Joe And Doug Williams

Seller's Market Leads to More Multiple Offers

18 February 2020
Joe And Doug Williams

As many segments of the market heat up - we are seeing more and more multiple offer situations.

The term  "multiple offers"  can make buyers sweat, and sellers giddy. 

With one offer on a property - the seller and buyer might send counteroffers back and forth until they arrive at a compromise that all sides can live with. The presence of multiple offers changes negotiations drastically. The competing buyers put their best foot forward in hopes of having their offer selected. Sometimes improving their offers multiple times - adjusting price, closing date, and conditions - all to the benefit of the seller. 

In a “seller’s market” - a common strategy is to underprice a home - and set a date to review offers - with the hopes of generating competing bids. This orchestrated multiple offer tactic can be off putting to buyers - but if inventory is low & the property is desirable - buyers will begrudgingly participate. It can be a successful strategy - but if it does not work - it risks alienating would-be buyers. 

Less common - but not super rare - is the presence of multiple offers on a house that has been listed for a longer period of time. Multiple parties may be considering the house, but taking their time to act. Once an offer is submitted - the listing agent puts the word out - and it motivates other buyers to get off the fence. If a house has been listed for 3 months and receives competing offers - it bolsters the seller’s negotiating position - but doesn’t necessarily result in a full price or over-list offer. 

We help buyers navigate challenging market conditions by educating them so they can make well-informed, compelling offers. That may mean acting fast - and avoiding competition. Or it may mean increasing your odds of winning a multiple offer situation. For better or for worse - its all part of the GTA real estate landscape - and we have to operate within it. Call or msg us with any questions! We always appreciate it when you recommend us to friends & family. 


Joe & Doug