What is holding offers? Holding offers are a marketing tool where Sellers offer a property to be viewed for a set number of days before looking at any offers from interested Buyers. This is a marketing tool but only effective in a seller's market. The hope is by the Sellers that Buyers will "compete" and pay higher prices for their properties.
In Peterborough we are still currently dealing with low inventory numbers BUT the market is becoming more balanced. The number of multiple offer situations are becoming far less common. When you do see multiple offers you are seeing close to asking price AND conditions. This was not the case in 2017.
In today's current market your home must be listed at least 5% under its market value in the hopes of getting 10% to 15% over asking. Most sellers are not interested in taking this risk. Sellers currently holding offers usually list at full value or over value. They are not getting multiple offers. However, their home or property do sell, just after the holding date.
Buyers seem to be reluctant to compete anymore, even if their interest in a property is great. Buyers have a fear of over paying for a property and as the market slips in value they don't want to be left being upside down for years to come.
OREA (Ontario Real Estate Association) is lobbying the government to put rules in place that change how multiple offer situations are presented. Currently the Seller and their Agent can not disclose what current offers are. As a Buyer in a multiple offer situation you have no idea what you are competing against so you may bid thousands, maybe tens of thousands of dollars more then you needed to win the property. OREA would like to have a transparent offer process to have more of an auction process. Keep in mind the Seller would have to still direct this process and may choice not to. Under current legislation, agents are prohibited form disclosing any of the financial or conditions of an offer. The current way of multiple offers is likened to a "silent auction"
So is "Holding Offers" right for your situation? Let's talk...
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Written for you by:
Your local Realtor®
Brad Sinclair, Sales Representative
Royal LePage Frank Real Estate Brokerage
Making Real Estate “Real” since 2007