There is so much to consider when listing your home

Should we hold offers when selling

The market has shifted and selling now looks different. This means that sellers are being asked to pivot their expectation around how their house will sell. Gone are the days of holding offers and offer presentations, for the most part at least. Do you want to make sure you make the right call around how to handle offers for your sale without leaving any money on the table, if so, there are a few things you need to be aware of.

Before we jump into it, you may be wondering, What is an offer presentation? What does holding offers mean?

Very briefly, It means that a seller has signed Sellers directions to designate a date and time when they are willing to sit down and entertain offers. There are a few more rules around this and the paperwork can include any stipulations that the seller wants to add, but I encourage you to go over this with your agent.

Now this video is not going to get into the technical aspect of this, your agent can explain that to you in detail. I’m going to share my perspective on the current market and why holding offers isn’t as applicable in the spring/summer season of 2022 in Ontario, as it was before.

To hold or not to hold?

Let’s get into it.

When deciding on whether to “accept offers any time” or “hold offers” you want to look at three things:

How many showings are we seeing on listings in the area with homes similar to yours?

What are the average days on market, What is the inventory rate?

What is the current list to sale price ratio (meaning how high above or below asking price are we getting on average)

In this market, which we have seen slow down over the course of 2022, these three factors have changed considerably.

Holding offers was used to allow a high volume of showings, during a brief time. In a market as hot as what we have seen in the past in Ontario, a home would sell within hours of being on the market. To allow a higher level of exposure and the best opportunity for the seller, offers would be held so agents would have a chance to show the property and write up an offer if a client wanted.

So to break down, we tend to want to accept offers any time, when we see the market doing this:

Showings decrease, from forty to sometimes upwards to seventy in a few days, to maybe a few a week.

Average days on market increase, and jump from 7 to over 25 plus.

Houses are available for longer, giving us a higher inventory rate,

Less showings, means less offers per property.

Another tell tail sign, we start to see pricing jump around… with houses sitting for longer, and then seeing a price INCREASE, which is no fun for buyers.

And the biggest one of all, Seeing actual offer days coming and going without a successful offer accepted.

If all of these factors are at play

I advise my clients to invite offers any time. That way buyers are more inspired to simply offer a home they like, without fear of competition. Of course competition can still happen, especially if the home was priced fairly and as close to market value as you can get with the data you have, and your agent’s experience. My advice always, but especially in this market, is that homes should be priced dead on market value, no more, no less. But Pricing is another video.

This is of course general advice, and lean on your agent, who will guide you through your specific situation.

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