Owen sound & Multiple Offers / Bidding Wars?
(March 10, 2017 )
I believe it would be an accurate statement that Owen Sound and the Grey Bruce Real Estate Market has seen more 'Multiple Offers' and 'Bidding Wars' in the past 1 year than the previous 5 years combined!
2017, in many categories, is leaning toward a Seller's market! It's both an exciting time, a time where feelings are hurt, a time where mistakes are made, and ultimately a time where true industry professionalism is put to the test.
Here are some do's and don't's when dealing with multiple offers:
1. Offers Are Confidential
When a Seller receives the great news that they are receiving MULTIPLE offers on their home, the only information that can be shared (and must be shared with all buyer parties) is:
- How many offers are received. This includes updating all parties when new another offer comes in.
- If any of the buyers/offers are being represented by the same brokerage as the Seller
- If the Selling brokerage has an agreement to reduce their commission if the home/property is purchased by a certain brokerage (this would usually mean the selling agents buyer)
2. Notify Everyone
The ugly truth is that greed (and perhaps laziness) can sometimes get in the way of doing what is best for the Seller. When an offer is sumbitted, it is the listing Brokers responsibility to notify all parties who may have an interest in bringing an offer. This includes previous (especially recent) showings where there was positive feedback and showings that are booked for the coming days.
There is a temptation to try to get an accepted offer when the buyer is brought by the listing agent. Informed sellers can be diligent, and upon receiving an offer, asking their agent if they have notified the various parties mentioned above.
3. Missing Information can be detrimental!
Buyers agents have to be very diligent in making sure offers are written well (to protect the buyers) and are complete (not missing signatures, critical information). Conditions protecting the buyer can be overlooked and potentially can backfire causing grief and lawsuits after a deal has closed. (ie. Well inspection for rural properties) A forgotten signature on the Confirmation of Acceptance, or even an initial on a schedule 'A' could be enough for a seller to back out of an 'accepted offer' and to accept another!
showing a house in the afternoon, writing an offer in the evening. Conditions protecting the buyer can be overlooked and potentially can backfire
4. The highest price isn't always the best price
Just recently I had a buyer client who sold their house in the Hamilton area. After bring on the market for less than a few hours an offer rolled in the door. 15K over asking!
5. Take a back-up offer