What To Expect On Offer Night For Buyers and Sellers

January 21, 2022 | Buying a Home

In real estate circles, the term “offer night” can send a course of adrenaline running through both buyers and sellers. For sellers, they’re desperately hoping that buyers will come forth with offers. On the other hand, Buyers fear that they will lose out on the house of their dreams in a very competitive market.

First, what are offer nights? Offer nights happen when a seller has intentionally under-priced their home in the hopes of sparking a bidding war among buyers. The seller then sets a date to “entertain” offers, usually about a week after the property has been listed. The hope is that many buyers will bring offers on offer night, and the house will sell for a lot of money. Therefore, this strategy favours sellers over buyers and is quite common in seller’s markets. In Toronto and other hot markets around Ontario, this is standard practice.

Tips for Sellers

Remain calm

Indeed, sellers always feel like they should be getting more money than they earn, and buyers always feel like they are overpaying. It can often feel like a low-ball offer is a personal insult to the sellers. If you get a low offer, just say thank you and refuse it or counter it. It is unlikely that the buyer is trying to insult you or your house.

Rely on market statistics

The market will tell you what your house is worth before you put your home on the market. Rely on that data, and don’t try to dream too big with your price over what may be reasonable.

Trust the process

Your agent will send you all the offers that have come in and review them with you virtually. At this point, you have three options a) you can accept one offer, b) refuse them all and send them back for more money, or c) negotiate with just one offer. Ask your agent’s advice and follow the process so that buyers feel that you are being predictable and transparent.

★ For more seller resources check out:

Tips for Buyers

Remain calm

This is harder for you to do than for sellers! Offer nights are tough on buyers because there is often a lot riding on whether or not you get the house you love. It is important to remember that there will always be another house if you don’t get this house.

Do your homework first

Going through the small print of an offer is time-consuming and tedious. Your agent should spend the time going through everything with you before making your offer. I often find it helpful to go through the offer paperwork well before you make an offer because, that way, you can focus on the paperwork, and you’re not generally nervous about whether or not you’ll get the house.

Don’t take it personally

Buyers can often feel like the seller is bullying them if they send them back and ask for more money. They aren’t. Sellers are worried that they’re leaving money on the table. Let your frustration get in the way of buying a house that you love.

★ We have an extensive library of resources to help buyers navigate the process:

Since the beginning of COVID, the real estate industry has pivoted to making offer nights virtual. This has been an enormous improvement to the process. No more do buyers need to sit in their cold cars anxiously waiting to hear if the seller will sign their offer. Now, buyers and sellers (and.. Ahem.. their real estate agents) can work on offers from the comfort of their own homes in their jammies. That’s better for everyone!

If you have any questions, please reach out.

As always, Stay safe!

Robyn VanderVennen
The Kim Kehoe Team