18.4% Increase in 10 Month on a Small Condo Townhouse is Maple because of a Multiple Offers
Last month in March 2015, I sold a townhouse condo for $ 438,000. We asked $ 420,000. When it came to figuring out the listing price the only comparable property in the complex was one that sold last May for $ 370,000, and it backed on to a ravine with a pond, which made it more expensive and desirable than the one I sold. I knew the market was doing great and we would get multiple offers.
Listing Price Strategy
When I determine a listing price, there are a few factors I consider. Many agents will just do a comparison based on comparable homes sold within a reasonable time period, I go beyond that. I look at the competition, the supply and demand of the market – is it a seller’s market or a buyers market. The time of year, and how the current market is reacting, especially with many houses selling with multiple offers.
So we compared it to the one that sold for $ 370,000, then I looked at the competition in which a unit on the same street for $ 449,000, same size as my clients, but a lot more upgrades. I told my client that this house will sell theirs for more money plus we may get multiple offers.
We took into consideration of the possibilities for someone to own a home in Maple, Vaughan for a price of around $ 400,000. If someone would pay $ 350,000 and up for a condo apartment with condo fee’s starting at $ 400 a month, then why wouldn’t someone pay over $ 400,000 for a condo townhouse that even had a yard and a maintenance fee of only $ 113/month.
It Pays to Taken the Advice From Yours Sales Rep. (if they have experience and knows what they are doing).
So my clients agreed to the price I suggested of $ 420,000. We also specified that we wanted 48 hours irrevocable (this means that when an offer is given to us, that we have 48 hours to respond back to this offer). There are a couple of reasons to ask for 48 hour irrevocable time. 1. One of the sellers is out-of-town or something like that and additional time would be needed to respond. 2. It gives us the opportunity to get multiple offers in the 48 hours and create a bidding war. Thus the case in our situation.
The Buyers Agent Blew the Deal and My Client Went for a Lower Price Offer
The first offer I received was higher than the listing price and pretty clean. There was no BS, the agent was straight up.
Then I received another offer in which the offer was a lot lower than the first offer. Both agents were aware of each others offer, and they both were given the opportunity to make their offers better. The second agent who’s first offer was lower, insulted me over the phone by saying I’m playing him and that there isn’t even another offer. Strange, especially when the other offer was registered with my company. I felt a little insulted because I am completely honest and have integrity for doing the right thing. Considering there were multiple offers, I made sure that the playing field was fair for everyone. I explained to him, that based on our new rules, we are obligated to keep all offers when multiple offers are presented, and that he is welcome to come by my office after the deal is firm. He shut himself up.
“Like Dealing with an unscrupulous Used Car Salesperson”
He then presented “his better offer” to both myself and my client. He went into this speech about the quality of his client, and how he deals with his clients and a bunch of other stuff that meant nothing. My client looked at me, giving me a look like this guy is full of it. You know the saying “you got me after you said hello”. In his case “He lost us after he opened his mouth”. By the time he finished he lost the deal for his client. Both myself and my client felt uncomfortable with this guy, kind of like dealing with an unscrupulous used car salesperson. My client felt more confident and comfortable going with the first offer, even though it ended up being less than the “used car salesperson” 🙂
The Morrow of the Story
The morrow of the story is that each sales transaction is different and by having a person on your side that has a brain and knows how to play the game will make your experience great and you will come out the winner. Thinking outside the box is a great concept, try finding an agent that does.