In a hot real estate market, intuition suggests it would be easy to sell a home. This is true; it can be easy to sell certain properties BUT what about getting top dollar?
Would you think differently if offers on a $700,000 property could vary by more than $100,000? Today, March 15, 2021, this is the real estate market in Central Okanagan.
Sellers can see offers that range from $10,000 under asking price to more than $100,000 over (and more). Often, with the highest offer, condition-free, arriving at the 11th hour. In this type of market, what strategy will get you the most offers in a set period of time?
In a hot market, cutting corners on marketing becomes more costly to your selling price than in a balanced market. What does your agent consider thorough?
For example, in a balanced market, 3D walk-thru (matterport) and professional photos attract buyers and help increase interest in a property. Are these marketing methods important if there are already plenty of interested buyers?
Consider today that many buyers are not able to physically view the property and will write offers based solely on the clarity and quality of the photos, descriptions, statistics, and presentation online.
Other buyers, due to increased numbers of showings and time constraints, will view the property but retain little information because they will be rushed not able to absorb all the features of the property.
A “good” listing can fill in the gaps and will help sellers do better when negotiating starts. What motivates a buyer to pay more? Crystal clear photos of the new fence and landscaping, appliances, updates, and features of the home or grainy, unfocused, and non-existent photos can produce the exact opposite?
On the flip side, savvy buyers are often happy to see a new listing with a single or low-quality photo as the marketing effort. Their curiosity could be rewarded with a diamond in the rough, and with less competition come offer time.
Sellers should consider how much time on the MLS is needed for full exposure. A recent poll of top-producing agents suggested that no less than 72 hours would be a fair amount of time. A listing uploaded on Friday would benefit by screening offers no earlier than Monday. After 13 years in the business, I think Tuesday is a better bet. Why?
- In certain price ranges, up to 50% of the buyers for a home do not live in the area and need time to travel.
- “The first Offer, Best Offer” is not a valid concept in a seller’s market.
- Increased time will allow buyers to investigate the property more thoroughly and write offers with fewer conditions or with none at all.
- More time allows busy couples to coordinate and view properties together and sometimes without being rushed. Buyers who can relax during showings are often more likely to connect with the property.
You might be hearing agents talk about bully offers. To some, this is when the seller has agreed to postpone looking at offers for a number of days but prior to this date, accepts an offer. Buyers who had been waiting to present their offer can be left out of the process and are often shocked that the seller would jump so soon. These situations can leave buyers and sellers asking a lot of questions.
The term is not correct. It should read, “an offer the seller could not refuse”. These situations are complex and as a seller, it’s important to understand the risks of accepting such an offer. It’s possible that accepting an offer too early could cost thousands of dollars in a lower sale price. Alternatively, it could be that the seller weighed all the facts and chose the offer because it met their needs.
In any situation, CENTURY 21 Assurance Realty Ltd. agents are specially trained to help sellers understand the market and guide you through a choice that’s right for you. When buying, our agents have the tools to help you secure your new home, investment property or recreational getaway.
Associate Broker | REALTOR®
Century 21 Assurance Realty Ltd
Agent Development & Recruiting, Commercial
Real Estate Coach (NORE®)