Multiple offers can be scary for Buyers and frustrating for agents. However, I find that a lot of this stems from agents not being truly honest with their clients.
Case in point, the pre approval letter. Not all letters are created equal. A Buyer client of mine recently got pre approved for a mortgage and the letter the lender wrote stated that the approval was subject to verification of income and assets. This is NOT an approval letter. It’s a generic letter that the lender issues, which shows they have not done any due diligence and it does not instill confidence in the Seller or Listing Agent.
The question is, what do you do as a Buyer’s agent in this scenario? Do you not say anything because you don’t want to offend your client or do you get honest?
I opted to get honest with my client and let her know that the letter would hamper her ability to be successful in a multiple offer situation. She was willing to switch to a stronger lender and was successful in her multiple offer bid, largely due to the new lender.
The next week I had the same scenario as a listing agent. The Buyer submitted a similar letter and when I called the lender for verification of approval they never called me back. We went with another Buyer. My heart went out to the first Buyer. I have no doubt they are great and truly want to purchase a home, but their agent not being honest with them is hurting their ability to be successful.
There are often times in our business where it can be uncomfortable or awkward to tell our clients the truth. That is what they pay us for. If you help them understand the impact a decision can have on the outcome they will understand and respect you for it. Their job is to make the final decision, but it is up to us to give them what they need to be fully informed.