How To Get Multiple Offers on Your Home

Every home seller dreams of having multiple offers on their house, after all it’s one of the largest assets that most people can attain in their lifetime and getting a good return on investment will be one of their top priorities. There are many factors that affect whether or not your home will receive multiple offers, however arguably the most important factor would be the current state of the market in terms of supply and demand.

Understanding the Real Estate Market Conditions

In a balanced market , where demand and supply are equal, the aforementioned “other” factors will become much more significant. Due to the coronavirus pandemic and other conditions, we are currently in an unbalanced sellers market , where demand outweighs the supply; the perfect conditions for sellers to receive multiple offers on their homes. The government has also announced their plan for permanent resident admissions, namely immigrants, to reach the levels of nearly half a million people . The influx of immigrants will significantly increase the demand for houses as the new permanent residents will all need some sort of housing.

If it is an unbalanced buyer’s market , where there is more supply than there is demand, it’ll become much more difficult to receive multiple offers on a house, let alone sell a house. A balanced market, where demand and supply are equal, won’t be nearly as difficult as a buyer’s market. When it isn’t a seller’s market, you’d have to perform certain actions to help your house perform favorably on the market.

A Price Tag they Can’t Refuse

One of the best ways to get multiple offers on your home is to create an auction atmosphere. Auctions are an incredible selling tool. There is an incredible psychological experiment where they got people to bid on a $20 bill, the unique twist being that the second highest bidder would also have to pay their bid. Of course, the allure of buying a $20 bill for anything less than that was too sweet to resist.

However, the irrational part begins when the bidding reaches $20, most people will have stopped bidding at this point but the remaining two bidders will usually get stuck in a deadlock, bidding against each other to suffer the least amount of loss. Their competitive spirit takes over, all reason goes out the window, and there are anecdotes of bids reaching $2000! Obviously, housing bids won’t be as irrational since more capital is involved and there isn’t a penalty like the experiment. A low starting price, a price that’s too good to pass up, is the perfect incentive that will ignite a bidding war.

Open House and Home Showings

Varying experts have different opinions on this topic, give ample access so buyers can come and go when they please, or limit the viewing times so that many potential buyers are viewing the location at the same time? It’s difficult to say which is right, both ways seem to hold some merit, then the best method is whichever is more convenient for you. In the current state of coronavirus pandemic, things are different since large gatherings are prohibited but online listings can bring in many viewers so hire a professional to take the listing photos.

Home Improvement

A commonly asked question is what steps should be taken to prepare a home to be sold. Huge, costly renovations aren’t something most people want to spend money on, fortunately the famous saying of keep it simple applies here as well. Low-cost home improvements prior to listing can go a long way.

● Fresh paint
● Replacing outdated light fixtures
● Refinishing floors/replacing carpets
● De-cluttering
● Sprucing up landscaping/curb appeal

The most important factor of the list above would be the colour of the fresh paint. A quick google search will tell you there are many different colours that can enhance a room, what they all have in common is the shade. A softer and lighter shade of colour has generally performed better than darker colours.

Final Thoughts

Homeowners that can generate multiple offers on their homes will have done their research.
Luck is generally not a factor. As a seller, getting multiple offers on their home is the best
case scenario, and the above tips can help homeowners achieve that.