May 16, 2023
The benefits of delaying an offer presentation include more exposure, and competing offers, resulting in better prices and terms.
However, there are risks a seller assumes when holding off on looking at offers until a future date. One local home seller recently learned this the hard way.
Some buyers don’t want to wait. The seller, therefore, risks losing out on motivated buyers who won’t wait for the offer date.
Some buyers are averse to the delayed process. Buyers may shy away from situations that are perceived by them as unfair or weighted in a seller’s favour.
And, what happens if this strategy doesn’t generate offers? The offer date could pass without any offers, which might make the property less desirable, appear overpriced and remain on the market longer than expected.
A delayed offer approach may prompt some buyers to submit pre-emptive offers, also known as “bully offers”.
Bully offers expire before the delayed offer presentation date in an effort to avoid, or pre-empt, the established offer process.
We recently represented a buyer who submitted a bully offer on a property offered for sale with a delayed offer presentation date. The asking price of the property for sale was $595,000.
Our buyer submitted a bully offer for $750,000. The seller opted to wait for the delayed offer presentation date. The property sold a few days later for $605,000 … that’s $145,000 less than our buyer’s bully offer of $750,000!
In conclusion, while delaying an offer presentation can generate more interest and competition, it has risks.
Sellers should consider potential downsides, such as losing out on motivated buyers and receiving pre-emptive offers.
Ultimately, it’s up to the seller to decide if the benefits outweigh the risks. However, the cautionary tale of the local home seller who lost $145,000 due to a delayed offer presentation warns others to carefully weigh their options before deciding on a sales strategy.
Partnering with an experienced realtor can help sellers navigate the complexities of a delayed offer presentation strategy, weighing the potential risks and benefits to make an informed decision that will result in the best outcome for their unique circumstances.
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