| Bidding Wars

πŸ™‹πŸ»β€β™‚οΈΒ  WE’REΒ GLAD YOU ASKED, with Amir Β πŸ™‹πŸ»β€β™‚οΈ

 

Q: Amir and Aleks, why would a Seller hold back offers, and then not accept any on offer night, only to reprice the next day?

A: In a heated market (Demand > Supply), a Seller/Agent can’t be 100% certain on what they might sell for, as there may be parties willing to pay above market value. So they hold back offers, to give exposure. The Seller typically has a bottom line, but sometimes, if they don’t get what they want, they reprice the next day, in and around the mark they intended to sell for in the first place.

Q: Why not just price at what you want then? This sounds like a game!

A: Good question, I’m glad you asked, in this market (cooler + Demand and Supply look more equal), that is the more logical approach. But you still have Agents and sometimes Sellers who insist on the underprice strategy, as they may feel they’re leavingπŸ’°Β on the table otherwise. It’s not a game, but simply a strategy (that is nowadays used incorrectly a bit too often).

Q: Why all the games, doesn’t this piss-off prospective Buyers?

A: Yes and no, if you’re understanding of the process (it has ben thoroughly explained to you by your Agent) you understand, and expect the possible outcomes … but like everything else, the weakest link in any process is often man .. people make errors and often forget the impacts their actions have … watch the video below to see a specific example and how in this real situation that happened last night while we represented our Buyers, the Agent and Seller are, in our opinion, in the wrong .. and not doing anyone any favours … certainly not public perception.

The Real Estate industry is awesome! But, no different than any other, in that, you have the good, the bad and the ugly.

Here’s a bit of advice to Realtors, a bit of comfort for Buyers and just general guidance in standard operating practices and why.

Also if you have a question that needs answering feel free to leave it in the comments below or send us an email. Remember, no question is stupid, we do this everyday and you don’t, so ask away!

Written By Amir Shahi

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