Holding Off Offers till a future date - good or bad ?
Holding Off Offers.The idea is that the Seller and Realtor bring a property to the market through the TorontoMLS system with a note in the Broker’s remarks that although showing can commence at the time of listing, offers, if any, will be reviewed at a later date.
Why do it?
Perhaps it is to create a multiple offer situation or it can backfire…What happens if, at the end of the time period, no offers appear or an offer appears that the Seller is unwilling to accept.In the last case scenario, if a Realtor advertises a property on the market, knowing that the Seller has seen a full price, unconditional offer and not accepted it, then there is a case for “false advertising” that can be forwarded to the Real Estate Council of Ontario .( a little difficult to prove though ) The Seller and Realtor then should increase the listing price to a price that they know the Seller will accept. I always advise my Sellers that the list price should be a price that they would be okay to accept. The other downside is some buyers will avoid a multiple offer situation " the auction " and go for a higher priced listing with no stipulations re the offer deadlines .
In support of the " Holding Offers " approach:
1.The market has been very fluid over the past few years with comparable selling all over the map. Pricing is not an exact science and if you were to ask five Realtors for their thoughts they would probably all be different….as would the Seller’s.
2.Pricing has a lot to do with how many Buyers there are in the marketplace for that kind of property at that time. One week there might be five Buyer for a type of property and the next week, there might be one. Timing is everything and sometimes unexpected prices are reached because of the scarcity of product that week.
3.I want to make sure that my Sellers and I are not left with the thought that there might be more money on the table; that we could of had by more by waiting for another offer.By bringing the property to the market, advertising on all the channels that are available including Agent’s Open Houses as well as Public Open Houses and then looking at offers a few days later, the Agent has done his due diligence to make sure that the property sells for the best price possible and the open market will set the price.
source: Richard Silver
Why do it?
Perhaps it is to create a multiple offer situation or it can backfire…What happens if, at the end of the time period, no offers appear or an offer appears that the Seller is unwilling to accept.In the last case scenario, if a Realtor advertises a property on the market, knowing that the Seller has seen a full price, unconditional offer and not accepted it, then there is a case for “false advertising” that can be forwarded to the Real Estate Council of Ontario .( a little difficult to prove though ) The Seller and Realtor then should increase the listing price to a price that they know the Seller will accept. I always advise my Sellers that the list price should be a price that they would be okay to accept. The other downside is some buyers will avoid a multiple offer situation " the auction " and go for a higher priced listing with no stipulations re the offer deadlines .
In support of the " Holding Offers " approach:
1.The market has been very fluid over the past few years with comparable selling all over the map. Pricing is not an exact science and if you were to ask five Realtors for their thoughts they would probably all be different….as would the Seller’s.
2.Pricing has a lot to do with how many Buyers there are in the marketplace for that kind of property at that time. One week there might be five Buyer for a type of property and the next week, there might be one. Timing is everything and sometimes unexpected prices are reached because of the scarcity of product that week.
3.I want to make sure that my Sellers and I are not left with the thought that there might be more money on the table; that we could of had by more by waiting for another offer.By bringing the property to the market, advertising on all the channels that are available including Agent’s Open Houses as well as Public Open Houses and then looking at offers a few days later, the Agent has done his due diligence to make sure that the property sells for the best price possible and the open market will set the price.
source: Richard Silver
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