Standard Procedure
Standard Operating Procedure: Managing a Listing in a Seller’s Market
Purpose:
To outline the process for listing, preparing, and negotiating offers in a strong seller’s market, where multiple offers and high competition are expected. This ensures a transparent, strategic, and compliant process that delivers maximum value for the seller.
1. Understand Market Conditions
In a seller’s market, inventory is low and buyer demand is high. This creates urgency and often results in multiple offers. Be prepared to explain to your clients how market dynamics — including interest rates, immigration, limited new construction, and investor activity — contribute to rising values and competitive conditions.
2. Define and Communicate Market Value
Educate your clients on true market value — not just based on comparable sales, but also on current demand. Use the definition of market value from the International Valuation Standards: the price a willing buyer and seller agree to under no pressure, after proper exposure to the market.
Remind your clients that fair pricing, even slightly under market, can generate greater competition and a higher final sale price.
3. Prepare the Listing Strategically
• Consider listing the property exclusively while preparing, to avoid losing it during prep.
• Set up staging, cleaning, and photography early.
• Do not overprice the property — it reduces traffic and buyer confidence.
• Prepare a marketing plan that includes online ads, video tours, and social media exposure.
• Ensure the home is widely available for showings, ideally allowing 30-minute appointments with minimal disruption.
• Pre-arrange to “hold off” offers for 5–7 days to build momentum.
• Communicate clearly and frequently with showing agents.
4. Managing Offer Instructions & Strategy
When holding offers:
• Do not include language in MLS about “pre-emptive offers” unless directed to do so. Leave flexibility for the seller while keeping buyer agents from gaming the system.
• Use clear offer instructions in BrokerBay, including registration deadlines, offer format, and disclosure policies.
• Reinforce to agents that the seller expects their best offer on offer night, and that improvement opportunities may not be given.
• Make it clear that verbal conversations and texts are not binding — all negotiations must be in writing.
5. Handling Bully (Pre-emptive) Offers
A bully offer is one submitted before the scheduled offer date in an attempt to force early review.
*If you intend to accept a bully/pre-emptive offer:
• You must notify all agents who have shown or booked the property. BrokerBay can automate this, but phone calls are still recommended.
• You must update the MLS with the new offer date.
• Failing to notify all interested parties may result in regulatory penalties (RECO requirement).
6. Offer Presentation Day
Before Offers Are Received:
• Ensure all agents know the registration process and cutoff time.
• Maintain consistent communication about number of offers and presentation timing.
• Confirm how offers will be presented (in person or via email).
When Offers Are Received:
• Review each offer in the order it was received.
• Record the agent name, brokerage, price, deposit, conditions, and closing date for each.
• Evaluate more than just price — consider conditions, deposit strength, closing flexibility, and overall presentation.
• Ensure your seller understands each offer clearly and is in control of the decision.
7. Finalizing the Offer & Communicating with Agents
Once a winning offer is selected:
• Notify all participating agents promptly and thank them for their efforts.
• Maintain professionalism and transparency to foster goodwill and future collaboration.
• Ensure all paperwork is completed and any disclosures (such as commission reductions or dual agency) are properly documented.