Attention, attention, holding all offers!!!When living in a competitive market like the GTA and surrounding areas it's a common thing to hear. Dreaded for Buyers and their Agents, Realtors and
Calling all Buyers! Hold all offers!
Dated: January 12 2021
Attention, attention, holding all offers!!!
When living in a competitive market like the GTA and surrounding areas it's a common thing to hear. Dreaded for Buyers and their Agents, Realtors and their Buyers hate having to deal with it but would never let one of their Sellers go without using it!
It's no surprise to most that the GTA and surrounding area has been a competitive market especially the past few years. People often hear of home selling for "over asking" but sometimes we take for granted that no everyone understands what it means when a listing is "Holding Offers" or having a "Bidding War".
With different pricing strategies when selling a home, we come up with a price based on what we believe it will sell for based on what the market is yielding at that point or what we call "Fair Market Value". Say for example we determine the home is worth $650,000 base on past sales in the area but what if you could get $675,000???
Lets list for $599,000..... holding all offers.
"But what happens I'm listing for less!"
What happens now is you have created a frenzy of potential Buyers, people who were already interested in the area and people who may not have otherwise gone to preview the home because they capped themselves at a certain price range and now it came up because of the reduced price. Even though they did not anticipate to spend that kind of money on the home, now that they have seen it, THEY WANT IT!
Fast forward to the offer day and instead of it being like a normal transaction where you are entertaining only one offer and trying your best to negotiate the best price with the one potential Buyer, now you have 5, 8, 10 offers to review, all people who are interested and coming in with competitive offers knowing there are other potential Buyers, possibly Buyers who have lost out on other properties bidding on the home very competitively.
Now listen, I'm not saying that this is the right tactic for every home, in every area, in every market but it is more times than not, very successful in getting the highest value for your biggest investment.
Homes in the GTA sell like this everyday.
Like I said, as a Buyer, you hate it. As a Seller, you wouldn't go without it!
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