Presentation of Offers: What is It & How Does it Benefit the Seller?

It’s spring, which means it is one of the busiest times of year in the Saskatoon real estate market! Homes are selling like hotcakes, which can bring new challenges in selling your home and especially accepting offers. 

During these types of market conditions, often, a presentation of offers strategy is recommended to receive and review offers with the seller. But what is a presentation of offers, and why is it preferable in this type of market?

What is a Presentation of Offers?

A presentation of offers is straightforward. The offer presentation is a set date and time in which all offers will be presented at one time to the sellers. With this system, the seller will be able to see all the offers on the table before choosing which one, rather than receiving offers one by one over a period of time. There are clear benefits that come with this type of offer system and some challenges. 

Benefits of a Presentation of Offers

You could get a better price on your home. This type of offer presentation aims to create a bidding war between sellers. Since every seller has the same due date, some sellers will offer above the asking price to get an advantage over the competition. As a result, you may get a better price on your home or find an offer that best suits your needs as the seller. 

You can feel comfortable that you’re not missing out on offers. Receiving offers can be a very stressful time in the selling process. It can be nerve-wracking waiting for an offer to come through, or if you do get offers, you may feel the urge to keep waiting to see if something better is available. With this system of presentation, you can feel secure in having a set end date in which you will be able to see all offers available at this time. It can help relieve stress to have a hard cut-off for offers coming in. 

You can feel more in control with a set schedule. Similar to the last point, having a set schedule for your selling process can help give you a better sense of control while selling your home. With this system, you will have a set schedule for receiving and then reviewing the offers that come in. Having an end date for offers can help to reduce stress and better segment the process into clear stages. 

Risks of a Presentation of Offers

Listing your house at a competitive price. Part of the trick with a presentation of offers is to create interest and start a bidding war between buyers. To achieve this, sellers will often list their house at a competitive price or a price below the home’s market value. Of course, this kind of listing strategy can be a bit risky, so it is important to have an experienced real estate professional who can help guide and advise you through this process. This type of selling strategy can be effective in seller’s markets or market conditions where there is a high demand from buyers and a low inventory of houses. However, other markets may not be as favourable towards this strategy. 

Receiving and reviewing multiple offers at once. While it can help to reduce stress knowing that there is an end date for all offers, once that date is passed, you may have multiple offers to review at once. It may feel a bit overwhelming to look through all the offers and choose which one is best for you. However, this stress can be significantly reduced with assistance from a trusted local REALTOR®. As a person with experience navigating offers, a real estate agent can help you pick which offers are worth considering or create a pros and cons list to help narrow down the decision. 

Overall, a presentation of offers in the right market can be a great choice to help you get a good price on your home. If you have any questions or concerns or are looking for assistance in selling a home in Saskatoon, please feel free to contact me at any time!