These days, when listing a home for sale, a seller will have a choice of either reviewing offers as they come in or all at once on a specified future date. While reviewing at a later date may seem like the correct choice in this market that favors sellers, there are factors to consider before that choice is made. Although one method may seem like the better option, both have their merits.
The case for reviewing on a set date:
If reviewing on a specific date, a seller has the opportunity to create a high demand situation. By setting a future date, more buyers can view a home prior to offers being reviewed. Potential buyers may then compete against each other because setting a future date creates competition. With the competition comes the chance for buyers to bid against each other and to write contingencies that favor the seller.
The seller can pick a review date that works for their schedule. It’s a seller’s market right? So, a seller should be able to set the time that they will be available to spend a considerable amount of time reviewing offers. There is also much to be said about being able to be in a good mental state. Choosing when and where you will review offers provides you the comfort of being able to make the best decision for you.
The case for reviewing offers as they arrive:
Choosing to review offers as they arrive avoids turning off or discouraging buyers. Because the market is so competitive, many potential buyers get worn out. They see a review date and decide they don’t want to be part of a fierce competition. Having a review date when no offers arrive is much like throwing a party and having no one show up. Now the seller is discouraged. To perspective buyers, the house is not as appealing because the offer review date is past, and the house is still on the market.
It is said that the best offer is often the first offer. When a buyer comes to the table first, they are making a case that they wanted the house more than anyone else. Because these “first buyers” rush to make an offer, they often offer the best terms. Choosing a review date could lose out on that buyer. Their hesitation could lead them to either decide against making an offer, or they could find another listing to their liking.
There are two sides to every story and the offer review decision is no different. Keep in mind that the “first offer” is often the best offer. Also, buyers can get put off by the offer review date and not put in an offer at all. Finally, someone putting in an offer may decide they don’t want to wait for the review date, resulting in a lost buyer. As always, confide in your real estate agent and decide what is the best course of action for your situation.