Can Withholding Offers Benefit You In A Sellers Market?
We know it can be quite the struggle entering the real estate market and listing your home, with all the little intricacies and pitfalls that come along with today’s market landscape. There’s a lot of things you have to keep in mind with selling, like trying to get the best value for your home.
It’s no secret that the current housing market in Eastern Canada and Ottawa is experiencing an unusual price spike that hasn’t been seen in recent years which can have you on edge.
As a result, real estate strategies have been changing to adapt to these shifts in the market.
One of the tactics that is currently being used, is pricing a home under market value, then having your realtor set a future date where all offers come in.
This creates competition to drive the price up beyond its listed price in the hopes of getting buyers into a bidding war.
Although this can sometimes be a great strategy in creating buzz around a listing, it doesn’t always seem to work out that way.
Below are some things we think should be considered when sitting down and deciding whether to withhold offers or not and if this can help you sell your home.
Buyer Burnout & The Seller
Buyer fatigue is not something that we think of right off the bat as something that would affect sellers, but is starting to become more common when you throw into consideration the pandemic, the lockdowns, and the changes to the way we do business currently.
With the ballooning of housing prices all over Ottawa, buyers may be experiencing market exhaustion from the lack of home inventory and may not want to participate in a sale where offers are being withheld. They may have already put in multiple offers that have been rejected due to this skyrocketing demand.
For sellers, this means that your potential buyers might step away from the market temporarily, entertain other more straightforward options, or decide to just not buy all together.
The market can be stressful, and buyers constantly have to have their head on a swivel to keep up with the short time frame which homes are on the market for, which they may not have the time or energy for. If you are selling and withholding offers, this can take an emotional toll on people interested in your home, especially if they have been looking for a new house for a while.
Your Ideal Price Point
Another issue with withholding offers is If your listing price is too far under what you expect to get.
Buyers are willing to compete up to a certain degree, but not past a certain point where they feel like it’s no longer worth it.
For sellers, this means having reasonable expectations, and creating less of a buffer between your listed price and your ideal offer can help make a sale easier and more straightforward.
Get Sound Advice From A Realtor
Every situation is unique, and a knowledgeable real estate professional should be able to guide you through if withholding offers is a good idea for your specific situation.
In this hectic market, withholding offers can be a tool that, when used effectively, helps rake in offers. This can help you feel like you are getting your home’s ideal value, which can be quite exciting.
For experienced real estate professionals, or just some friendly advice or a consultation, trust the team at LIFE to get you up to speed with real estate in Ottawa.
To talk about your home, and to see its value in the market today, click here for our free expert home evaluation: