Cooperation: It’s a realtor’s simplest and easiest secret weapon

Everyone knows that real estate is a fiercely competitive industry. Realtors compete on behalf of their buyers to secure desired homes, vie for seller listings and build strong buyer relationships. Buyers compete against each other in the market, and sellers compete with other available inventory in their area. But amidst all this competition, there’s another, more subtle yet crucial aspect of real estate that often goes unnoticed – cooperation among all parties involved.

Having sold real estate in Silicon Valley for more than two decades, I’ve seen some sales that involved little or no competition, but I’ve never seen one that didn’t require significant cooperation. A home simply won’t get sold without it. 

One of the craziest yet most enjoyable aspects of being a realtor is that the agent you compete against in one transaction can become one of your biggest allies in the next – sometimes just weeks later, or even within the same week. For instance, a realtor who loses out on working with a potential seller might be the one bringing in the winning buyer shortly after. 

Cooperation in negotiations 

Take the multiple bidding process, which is common in this competitive market. Recently, I sold a Los Altos home that received multiple offers. Realtors cooperated with me by sharing much more about their buyers than just the offer price. Through these conversations, I could gauge the buyer’s commitment, financial strength, and how invested they were in Los Altos and this particular home versus another property or neighborhood. This information is crucial because the more I know, the better I can present the strengths of each offer to my seller. 

Sometimes, the highest offer price isn’t the best choice (though it’s always the seller’s decision); if financing falls through or the buyer has a history of walking away, that’s critical information for my seller. Contingencies are another key consideration; they are legitimate ways for a buyer to potentially back out of the contract, so it’s essential not to be so dazzled by the price that you overlook other terms of the offer. 

In the highly competitive markets of Los Altos and surrounding communities, buyers often submit offers with no contingencies at all, and these “clean terms” can become a deciding factor between two offers that are close in price. 

Regarding the Los Altos home I mentioned, the seller obtained an appraisal of $3.6 million before deciding to enhance the house. They aimed to fetch around $4 million, aligning with median selling prices in Los Altos and netting a profit over the cost of upgrades and renovations. 

We listed the home on a Thursday, and by Tuesday, we had 14 offers, most of which were over asking. This situation played to one of my strengths: negotiating bids for higher returns. 

The power of realtor relationships 

The bidding process is blind, so buyers and their realtors don’t know how far above asking others have gone, if at all, nor the price of the highest offer submitted. Reviewing offers also allowed me to speak with other realtors, many of whom I had worked with before. There’s an exciting blend of understanding how a given realtor typically operates, their track record, and recognizing that each buyer is unique and may drive the process in a new direction. 

In doing my diligence for the seller, I spoke with one buyer’s lender; the offer had some subtleties that made me curious to learn more. I found out that this couple had been writing offers on homes in various communities for two years; their offer wasn’t as solid as the others, and combined with this signal that they might not be that serious, this buyer came out near the bottom of the list. Ultimately, it’s my seller’s decision, but I bring as much insight to bear on each offer as possible. 

The big picture

Sellers often hope for an all-cash offer because it usually ensures the fastest close and feels like a sure deal compared to relying on a buyer’s loan. But I counsel sellers to take a more rounded approach. Again, cooperation from the buyer’s realtor can help complete that picture by providing insights into the buyer’s financing and commitment. In the case of this Los Altos home, the highest price ultimately won, even though the buyer needed to obtain a traditional loan. Their offer had no contingencies, and they were fully underwritten and preapproved by a local lender I’ve worked with before, which helped secure their position. 

I’m always open to discussing the general level of competition, multiple offer scenarios, and the seller’s decision with other realtors (to a point, of course—we all must protect confidentiality). This helps realtors understand the market, my approach, and any valuable feedback for their buyers. At the end of the day, we are talking about people and their homes; the stakes are high for both sellers and buyers, and emotions can run the same. That’s why an experienced realtor knows the importance of cooperation, helping all to improve, work smarter, and serve their clients more effectively. 

Alex Wang is a Los Altos resident, Realtor, and founder of Rainmaker Real Estate. For more information text/call (650) 800-8840 or visit AlexWang.com.