Let's walk through the process of an offer day from a seller’s viewpoint.
Listing Price & Timing
Most sellers who choose an offer day also list their property with a suppressed (lower than market) listing price. The thinking with this is that a lower price will attract more traffic and offers, creating an auction. The goal is to extract the highest price and a closing date, deposit, and terms preferable to the seller.
Week of ShowingsIf all goes well, the property will have an influx of potential buyers for the approximate week it is being showcased before the day offers will be reviewed. You should plan to have a second location to lay low, as you shouldn’t be at home for showings. Lots of dinners out, and likely staying at a friend/family’s home.
Anxiety ManagementWhile your property is in the showcase phase, you will likely be overwhelmed with questions and doubt. Are we getting enough showings? Do buyers like it? Am I going to get multiple offers? Is this the right strategy? What happens if I don’t sell on the offer day? This is very common. Often buyers are very coy, keeping their interest private until the last minute, so your listing agent will have trouble gauging actual interest. Unless you receive a pre-emptive or bully offer, you will have minimal feedback from buyers. Hold the line! Manage your thoughts. Make the next decision when it’s appropriate.
The Big DayThe day has finally come! Your listing agent has likely sent instructions to all interested parties regarding when/how offers are being reviewed, and your preferences with regards to closing date and inclusions/exclusions. Normally, listing agents will ask buyers to register their offer 2 hours prior to the offers being reviewed. The term ‘registered offer’ should mean the buyer’s agent has a signed offer in hand.
Unfortunately, like the definition of ‘den’, agents have stretched the idea considerably. In years past, buyer agents would present their clients’ offer in person either at the house or the listing brokerage’s office. Buyers were nearby, ready to initial changes/improvements. Most offers are now reviewed by email, with buyer agents sending offers at, or around the time the offers are expected.
Review & DecideNormally, a listing agent will ask buyers to ‘bring their best offer’, with the intention of accepting the best offer outright. Very commonly buyers are given feedback, and asked for improvements and given a second round to submit an improved offer. Normal feedback for a buyer might be to make the offer firm (remove financing or home inspection conditions), improve the price, improve the deposit, adjust the closing date, and make corrections found while reviewing the offer. If all is successful, you have multiple offers to choose from to accept. Once it feels right, accept the offer you like best and march towards your closing day.
Failed Offer DayOh no, the offer day brought no offers, or maybe a low-ball offer. You’re likely furious and confused. Don’t worry, you can adjust your strategy and still sell your home the conventional way. Today’s market has the memory of a goldfish. There’s likely a list of reasons you didn’t receive offers. Maybe another house for sale was stealing attention. Maybe your house isn’t ideal for an offer day, and it’s reserved buyer won’t compete on an offer day. If the listing price was suppressed for the offer day, adjust it to a real ‘asking price’. If your home has an issue that scared off buyers, consider resolving the issue. Whatever the issue may be, try to listen to what the market is telling you, as you have a week of feedback already.
For free information or if have any real estate questions, or even considering selling your home, call us at 416-222-1212 or email us at firstname.lastname@example.org. We would love to help you.