In this seller’s market, more and more agents are using an offer review date on their listings. That simply means ALL offers will be reviewed by the seller at one time, rather than individually as they come in. Usually, the offer deadline is usually just a few days after the listing goes live. Why does it work so well?
- Adding urgency: Buyers can’t take much time to think it over.
- Increasing competition: It suggests there will be multiple offers (whether or not that is actually the case)
- Encouraging bidding wars: Agents can leverage multiple offers to get buyers competing against each other.
- Helping sellers make a decision: Assembling all of the offers at one time makes for easier comparison and evaluation.
- Helping buyers understand the realistic timetable: They know how quickly they need to tour the home and submit an offer (hint: it’s a short window of time!).
- Allowing for more showings: If it weren’t for offer review dates, homes would be flying off the market on the first day, often to the buyer who got on the tour schedule first.
However, sellers and their agents keep their options open. For instance, they reserve the right to review and accept offers sooner than the review date. There are situations where buyers submit higher offers right away, with a short expiration period. By doing this, they put reverse pressure back on the seller to make a quick decision.
If you’re selling your home, consider listing it at an enticing price point (vs. asking top dollar) and setting an offer review date. That’s a great strategy to start a bidding war on a desirable property! This is especially true if your home is in the lower to mid-tier price points.
And if you’re buying a home soon, you don’t have the luxury of time to casually browse new listings; you need a pre-approval letter or proof of funds up front. And don’t over-bid just because a deadline has been listed; your agent can help you evaluate the situation by finding out exactly what kind of competition you’re up against.
If you’re buying or selling a home in Kitsap County, give me a call at 360-979-6411 to strategize and discuss the latest market trends.