Only about 17 per cent of sellers who set offer dates actually received offers they accepted, according to real estate search service TopHouse
Ask a home buyer what they dread the most and the answer may very well be a bidding war. What they might not know is that right now the vast majority of home sales employing the offer day strategy – a day the seller sets aside to consider any bids on the property – result in no offers and no sales., the percentage of all homes listed for sale that sold on an offer day is somewhere around 7 per cent in the largest real estate board in the country, the Toronto Regional Real Estate Board.
The setting of an offer date is sometimes used to encourage multiple bidders to compete against each other. “There’s been offer nights for so long; the market’s really been trained to do offer nights, especially if they want to be in a hot neighbourhood,” said Davelle Morrison, a broker with Bosley Real Estate Ltd., in Toronto. “It’s like Pavlov’s dogs: they’ve been trained. Even buyers who say they won’t deal with offer nights? Eventually they are going to get worn down and have to deal with an offer night because they don’t have a choice.
For the current market, Mr. Amir is confident in his numbers: TopHouse has been getting raw data from TRREB for a few months. But Mr. Amir also ran a regression analysis based on publicly available data looking back over 10 years and while he doesn’t have as much confidence in those findings they suggest the offer day strategy is a lot more successful in hot markets with low volumes of listings, such as in 2017 and 2022.
“I won’t be doing it with everything: it has to be a specific type of property where demand outweighs available supply,” said Andre Kutyan, a broker with Harvey Kalles Real Estate Ltd. Mr. Kutyan mainly transacts in high-value homes in midtown Toronto but even he only puts an offer day on about a quarter of his listings. Too often he’s seeing seller’s pricing too high to generate buzz and a critical mass of bids.
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