In the past year, Montreal has rapidly shifted from a buyer’s market to a seller’s market. With more buyers competing for fewer homes, homeowners are more likely to see high appreciation rates, bidding wars, and offers over the asking price. Generally speaking, homes sell much faster when market conditions favour sellers.
With the right strategy, sellers can take full advantage of the heated market and sell their home at the best price possible.
Unique listings, such as older but well maintained single family homes, will stand a better chance of generating a bidding war.
In markets where supply is very low, even fixer-suppers and tear downs stand a chance of receiving a multiple offers from competing investors.
How to Attract Multiple Offers in a Seller’s Market
Receiving multiple offers on a home requires more than just a sign on the front lawn. Here are a few easy steps you can take to maximize exposure on your listing.
- Stage your home for sale. Prepare your home for sale under your real estate broker’s guidance. Depending on the type and condition of property you are selling, staging could range from simply decluttering the rooms to repainting the walls a light, neutral colour or replacing fixtures. It is important to create a great first impression without overspending on renovations. A real estate professional will be able to distinguish between a good investment and an unnecessary one, when it comes to staging your home.
- Price your home slightly under market value. It may seem counterintuitive, but pricing your home slightly under market value will attract many more buyers, and is more likely to lead to a bidding war. If this strategy does not generate the expected interest, sellers can simply decline all offers and re-list the property at market value.
- Invest in a professional photo shoot. A heated market is no excuse for publishing dark, unattractive photos of your home. 90% of buyers begin their property search online, so it’s important to make a good first impression with your listing photography. If you are working with a real estate broker, professional photography will be included in their services.
- List your home on a Thursday. Most buyers plan their visits and open houses over the weekend. Going live on the market on a Thursday evening will give buyers enough time to discover the new listing on Friday, and book their visit for Saturday or Sunday.
- Batch visits on certain days and hours. Restricting the timings of visits, rather than allowing buyers to visit at all hours of the day will force buyers to visit the property in groups. Seeing other buyers also interested in the same listing sparks a competitive nature, and prevents low-ball offers on your home. Planning an open house is also a great way of attracting multiple offers during a short period of time.
When comparing multiple offers, be sure to review the buyer’s terms along with their offering price.
- Is the buyer pre-approved by their bank or lending institution?
- When is the expected closing date?
- Are there conditions attached to the offer, such as inspections or required renovations?
- Is the purchase conditional to the sale of another property?
Responding to offers
Once you have reviewed the multiple offers, your broker will contact all other buyers and ask them to resubmit their highest offer.
You can then choose to:
- Accept the best offer or
- Issue a counter offer to the buyer with the most attractive conditions