- Mike Tait
Following the Rules During Bidding Wars is Critical
I’ve said it before and I’ll say it again, ANYONE can sell a house in a sellers-market. When there are more buyers than there are available homes to purchase, supply and demand forces kick in and it’s only a matter of time before your home gets sold. Don’t get me wrong, you still have to get the house ready for sale, complete all the legal documentation correctly, get the right photographer in to capture all the right angles, have your marketing strategy in place – in other words, you need to have all your ducks in a row before you go live and show your place off to the world. This takes a certain skillset all on its own and many home owners would rather leave all this stuff up to an agent.
This is where EXPERIENCE MATTERS comes in. Most real estate agents should be able to guide you through the process above and get your property sold, often quickly in a heated, sellers-market. But you don’t just want to sell – you want to maximize this opportunity by selling for the most money someone is willing to pay for your home, WHILE FOLLOWING THE PROPER BIDDING WAR RULES (aka multiple offers).
We just had a listing in Brampton and we received an offer on the first day we went live with the listing. We ended up working the offer up to $65,000 more than what the exact same model sold for only two months prior, in the same neighbourhood. This could be considered a success by many people and the seller now had a decision to make: do I sell now for a number he didn’t think was even possible or take a chance and hold out for potentially a better offer. With proper guidance to our client and while abiding by all the rules, our client ended up selling for another $51,000, in multiple offers on the second day – selling for $116,000 more than that same model 2 months prior.
Understanding the market is critical in this industry BUT IT’S EQUALLY AS IMPORTANT to follow the proper bidding war/multiple offer rules laid out in the Real Estate and Business Brokers Act (REBBA). The last thing a seller wants is for the closing of their property to be delayed or jeopardized because of a RECO complaint (Real Estate Council of Ontario) over the way offers were handled or mismanaged. Best practices need to be followed at all times!
We suggest before choosing a real estate agent to manage the sale of your home, sit down with a few agents and ask them industry and personal related questions. At the end of the day, you are going to want to hire a professional you feel both confident and comfortable with.