejected it. So, right, like, same thing. I could have told the buyer, like, it's not worth our time. They already rejected it. And that's not what I said. I was like, sure, like, they rejected it. Obviously there's. They're going to be pretty firm, but let's throw another. Let's throw another counter out there. Let's do something. And I think they countered. I think they rejected again. And I was like, okay, well, now we're getting a little ridiculous. But I was like, let's do one final attempt, like your best offer that you're willing to do. And lo and behold, they countered and rightly able to come to an agreement. So. And I understand it's not always the agent. Like, sometimes you do get sellers that are just their way or the highway, if you can prep them to just be like, I don't care if you countered asking. I don't care. Just put it back in the Other, you know, buyers in the buyer's hands, if you will. And I think the Other thing with that is multiple offers. That's probably one huge frustration for me too is I think that, like, people. I don't know if it's like buyers, agents get confused or like, don't think about countering a multiple counter. You know, like, we gotta remember the terms aren't the same. Typically when you're multiple countering people, they can all look different. So I'm always amazed, like, if I have three offers and I send out three multiple counters and three people reject, I mean, obviously that's not great for the seller. But I was like, why didn't one buyer just be like, I don't like those terms, but I like this term. Like, I think that, you know, maybe Other agents just always assume that another offer is going to be accepted in a multiple counter. And I mean, that's not the case. So I, I mean, I had one recently where like, we just tried to clean up some things on the multiple counters both parties rejected, which I was not expecting, but had one of them just come back with something, the seller probably would have taken it, you know. So I think that that's just the Other thing too is, you know, the Other thing with multiple counters when you're working for a buyer, a lot of times I feel like those agents just, again, they'll either, they'll only reset, accept or reject what comes in. They don't do anything else with it. And I think that you could counter less to what you want or if it's a house you really want. Like, sure, they give you a multiple counter and it gives an inkling to what they're looking for. But what if you made it even better? So if you really want this house, why don't we counter an extra $2,000 or take off something? Because now we know we're being countered against someone. And I mean, that's worked really well for me. Like when I've countered multiple counters for the better, we typically end up winning because everyone else just either rejected or accepted the multiple counter instead of trying to get creative. So let's, let's talk about your multiple counter for a second. Yeah. Because you guys do it differently than the way we do it. Explain what happens when you have a multiple offer situation. What do you. What do you. So let's say we have three offers on the property and they're all decent. But maybe, maybe price is wrong. Not wrong, but not what the seller wants on one. Maybe the closing date doesn't work on another one. Maybe compensation needs to be addressed in another. So we have an actual multiple counter counter form, if you will. And what that does is it means you can counter each party separately so they don't have to look the same. So maybe this one addresses price, Maybe this one only addresses closing date. This one addresses inspections or something. Right. But now that means all those buyers know that they're being countered against someone, but it doesn't necessarily mean that they're like and like terms. Right. So, like, for example, I always like the home sale one. Right. I tell people, like, that's a great tool in a multiple counter. Like, maybe they offered more if they have a home sale contingency or the Other party doesn't know that, you know, so they're not countering that, but then goes out to the buyers. They can then choose to accept, reject, or counter that. Again, let's pretend that all three buyers accept the multiple counter that was offered to them. Now the seller gets to choose of the accepted multiples which ones they would like to accept. So again, I think that there's just some misnomers of like accepting or rejecting and not playing anymore or not negotiating anymore. And when you serve that multiple counter, the Other party, your buyers in this scenario, they're acknowledging that they are receiving and that there are multiple counters on the table. Correct. So, and it's not saying that they're only going forward with one. Right. And it's not saying that they're Guaranteed even if they were to accept that. Right. Like, it's a more so served as a notice than it is. That's the way that I read it. And I think it's beautiful, like, to. To do it. Like, it's so freaking smart. Like, I. I want to be able to implement that for us because it's letting. And it removes the. The uncertainty if the Other party truly is telling you the truth, that they have already received multiple offers. Now we're acknowledging, you know, like it's written out, not just a verbal that we have, you know, multiple offer situation. And I think that from a seller's perspective, this really can work in their benefit to be able to drive the true terms that they are after and really help with the bottom line or whatever. I mean, and it's not always about the proceeds. I mean, it could be the Dayton or whatever else. There's so many data is huge for a lot of people. Absolutely. So this really helps being able to get the best scenario outcome for that. That seller for sure. So I think it's freaking awesome. Like, when you were. The first time that you and I talked about this, I was like, I am not tracking what in the hell are you doing over there. Right. Like, like. But this is one thing that I'm like, this is. I want to be able to adapt to our company. So I think it's freaking awesome to be