SOLD in 0 Days, What does this really mean in the Toronto Real Estate Market?
You’ve all driven by the signs, on manicured front yards where REALTORS® boldly advertise that the house sold in 1 day, 3 days, 5 days and sometimes even ZERO days. What does this really mean? Can a house really be sold in 0 days?
I know REALTORS® bitch and complain on Facebook and other private groups, about properties sold in o days and it usually comes with an accusation that the Selling agent is pocketing the listing. Insinuating that they didn’t market it on the M.L.S. (Multiple Listing Service) to double-end the deal and take home all the commission.
Pocketing a listing means: that the Selling agent signs an Exclusive Listing Agreement. During this period, only he/she can market the property to find a buyer. They may or many not cooperate with any other REALTORS® who has a buyer for the property.
Normally, the exclusive period is to help prep the property for sale before it gets listed on the MLS. However, there are times, when it is used exclusively to double end the deal in the REALTORS® personal interest.
The vast majority of REALTORS® agree that this practice hurts the Sellers from getting the highest value for their house. How?
Basically, there is no amount of exclusive marketing a listing agent can do through open houses, neighbourhood mailers, social media advertising, door knocking, etc. that can reach- ready, active, motivated buyers who are currently working exclusively with other REALTORS®.
So if you are considering selling your condo or house, do yourself a favour- list it on the M.L.S.
Getting back to SOLD in 0 Days. Does this happen legitimately? Absolutely!
Real World Example:
On March 2nd, I listed a condo at Scarborough Town Centre. I priced it to market value, based on a comparable that sold 2 weeks ago. Our listing was tenanted and required 24 hour notice for showings. During the day, several showings were booked for March 3rd. However, early evening, I received a phone call from a REALTOR® wanting to place an offer. I said, sure anytime, but give me 24 hour irrevocable. That simply means that if my clients don’t respond within 24 hours, the offer dies. I emailed her the floor plan as requested and she had seen my video and MLS pictures.
An hour later I got a call from another REALTOR® who also wanted to place an offer. I said absolutely, letting him know there was another possible offer. A little while later both REALTORS® emailed their offers. However, the second offer had an irrevocable time of 9pm. So I had three hours to respond. I called the Sellers to see what they wanted to do. We decided both agents would present their offers at the office for 8:30pm. Since both offers were firm, (without any conditions) it was just a matter of accepting the ones with the best price, and buyer with sound financial history.
The condo SOLD over Asking and Sold in 0 Days!
In this scenario, you can see that though I marketed the condo with high quality pictures and videos. The real reason it sold in 0 days was because of the value the MLS brings to reach thousands of potential buyers. You would also be right if you thought that the condo wouldn’t have sold in zero days if I didn’t have quality pictures and a walk-through video for potential buyers to see.
The lesson of the story is: EVERY LISTING DEMANDS to be on the MLS, with HIGH QUALITY PHOTOGRAPHY at the minimum!
So can listings sell in 0 Days! Absolutely! Should they have a minimum listing period? A great question! All depends on the market you are in and the type of property you are selling.
In a Sellers market, especially for houses that are staged, definitely have a minimum 1 week for viewings! But for tenanted properties, where it doesn’t show well and it’s difficult to get Tenant’s to cooperate for viewings- then no. The worst thing for any property is to be dangling on the market for a long period of time!
If you have questions regarding selling your house or condo and investing in the GTA. Call us and we can help!
Cheers, Jas Jagpal, BROKER, ASA, CNE
Watch out for my next blog: Why Buyers REALTORS® should FIRE