Let's talk about multiple offers. Whether you are selling a house in Toronto, Oakville, Milton or Mississauga, there is a lure in the glamour of our current situation of low inventory and many buyers. Some sellers dream of putting their properties up on the market and shortly thereafter having the offers pour in giving them thousands over asking.
We need to look at reality. The reality is there are situations whereby multiple offers are a possibility. However, holding back offers can be a dangerous proposition. What if no one puts an offer in on the house? Then what? You've underpriced your home in an effort to generate activity for a specific date and no one comes forward with one offer, let alone multiples.
There is one specific example we can think of recently where an agent underpriced a property to generate interest. The date for the big offer presentation came and went. No one was interested in competing. Suddenly, this absolutely stunning home was sitting on the market, underpriced, and no one wanted it.
The property ended up selling for about $35,000 less than it should have had it been priced properly and marketed actively. A sad day for the sellers but there are some very lucky, happy buyers out there right now! This case demonstrates a critical error by the agent, and an unfortunate choice in representation by the seller.
Multiple offers are great for sellers, but they are not a given, even if you underprice your home and set a date for offers to come in. It is important to remember that underpricing a property is not a marketing strategy. It is critical to hire a professional who will analyse the market as well as your home specifically.
As for multiple offers...they will come and go. There is a saying in Hungarian that, translated roughly, says that you can only take the jug to the well so many times before it cracks. Perhaps the jug has cracked for this season.