I recently had the good fortune of being part of an exciting “offer presentation” for the sweetest couple who had decided to part with their family home after 30 years. The interest in this home was high and so was the energy around this listing. I wanted to share this experience and the strategy used for selling this home bringing more than $100K over the asking price.
An offer presentation is a date and time that has been set when all offers will be presented at one time to the sellers by the Realtor ®. In this strategy, all bids are compiled and sellers have the opportunity to view and compare the offers all at once, rather than receiving them one by one over a period of time.
The first part of an offer presentation strategy is to price the home competitively, or even slightly below market value. Then the plan is to hold back all offers to a certain date for an offer presentation to the seller. This strategy is intended to encourage competition for the sale of the property, to ultimately bring a higher selling price for the home owners. We see this strategy often when demand for homes is high and available inventory of homes for sale is low (aka sellers market). This strategy has been popular in recent months, however, doesn’t guarantee competition and a higher price, which is why discussion with your expert Realtor® is always recommended.
For this listing, a competitive price was set, and the listing became live on Thursday. Immediately, Realtors ® were calling and booking times to show the property. In the few days that followed, over 80 agents reached out, with a steady stream of potential buyers touring the property. Potential buyers had until Tuesday to make their decision to submit an offer on the home.
In these four short days, after countless inquiries and showings, the offer presentation day was here. In the final hours leading up to the presentation was, I must say, a bit hectic. Realtors® were calling, emailing, calling again, registering offers, expressing their intent, calling and then emailing again.
And then Google went down. Yes, Google went down. Some offers were not getting through. We did a quick work around and all interested parties were able to have their offers submitted right to the wire. Whew!
Now it was decision time. There were 14 offers in total – 4 offers were “conditional” meaning they had included clauses for work to be done before the deal would be officially firm. Then there were 10 offers that were “firm”, meaning if the seller chose that offer and both parties signed the offer, it meant the deal was final.
Some offers were low, some were high, some included letters and photos of the prospective buyers and their story. One buyer even dropped off a Christmas card to the seller in hopes to move to the top of the list. The sellers were pleasantly surprised with the overwhelming interest in their home, with offers at and above their asking price, and the sellers were very grateful to have the expertise of their Realtor® to help them navigate this challenging and emotional time.
After consideration of all of the offers that had come forward, at the end of the day the top bidder secured the purchase. The successful buyer offered more than $100,000 over the asking price, with no conditions. The sellers felt like they won the lottery and can retire in a cozy, easy to maintain apartment close to their daughter. And the buyers were thrilled they actually secured a beautiful, very well maintained home in this extremely competitive marketplace.
Pricing your home below market value to encourage a bidding war is definitely a strategy many Realtors ® and home sellers are using in this market. With changing market conditions, competitive marketplace, and unexpected issues, nothing beats an expert Realtor ® on your side when selling your most valuable asset. So, having a plan, being prepared and flexible to navigate the unexpected, can help with the success of this significant time in your life.
Thanks to my colleague Helene, I was able to see one of our star agents in action to seal the deal. A lovely retired couple were on their way to a happy retirement, and a new buyer was able to buy a beautiful home in an extremely competitive market. And a thanks to you for allowing me to share my story and a day in the life of a Realtor ®.
Should this blog spark any questions or curiosity regarding the Hamilton and Burlington Real Estate market please reach out and I would be happy to help.
RE/MAX Escarpment Realty Inc., Brokerage
1320 Cornwall Road
Oakville, ON, Canada L6J 0H7
RE/MAX Escarpment Realty Inc., Brokerage
1595 Upper James Street, Suite 101
Hamilton, ON, Canada L9B 0H7
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