Toronto Homes: Number of Days on the Market
The actual home sale times may be pre-determined
Here’s an article from today’s Toronto Star, about the average number of days it takes for a home to sell, comparing different Toronto neighbourhoods: Toronto Star – Comparison of Average Days on the Market to Sell a Home.
What they did NOT mention is that the number of days on the market is not the actual time it takes for an interested Buyer to bring an offer. The date for receiving an offer is usually predetermined by the Seller and listing agent.
The Offer Date
Most new listings in desirable neighbourhoods, where the number of buyers outnumber the available listings, will set a specific date, aka “offer date“, for receiving offers. The date is up to the Seller and/or real estate agent, and can range from a few days to a week or more. It’s possible that the Owners may be out of town, or have a very restrictive schedule, but in most cases, this date is strategically set to receive the best sale result. This waiting period gives more Buyers a chance to view and consider the property, as opposed to considering the first offer that comes in (if that were the case, houses in these areas could sell within a few hours on the market).
On the offer date, all interested Buyers will have an opportunity to give an offer/bid on the the property. It’s a very stressful situation for the Buyer: competing with other offers/Buyers in a ‘bidding war’, and in the end, the offer that is accepted is usually the highest price with least conditions (ie. no home inspection or financing condition) … a risk a Buyer may take to ‘win’ the house. The Seller will select the best suited offer, and the house is sold that day
Multiple Offers and Bidding Wars
The multiple offer/bidding war sounds like a crazy process, which it can be, but understanding how it works can ease some of the stress:
- For a HomeBuyer, this means knowing your limits, being pre-approved and prepared to roll with the punches. Having an experienced agent who you trust and work well with is highly recommended throughout this process, which could take lots of time, emotions and patience.
- For a Home Seller, it could be stressful if not handled properly- having a real estate agent who is experienced to manage the multiple offer process: including all the cooperating agents, Buyers, and their offers, while providing guidance to the Seller throughout this intense situation, is crucial to a successful sale result.
Please feel free to ask any questions, offer comments or share your bidding war/offer experiences. I will write more about this important topic in future posts. Cheers! Christine email@example.com
Christine Ng, Broker, Royal LePage Signature Realty 416.443.0300