We advise our clients to list their properties at a price that reflects our belief in their actual value. We do not believe in the practise of listing low with the expectation that a bidding war will occur. All buoyant markets are like a game of musical chairs. If the music stops just as you go to market with a low price, there may not be a bidding war and you are left offering your house for sale at less than you think it is worth.
The purpose of creating a tender date for offers is two-fold. Firstly, it gives prospective Buyers a chance to consult mortgage lenders, building inspectors, family, and anyone else that might be helpful to them in the purchase of property. Secondly, if there is any chance that two or more Buyers will compete for the listing, then the Seller is nicely positioned for a multiple offer situation.
There is no downside to setting a tender date for offers and then finding there are none. We would simply re-run the listing, deleting the details about the tender date, and carry on with our marketing program.
The most valuable rule of thumb when evaluating price and time-lines in the sale of residential real estate reads as follows:
IF A PROPERTY IS PROPERLY PRICED, IT WILL SELL WITHIN 5% OF ITS ASKING PRICE WITHIN 30 DAYS.
This wisdom has served Buyers and Sellers very well in all market climates for the 42 years that I have been in the business. Buyers use it to figure out what to offer; Sellers use it to know when a reduction in list price may be in order.
We hope this information is helpful to you and look forward to representing your interests in the marketplace.