Years ago, a client called me at 6 a.m. the day after winning a bidding war.
She was so upset and asked if I could get her out of the deal. She realized she had gotten carried away.
Thankfully, we did get her out of it but there could have been a lot of bad ramifications.
This week, I’ve been debating taking on a client who bought her house in what I suspect was a bidding war (with another agent) and now wants to sell.
She paid too high initially — over $1 million — and has since added improvements. Now, the price she wants to list at is too high.
When I’m offered an overpriced listing I always ask: Is it saleable?
Do I want to try and market something that I really don’t think is saleable at a certain price?
That’s a decision an agent has to make because you could end up trying to market something for four-to-six months only to have the seller replace you with another agent.
Inevitably, the seller will lower the price if they really must sell, but for an agent it could be a waste of time, effort and money.
In this case, I probably won’t take the listing because I don’t think this client can get her asking price.
On the other hand, I am encouraging all of my clients interested in selling to list now.
As the holiday season approaches, many people believe that they should wait until the New Year to buy or sell. My position is that if you are considering relocating, this is the ideal time to do it.
Why? Because the resale market is strong and there is a shortage of houses on the market for sale.
With demand exceeding supply, the good news for sellers is that house prices are increasing.
Now if you’re a buyer in a bidding war, remember you really have to go into it with your head on your shoulders. Know your affordability and what you can handle and don’t let your heart take over your head.
Unless your agent accepts calls at six in the morning.
Elli Davis has been awarded the #1 position in Toronto for Royal LePage (approximately 13,000 agents nationwide) for the 22nd consecutive year and the #5 position in Canada for Royal LePage. Read her weekly blog at PostCity.com. For more information on Elli Davis click HERE.
