You always read about it in the media and hear about your friends or family bidding on houses and trying to win it over 5 other buyers. But what really happens on the Seller side? Just to give you an idea we had a listing in the West end of the city. The house was listed for $699,990 and we said no offers until next week. The house was in a desirable area where there is definitely a lot of demand and low supply. Realistically this house should sell for high $700,000 to low $800,000 accordingly to the recent solds in the area.
On listing day we had an initial inquiry by a buyer. I showed him the house and he mentioned he does have a realtor. He came back for a second look and asked a lot of questions. I had a feeling he was going to try to do a pre-emptive offer (bully offer). Lo and behold the next day I received the offer 6 days earlier than our offer date. The offer price came in firm with an offer of $812,000. A very strong offer in my opinion. The seller decided to wait till offer day after I suggested it would be best.
After a week of showings and 2 open houses, we were finally taking offers. On offer date we had 7 offers. 3 came in at the mid to high $700,000. The bully offer buyer came in but only slightly more than the bully offer. 2 came in at the low $800,000 and one came in at $875,000! Totally blowing all the competition out of the water. We didn’t even bother asking any of the other buyers to come back as I only do that if the top 3 are close.
This buyer REALLY wanted the property and they didn’t hold anything back. Now a new bar has been set in that neighbourhood.
So there you have it, this is what happens on the seller side of a multiple offer.
*please note that some of the figures and data have been adjusted to protect the identity of the property
written by Kevin Yu