You’ve done your research, you’ve found the perfect property, and you’re going to make an offer.

You have your deposit cheque ready, you’ve signed the offer, and you’re all set.

There’s just one thing you didn’t count on: Your girlfriend’s brother is ALSO offering on the property…

My good friend, Kurt, came to me in January and said that it was his time; he was ready to purchase a residential property.

“Enough of the rental rut!” exclaimed Kurt.

We started the search, with due diligence, and involved Kurt’s parents in the process since they would undoubtedly be helping him financially.

Kurt wanted something extremely unique, both in terms of the neighborhood and the unit itself.

We looked a some crappy places—a LOT of crappy places, and then finally a property came out on Baldwin Avenue in the heart of Kensington Market.

It was perfect.

Kurt is kind of a different breed altogether, and rather than live in The Hudson with all the other young professionals and Prada-handbag-carriers, Kurt wanted to live in a building that is surrounded by street vendors selling t-shirts, six-for-ten-dollars.

Kensington Market Lofts was the spot.

The unit, priced at $279,900, was severely under-priced from the get-go.  I told Kurt that had I priced this unit, I would have brought it out at $299,900 and held back on offers hoping to get a slight premium.  But the seller and his agent decided to under-price the unit in hopes of creating a HUGE premium—a proverbial bidding war.

Wednesday is offer day, and Kurt and I are ready.  We have a strategy in case of one, two, three or twelve offers, and we’ve run enough numbers to make John Nash proud.

But Tuesday evening, Kurt called me at home around the dinner hour.  I almost dropped my spoonful of Zoodles on my laminate floor when he told me: “Jenn’s brother is going to put in an offer on Kensington.”

“Zoodles aaaare anim-al nooooodles!”

Sorry…

Kurt’s girlfriend, whom we all expect him to marry, has a brother named James who is also currently in the market for a condo.  Well, first he was in the market for a house at $250,000, but when he realized that didn’t exist, he set his sights on a condo.

James and his girlfriend have submitted many offers in the past two weeks, and they have lost on all of them.  They keep trying to buy a property, and keep failing!  They haven’t figured out yet that in multiple offer situations, you have to be aggressive buyers.

Our current real estate market is not rocket science.  If a property is priced at $259,900, and there are three offers, it is absolutely, positively, NOT going to sell for $259,900.

BUT….that doesn’t stop the odd person from trying!

As an agent, you shouldn’t advise, or even allow your clients to do this.  If you’re in multiple offers, and you aren’t willing to put forth a realistic offer, DON’T BOTHER!  All you’re doing is helping to increase the eventual selling price!  Three offers instead of two offers means everybody will increase their offers accordingly!

In the case of James and his girlfriend, they keep offering the asking price or slightly above when there are multiple offers!  It’s not going to happen.

In a perfect world (one where Jessica Alba not only lifts the restraining order against me, but never seeks one in the first place!), five offers on a property priced at $279,900 would ALL be below the asking price, and your offer of $279,900 would prevail.

But we are in an extremely competitive market!

Where does this leave Kurt?

Kurt’s girlfriend, Jenn, is in a very tight spot.  Her parents are pleading with James not to offer on the property in that sort of “Kurt saw it first” type of way, but also because they are trying to prevent a rift in the family.

If either Kurt or his girlfriend’s brother, James, buy this property, there are sure to be hard feelings.

But Kurt is realistic, and is going to aggressively go after this one-of-a-kind, severely under-priced condo.  I’m acting as his agent, and not to toot my own horn, but I know what it will take to get this property.

James doesn’t know, doesn’t want to know, and doesn’t care.  If he loses out on Kensington, he’ll offer on something else on Friday night.  He is a serial-offer-submitter, and has yet to pin-point an exact neighborhood or building that interests him.

How many times will James lose out in multiple offers before he realizes that perhaps his strategy, or lack thereof, is just not working?

Kurt’s problem with James’ actions have nothing to do with the fact that Kurt wants this property in Kensington; but rather that James is putting in offers all over the city, and if he loses out on Kensington, he’ll just keep on trucking!  He has offered on Mutual Street, Carlaw Street, west-end, east-end, etc.  He doesn’t seem to care what he buys, he just wants something!  Kurt, on the other hand, is in love with the unit in Kensington, and James’ actions may prevent Kurt from getting it.

If James submits what will equate to a “dummy offer” on Kensington on Wednesday, it will either force Kurt to pay more for the property, or push it completely out of his price range.

Ironically, my own sister purchased a condo on Monday evening, also in multiple offers.

Family seems to be the theme this week.

But if tensions run high, feelings are hurt, and blood spills onto the floor (metaphorically….I hope), will Kurt and James ever actually become brothers-in-law?

It’s a tough scenario for everybody involved.

And whether Kurt gets the property or not, it’s going to make for an extremely awkward Sunday-dinner…