Saturday, September 27, 2014

Holding Offers - Who is REALLY Benefiting??

Ok here goes !!!  Being a full-time professional Realtor, I can honestly say that I have an equal amount of Buyers and Sellers this year, so this is being written with no pull one way or the other,  BUT in my experience, it has become apparent that holding offers is very prevalent.   My concern is this ... as a Buyer Agent - Is it not hard to keep your client motivated to participate in what I call a "goat rodeo"?????....They see the house, they love it and then you tell them, "Great, we have to wait until Monday night:"   Do they lose interest?  Do they talk themselves out of it?   Are they eager to participate in Multiple Offer situations?   I would have to say NO.

So now you have Buyers who are disengaged with the process.  They think we are holding them hostage and agents are over selling the properties and then saying, you need to go firm to win.   Is this really representing their best interest?

Then you have the flip side.  The Seller who thinks this is the way to do it.  List a bit lower than last sale and let people pay higher than asking and sell it in a weekend.   Sounds like the Listing Agent wins in that case and really would have to wonder if the Seller would not have gotten that price regardless if it was just priced at "market value" and let the offers come in as they are viewed and if a multiple offer situation occurs, so be it but don't force it.

I guess it depends on what side of the fence you are on.  I am not saying I don't hold offers ~ because now, most Sellers want that ... BUT ... even as a Listing Agent, if you get an offer priced way over asking and is firm, are you not a little worried at if it will appraise?   Just me speaking out loud here.  

I have walked away from offers when the prices seemed so inflated ~ I advise my Buyer "let's wait"... because honestly, "this house isn't worth it".... and I guess maybe that comes from having experience and knowing the homes in the Durham Region.   These crazy bidding wars usually are from out of the area agents coming into Durham Region and truly I have to wonder if they even know where the Durham/York Pipeline is or if they know about the Whites Road extension and so on.

So the bottom line, no matter whether you are a Seller or a Buyer, choose an agent you feel comfortable with, who KNOWS your neighbourhood and will REPRESENT YOUR BEST INTERESTS.

Happy House Hunting to  All and to all a Good Night !  :)
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