The idea is that the Seller and Realtor bring a property to the market through the TorontoMLS system with a note in the Broker’s remarks that although showing can commence at the time of listing, offers, if any, will be reviewed at a later date.
What is the reason for this? Are the Realtor and Seller manipulating the market to force multiple offers in an Auction-like scenario? Could be…but that can also backfire…What happens if, at the end of the time period, no offers appear or an offer appears that the Seller is unwilling to accept.
In the last case scenario, if a Realtor advertises a property on the market, knowing that the Seller has seen a full price, unconditional offer and not accepted it, then there is a case for “false advertising” that can be forwarded to the Real Estate Council of Ontario . The Seller and Realtor then should increase the listing price to a price that they know the Seller will accept. This can affect the marketing in a negative way.
I always counsel my Sellers that the list price must be a price that they would be okay to accept. It may not be their goal…mine is a 27 inch waist but that ship has already sunk.
I am a big supporter of holding off offers but let me tell you why:
- The market has been very fluid over the past few years with comparables selling all over the map. Pricing is not an exact science and if you were to ask five Realtors for their thoughts they would probably all be different….as would the Seller’s.
- Pricing has a lot to do with how many Buyers there are in the marketplace for that kind of property at that time. One week there might be five Buyer for a type of property and the next week, there might be one. Timing is everything and sometimes unexpected prices are reached because of the scarcity of product that week.
- I want to make sure that my Sellers and I are not left with the thought that there might be more money on the table; that we could of had by more by waiting for another offer.
By bringing the property to the market, advertising on all the channels that are available including Agent’s Open Houses as well as Public Open Houses (Answering The Commission Question ) and then looking at offers a few days later, the Agent has done his due diligence to make sure that the property sells for the best price possible and the open market will set the price.