Who will get you the most money for your home sale? A good Realtor, or an online auction?
Chris shows you how a good Realtor has the potential to get you a lot higher sale price for your home in comparison to an online auction.
The main difference between the 2 sales processes is that a Realtor uses a ‘Closed Bid’ offer approach, versus the online auctions that use an ‘Open Bid’ process.
- bidders/buyers do NOT know how much the other offer prices are in a multiple offer scenario (or ‘bidding war’ ).
- offer prices can keep climbing indefinitely to astronomical highs
- typically sees one or two bidders who offer wayyyy more than the average offer price (and way higher than market value for the home)
- the buyer is motivated to offer the highest price they can for fear that they may lose the bidding war to someone else
- the highest offer will often be tens or hundreds of thousands ABOVE THE NEXT HIGHEST BID. This is the most important point to remember.
- bidders/buyers can see what the other offer amounts are in a multiple offer type scenario
- offer prices stop when the bidding stops
- the highest offer/bid will only be a couple thousand dollars more than the 2nd highest bid
- buyers are not always incentivized to offer their absolute maximum offer amount
When comparing these 2 processes, you can see that using the Realtor Closed Bid process allows the potential for a higher final selling price. As an example, I had a house listing in the west end of Ottawa last year where we had 6 offers on the house. When all the offers were in, the highest offer was $103,000 HIGHER than the next highest offer. This scenario most likely won’t happen if it’s an Open Bid process. My sellers were ecstatic and super happy to have such a home run.
If you’re thinking of selling your home, you will definitely want to speak to a good Realtor to find out what they do to get you the most money for your home. At the end of the day, the name of the game is to get you the most money in your pocket.
Any questions, please ask Chris Steeves! And please check out this video where Chris breaks it down using real examples of how to get the most money for your home sale.
Visit our website:
Follow me on Linked In