# 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. --- ### **[Listing For Multiple Offers Training Video ](https://www.youtube.com/watch?v=Ei8U04Yq0Ok)**