Did There Really Need To Be 15 Offers? Photo
I was involved in a multiple-offer scenario last week, on a condo townhouse in the east end.
The property had a helluva view, and there was no doubt that it was going to attract plenty of interest and receive a bunch of offers.
“A bunch” ended up being an understatement.
There were 15 offers. FIFTEEN!
The property sold for 125% of the list price (it was listed at $409,000 and sold for $510,000).
With so many offers and such a high sale-to-list price ratio, you have to ask yourself, “Did they really need to under-list the property by that much?”
Couldn’t they have listed at, say, $449,000 (which would still be “underpricing” the property, albeit less drastically)?
While there was obviously one very happy “winner” on offer night, there were 14 other buyers that went home empty handed.
No doubt, some of those buyers went in offering less than $449,000. And despite submitting what they (and/or their realtor) thought was a reasonable offer, they never actually had a chance.
Couldn’t the sellers have been a bit less extreme in their pricing, and perhaps spared a handful of those hopeful buyers on offer night? Wouldn’t they still have ended up with a $510,000 sale price?
Truth be told, there’s no way to know for sure if they would’ve ended up at the same sale price (although I think they would have). Sure, it’s possible that the top offer wouldn’t have come in as high had there only been 7 or 8 offers (unlikely I think, but possible).
On a funny side note, the listing agent had made a point of saying that he felt that there was no need to put anyone through the hassle of going to get a certified cheque ahead of offer night, as it would only add undo stress and waste too many people’s time.
Okay…
But he felt it was reasonable to under-list the property by $75,000 - $100,000? He didn’t think that would result in wasting a bunch of people’s time? Ha!
Granted, the listing agent did a great job for his clients. He orchestrated a process that got them a record-high price for their property.
It’s a frustrating process though, when one happy seller and one happy buyer have to leave 14 other disappointed parties in their wake.
If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.