As you have probably heard, Cowichan Valley real estate is in demand with record low inventory and high prices. Many sellers are seeing this as an opportunity to see an excellent return on their property investments with many buyers seeking to upgrade within the Cowichan Valley and many people wanting to move here to take advantage of our open spaces and recreation opportunities.
One of the common real estate terms being used by both buyers and sellers is "holding for offers".
What does "Holding for Offers" mean?
In a more balanced market it would be common for sellers to consider the first offer that they receive once their house is listed. It might be the first person who views the home, it could be the tenth person – in any case, the seller has committed to a ‘first come, first served’ approach to offers on their home. The thought is that the first few buyers are the most motivated and will likely offer the best prices.
Right now, we are currently in a strong seller’s Cowichan Valley real estate market, which means there are fewer homes available than eligible buyers – sort of like a game of musical chairs – with more serious consequences.
In order to maximize the best possible sale price of their home and the very best conditions possible, sellers with the advice of a Cowichan Valley REALTOR® are "holding for offers". They are not looking at offers right away, they are instead making the decision to wait and give as many people as possible the opportunity to view their home – with the hope that will increase competition. In particular, it gives more out-of-town buyer’s the opportunity to view – and the out-of-town buyers are more likely to pay higher prices and offer better conditions.
Note: this does not imply that an out-of-town agent can bring more out-of-town buyers if they list your home – that simply isn’t true – they cannot ethically represent a buyer anyway. Your best success in the marketplace will be determined by the experience and marketing of your Realtor®.
This "holding for offers" approach can be very successful in this real estate market, resulting in offers over asking price and in some cases, unconditional offers – both circumstances will significantly benefit sellers.
What are the Risks?
One of the risks with "holding for offers", is to make sure a seller doesn’t underprice the house in the hopes to drive up offers. If a house is underpriced, the final offer price might not be above what the proper list price should have been. Prudent investigation and discussion with an experienced REALTOR® is critical to maximizing value.
In Closing
Finally, a hot seller’s Cowichan Valley real estate market doesn’t mean that shortcuts should be taken with the listing. Every effort should be made by the REALTOR® to provide every possible bit of information on the home to potential buyers and all avenues should be used to promote the home for maximum value.
It is prudent for a seller to choose a Cowichan Valley REALTOR® who will help properly research and prepare their home and have a solid game plan in place to generate interest and the best possible offer on their home.
If you have further questions on this topic, please contact our team today.