Here in Western WA - it's the new craze !
Like a wave, the Offer Review Date has spread from Seattle to every city in Western WA.
For those not familiar, an offer review date is used by a listing agent who markets the property with the intention of building urgency, from Buyers, by including a future date where the Seller will review offers and choose the lucky Buyer.
In a hot market, it has it's advantages - primarily by driving interest and influencing Buyers to buy - NOW !
How the listing agent prices the property is the key to success.
They use a list price that's lower than market value to create the interest.
Yes, they must discuss this with the Seller(s) and include the disclaimer that, should there be only a single offer, at list price, you'll be obligated to perform/sell.
Again, in a hot market - the risk is minimal, but nonetheless present.
I've seen more than a few agents play with the offer review date field - changing the dates or eliminating it, after it becomes obvious it's not working out, altogether.
I've, also, experienced agents doing the opposite - where the listing states "Seller Intends to Review Offers Upon Receipt" - then they receive an offer, believe more offers will be coming and change the listing to an offer review date listing....again, AFTER they've received an offer.
Finally, I've experienced having a Buyer whose offer was not, initially, the winning offer - but we got a call back, days later, asking if we were still interested.
If you're in the luxury market, offer review dates aren't an issue, overall.
Bottom line - it's a hot market that enables these scenarios to play out, day after day.
So, if you're a Buyer or a Broker representing a Buyer - fasten your psychological seatbelts because it's going to be a crazy ride !
Contact me if I can be of service.
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