Is it possible to create a situation guaranteed to create a multiple offer Bidding War?
The Toronto real estate market continues to inflame the talking heads screaming about the "end of times" and collapsing values.
Interest Rates will rise but are flat. Rates have move from 2.5% Variables to Buyers selecting 3.15% five year terms. Has inventory [the number of detached homes in central Toronto] increased? New Buyers arrive every month both from job migration in Canada and those new to Canada. All this adds to the competitive mix.
When pricing a house we take into consideration; proximity to the subject property [your house] How recently the sale occurred, How many improvements and upgrades had been made to that home and ultimately demand for that property in Bloor west, Roncesvalles Village or will you live west and drive from the Kingsway or Markland Wood. See Comparable Market Evaluation. Access to transit and community have moved up in importance compared to commuting times, gasoline prices and traffic.
So, If we price this property within 2% of where we expect the offers to conclude, and we select a price that is a rounded number [online shoppers are looking for $600 to $650; not $628 to $647,888.] Do this and you have missed an entire buyer category that may have looked at you but you did not round up or down to catch both the upper and lower limits.
Some are creating hype in the neighbourhood with POCKET LISTINGS, signs that tease with Coming Soon. This is all to attraction more drive by traffic before the event occurs. Now lets hold offers for 3 or four days prior to examining all the Bidders. What if Others are making Bully Offers; take me now. You may not get it later.
Are the Buyers falling for this? Or Do you as an informed consumer say; "That house is priced $100,000 below the last sale. I know there will be a bidding war and I will not go that far past their expectation" . I have also had and advocate the "There will be another house equally suitable."
Some SELLERS have an expectation that sealed bids will somehow appear in their mailbox at 10:00 PM at night. Drivers (REALTORS) will stealthily approach and drop their 11 page document with a Confirmation of Representation and You have seen my Offer and rejected it page. SERIOUSLY. Some doors no longer have a mail slot. This is simply not happening. Agents call and Register their offer with the Listing Brokerage. Offers are presented (usually in person) in the order of registration. Enough copies are on hand for acceptance and signatures.
The agent has a responsibility to present all offers to you. You have the option of Signing back, rejecting or accepting the offer. Sometimes you have good offers on the table and your agent sends them all away for a final round [to top up your best bid] and no one returns. Sometimes the appointed offer time arrives and passes, unanswered.
Can you create a Bidding War? Although there may be multiple potential buyers for that property, each house is unique and may just not create that multiple offer scenario. You are better off pricing the home properly for sale, than undervaluing your largest asset hoping for enthusiastic Buyers. Most of all remember, Your home must pass inspection and appraisal post the sale and prior to closing.