When the market is hot, buyers have no choice but to compete for a property. While there are plenty of tips out there for home hunters who find themselves in a multiple-offer scenario, there’s less available for those on the selling side. Of course, there’s no doubt that receiving many bids puts you in a great position as a seller. That said, there are a few things you should be aware of to ensure that the process is as smooth and successful as possible.
If you’re a seller preparing for a multiple-offer scenario, here’s what you should know…
Maximizing the number of offers you receive
Multiple offers are very typical in Toronto. When the market is especially hot, all-out bidding wars are the norm! As a seller, there are strategies you can use to make the most of these conditions. One of the most common is setting an offer date. The process consists of choosing a day and time when you’ll begin reviewing offers—and ensuring that buyers know you won’t be accepting any before then.
This step will allow you to compare all of your bids at once, which will take some of the pressure off. It can also generate a sense of excitement around your property—and (potentially) result in more offers than you would otherwise receive.
It’s important to note that even if you set a date, a buyer can ignore your request and submit their bid anyway. This is what’s known as a bully offer, and whether you choose to look at it is your decision. To prevent temptation, you can instruct your agent to withhold any bids from you until the date you’ve set.
Negotiation strategies
Speaking of your real estate representative, one of the best things you can do is choose someone who knows the local market. They should also have the skills to help you understand the negotiation strategies available to you.
Once the offers start rolling in, you have options. The first is simply accepting one of the bids you receive right off the bat. If you don’t go this route, you’ll enter into negotiations.
The first negotiation strategy is countering one offer and rejecting the rest. If there’s a buyer you want to bargain with exclusively, this is your ideal option. Alternatively, if one bid stands out but others are still appealing, you can negotiate with a single home hunter and set the other offers aside for the time being. It’s wise to only bargain with one buyer at a time.
Lastly, you can hedge your bets by inviting all bidders to make their best offers. From there, you can choose the one that’s most attractive—just be aware there’s a risk that the request may turn off some buyers.
The bottom line
If you expect to receive multiple offers for your home, you’re in a good position. Fortunately, by knowing what to expect and working with an agent who understands the process, you can make the most of these favourable conditions!
Ready to take your next step? Whether you’re buying or selling a home, we’re here to help in any market! Get in touch to learn more today.
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