Scenario A:
Back in February I had a gorgeous home listed for sale. The
sellers knew their home was exceptional and decided to hedge the market and
place their home at a price point never achieved in the area. Seeing that the
price was quite high, we made a decision to leave offers open – anytime. The house was listed Wednesday and was
sold by Friday. There was no real way to know at which dollar value the home
would have taken longer to sell.
On Saturday I received a call from an agent perturbed that I
had not held back offers because her clients were not able to see the property
and would have certainly offered if they had. I explained that the price was 5
percent higher than the last sale and I did not think it would sell in 2 days.
There were 8 showings and we only received one written offer and one verbal, so
we were not underpriced. Perhaps the right buyer and the right place at the
right time?
Scenario B:
In April I listed a property in a neighbourhood, which
seemed to be showing a surge. I had done an analysis for them this past autumn
(2013) and since that time prices were definitely trending upwards. The house
was prepared for sale to show its best. (staging, painted, repaired, cleaned up
and professional photographed.) It certainly looked good (if I don’t say so
myself). Seeing that prices were trending upwards, we decided to hold back
offers for 5 days.
I got a call from two agents who were not too impressed with
our strategy. One agent said he would not show the property, as his people
didn’t appreciate the attempt to spurn multiple offers. The property did indeed
receive competing offers, but only 2 and at asking price not above.
Silliness:
I have heard agents and buyers say that if a Seller and
their Agent holds back offers and the property does not sell that it will be
stigmatized. (The sellers pegged as greedy). In my opinion having a punitive
attitude is unprofessional for agents and illogical for buyers; you can’t have
your cake and eat it too.
This seems to really be a damned if you do, damned if you
don’t scenario.
I prepare my buyer clients up front to understand that there
are two perspectives here: If the
sellers do not hold back offers it my be sold before they see it, and if they
do hold back offers there may be a multiple offer. This is just a reality of the market.
Myself – I welcome holding back offers. I will take that
over never getting a chance to show the property.
Opinions appreciated!
David
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