It's a Sellers' Market. Or is it?
Blog by Bill de Mooy | March 2nd, 2021
I was copied an alert of a new listing appearing on MLS. I had the alert set up for a buyer wanting a home with a suite as a mortgage helper. The new listing was located in Surrey and viewings were set for the coming weekend by appointment only. The listing agent stated in the Realtor Remarks that the seller instructed offers would not be looked at until 5PM Monday following the weekend. Offers to be emailed to the listing agent by 4PM Monday.
The list price $1,199,000
Below is the message I received from the listing agent on the day after offers were to be presented.
MLS: Rxxxxxx, 9999 141B STREET
Message: Hello, 9999-141B is still available as Seller did not accept any offer, New price already effective on paragon and showing schedule will be updated soon. Thanks..
The new listing price is now $1,289,000
Bill's thoughts: There appears to be "selling by reserved price auction" happening, whereby sellers have chosen to list at or slightly less than the latest comparable selling prices in an effort to encourage multiple offers and an attempt to obtain one or more offers significantly above a price listing price. The marketing process is becoming common in this "hot market". However, there are some sellers that have a desired selling price (reserved price). If this ploy does not work, its back to the common marketing plan of listing above a seller's desired selling price in the hopes of getting as close to it as possible.
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