For a few years now the term “multiple offers” brought fear and frustration to many buyers and excitement to the sellers.  It use to mean the property was going to sell for several thousands of dollars over asking price. The most I saw was $80,000 over on a list price in the mid $700,000 but have heard stories of significantly more. When the market adjusted in February though, it was as if they went away over night. So, have “multiple offers” come back? Well, yes and no. Things are different now.

If you remember back to early 2022 at the peak of the market when it seemed every property was going into competition and receiving 10, 20, even 30 offers in some cases. Some listings received many more than that. At that time listing agents were holding off offers for a week to 2 weeks just to allow people to see the property. If not, some sold in as little as 1 to 2 days and other agents became upset they did not get a chance to see it. Average sale price was over 110%. Thankfully that crazy market has had its time.

Today we are seeing properties holding off offers again, and priced well under market value to get attention. The difference is, they are not getting the same result. In most cases from the conversations I have had, the listing agents are not holding off offers in the hopes of getting multiple offers and selling well over asking. It is more like they want to see what you are willing to come to the table with. What is your starting point in negotiations? Same tactic but with a different strategy.

Let me give an example. A condo one of my clients was interested in was listed for close to $600,000 and 3 comparables were priced similarly.  After 14 days they lower the price to low $500,000s. Still it sits. As the property approaches 30 days on the market, the listing agent then lowers the price to just under $400,000 and sets a presentation day in 7 days. Her goal is not to encourage multiple offers and hope for a sale price over $600,000. Instead it is to get the property seen by as many people as possible and hope at least a few offers come in close enough to the original listing price that they can work with it. High $400,000s hoping to maybe see a 5 in the front. She knows she will also get several offers at the low list price under $400,000 and has no intentions to accept or even entertain them. Any real estate agent that researches the property and comparables at all also knows that the listing agent and seller will not accept any offer that low.

So, while it use to be used as a way to get many offers on the table and sky rocket the price, now low prices meant to encourage “multiple offers” and presentation days are more to get properties seen and let other agents know the sellers just want to get someone to the table. “Let’s start the negotiations, show me what you got.”

It is very similar to when agents list a house for $1. You can read more about that tactic in my article $1 listing? Did I read that correctly?

So if you see an unrealistic price and a presentation day, and you hear the phrase “multiple offers”, don’t worry. It is not like it was before. Even in competition most properties are selling close to list price maybe a few thousand over. It is a much more comfortable market that now is willing to accept conditions.

Let’s all breathe a sigh of relief and get back out there putting your property on the market or looking for your next home. If you need help or have any questions or concerns, please contact Ryan Ligeza.