Well its happening again in the city more than in the "burbs" BUT today I was to show a listing to a client that had been on the market 3 days-maybe 4. On the listing it clearly states "Offers to be Presented to the seller on November 1st"
My clients quite liked the house they saw on the weekend, had a copy of the Sellers lists of improvements and a copy of the Home inspection pre sale report which was one page. It identified a few things that might need doing, like a new water main into the 80 plus year old home to increase water pressure
After making an appointment to have one more look at the property, I did my due diligence and checked the properties that had sold on the street. Very few semi detached, 14 foot wide properties had sold under 700,000 some in the mid 600,000 and one fixer upper ( that's the nice word for falling downer) sold under 500,000. We could see detached homes over the 1 Million mark and one 200,000 over asking price. This home was listed at 589,900 so we knew it was UNDER established market values and would like the others on the street sell significantly over the asking price... why not everything else had.
Then when I called the agent to ask about the offer presentations for the next day I find that the offers had been moved up till today! at 5:00 pm HALLOWEEN. I might add as someone had "pre-empted" the offer process set out in the listings and put in an over asking offer but good only till today... "BULLY Offers" are the nick name.
So this diligent agent called all 45 agents whom had shown the property previously and gave them the good news. She re -ran "published" the listing on the open MLS service and now told the buyer agents to come to the table today, at five, with a certified cheque or money order in hand. She now had two registered offers and three more pending
My clients said... "Really? thanks but no thanks."Is this the way to sell real estate? YES it is free enterprise and I personally have done a similar thing. I have advised a client to list lower and see where the buying public will push the offer? I did not, however move the day up, which obviously adds fuel to the fire.
NOT so much fun on this side... I am just sayin..
Does this happen everywhere NO.. the downtown core and parts of Durham seem to be specializing in this. Can it hurt the seller.. Jury is still out on that. If reviewing the selling prices and an average sale point of $640,000 was reached they could have gone more traditionally. Had they listed this property at $649,900 and waited several days and received one offer of $640,000 would they have accepted it and felt they got top dollar? Or does the buyer actually think they got over market value because listed very low and got over asking price.
Don't know.. all I do know is with the low supply of affordable housing and the demand high (with very low interest rates predicted to remain) ...this market shows NO signs of slowing down.
SO if you are not trying to buy in this buying frenzy or selling where there are multiple offers whats the best strategy?
List where the 30,000 agents who work the market everyday see your property when its first listed as "good value' Sell it to the agents and they can Sell it to the buyers with confidence, statistical back up and peace of mind.