able to do that. Yeah. And I think it goes back to, like, just like, my biggest thing is, like, I try to tell agents, like, just don't let it die in your hands. Like, let it die in someone else's hands. Then you know that you have done the best that you can. And with that being said, like, I. I like to call it like the hot potato. Right. Like, I don't want to hold that potato. I don't want it to be here. Like, I want to throw it to somebody else. Like, and if they drop it, that's on them. Um, but I think that the whole thing here too, the reason why we do this, and I'm not speaking for you, I'm speaking for me, is that I'm showing my client that I'm working in their best interest. And I'm still putting effort into it. I'm just not letting it die. Right. I'm working for them. I'm pushing it forward. And if it doesn't go through, great. We tried. And what is the worst case scenario that can truly happen when you submit an offer or negotiate? It's. No, that's it. That's the worst thing that can actually happen out of it is a no. And I would much rather know that I got the no than ever put it in question of did I do it properly or if I could have done it this way or if I would have said it that like, no, just put it into play. Throw it to the Other party, throw that hot potato to them and let them see if they hold onto it, drop it or throw it back over. Yeah. I mean, and ultimately, right, like you're trying to, like that's what we're supposed to be doing. We're supposed to be negotiating. So, you know, I think my encouragement to people is just step it up a notch. Try to, you know, again, even if you have to counter it asking, just don't let things just, you know. You know, especially imagine if there's a property that has been on the market for, you know, I don't know what's in this in this day and age. Like, three months is a long time, right. But like, don't just be like, oh, I'm looking for something. I'm looking for asking like, is that even reality right now? You know, that's a prime opportunity to have that discussion with your seller. I just had to have the same discussion. Like, you know, especially in our area, like, when you get over 500,000, the buyer pool is that much smaller, right. So. And when you get closer to a million, most people don't get asking price. There's just some. It's a lot easier to give on $50,000 at a million than it is at 200,000. So I also try to explain to those sellers, like, just know that in this market there's normally more given in asking price. And you get some people that are like, nope, I want to asking, well, then we get through two months on the market, you know, no more showings. Like, you just have to have that like reality. If something comes in, we really need to entertain it. Absolutely. And that's where the, the percentage base goes as far as like the, the spread of the 50 grand from those two different price points. But knowing that that list of cell price and truly knowing what that is went for you as the listing agent and understanding if you can do the research backwards on your competitors, how far are they really off? And you can help yourself in that negotiation. But that helps put it in a. When you put it in a percentage manner versus that hard physical flat number, it's easier to be able to explain that spread of the, the list to sell. And that helps you in your Negotiations tremendously. Well, I think you make a good point about the Other agent. That's the Other thing we don't have control over. Right. So maybe they're, and it's not a bad thing, but maybe they're an agent that's one month in and they haven't had proper training. And so you can tell in their counter, like don't let that earn their offer. Don't let that sizzle the deal. Maybe that's a training opportunity to help another agent. Like, hey, we're going to counter. Like we need to clean up all these things. But again, don't just be like, oh that's, look how poorly that was written. I'm not going to entertain it. Right. Like just put that ego aside. Maybe they need some help. Maybe they just don't understand the market. We have people that come here from out of the area that know nothing about the area. So try to educate them as to why we're at the price, what we're doing, et cetera. So just remember that sometimes you know that that agent's maybe lack of understanding or lack of knowledge could be poorly affecting that buyer. And let's try to get through that together instead. And let's be clear from a broker perspective, I want to know those agents. I want to know those agents and I want to help those agents on the Other side. I call those people my BS agents before Steven agents. Because now those are opportunities. That's a great recruitment side of things to be able to say, hey, this is what we train on, this is how we can help you and give them a real live scenario, you know, hands on type of training. Yes, they're not your agent now, but what if they can become your agent? You can recruit them then so they. Learn more from you than their own brokerage. Correct. Be their broker before you're their actual broker and I'm here for it. So all around, I mean there's so many different opportunities that it's trying, it's helping, it's, you know, making sure that you're, you're working for all, I mean not for all parties. Right. But you're putting your, the goal here is to be able to get a buyer and a seller at a closing table. That's the goal. Willing, enable buyer, willing enable seller. And if we have that we can, we should be able to put the deal together despite different terms or anything else. We should be able to work together and make it happen and help each Other. Cool. Great topic. Love it. So appreciate you guys listening to the Leading Lane Podcast. As always, if you have any topics, need anything at all, please reach out. We love the messages, so keep on sending them and listen in next time. If you've enjoyed today's episode, please like subscribe and share with others. Stay connected for more genuine insights and strategies to boost your real estate career on Facebook or check out our website. We'll see you next time.