b-LOG: DELAYING OFFERS: The 8 Sided Coin
Since mid January of 2016, our local market, specifically St. Catharines, has seen the delay of offers presentation become almost normal. The big (unanswered) questions are what does it mean and who does it really benefit?
Well, as often is the case in real estate, it depends what side of the table you sit on. Some see it as organized chaos. Others its a roller coaster that they either can’t get off or are having trouble getting on.
From the Seller’s perspective:
It can allow more buyers the chance to see the home and ponder making an offer which in the end increases the number of potential buyers and offers. The result of that can quite often be a higher sale price or more favourable terms.
From the Buyer’s perspective:
It can often be interpreted as the seller manipulating the market. A buyer may look at it as the seller playing the real estate game or their Realtor encouraging them to do so.
From the Listing Realtor’s perspective:
Delaying offers for 5 or 6 days allows more potential buyers to view the home which will only increase the number of opportunities and the potential for multiple offers. Remember…the listing REALTOR® is hired to look out for their clients’ best interests which has everything to do with the seller getting the best offer possible.
From the Selling Realtor’s perspective:
Well, it depends who you ask. Some may say it is a frustrating new trend in our market. Others will say in a market starved for inventory, at least it allows the buyer to see the home, think, breathe and do their due diligence before deciding to proceed with an offer.
Here is the critical point to remember though:
Our market is in serious need of inventory in spite of the fact that the number of sales YTD (to August 1st) are actually up by almost 10% (according to local MLS data). It’s a matter of increased demand both locally and up the highway to the infamous GTA area.
The GTA factor is another reason why delaying the presentation of offers can make sense. When a segment of the demand is an hour drive away, receiving offers 10 minutes after the sign goes in the ground may not serve the best interests of the seller.
One way to sort through this is to consider what if the delay of offer presentation didn’t happen. The sign went in the ground, showings start 8 seconds later and the home is quite possibly sold by dinner time.
Put yourself in that seller’s shoes. Did they miss out on opportunities?
Now put yourself in the buyer’s shoes. You are at work. The most beautiful, ideal home for your family hits the market and you get an email from your Realtor. “Yes please! We want to see it tonight!”
In today’s market, chances are it has an accepted offer before you finish work and get into your car.
So, yes, the delay of offers can be frustrating and appear to be a conspiracy against all rational, motivated and able buyers but it is not a simple, clear cut process. The factors involved in how a home is sold in our area have changed drastically in the last year. It requires much more strategy, careful steps and a plan to execute.
If you would like to discuss our current market, your home or (real estate) life in general, feel free to contact us anytime.
Thank-you for visiting.
Sally McGarr Realty Corp., Brokerage