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.
ComplianceListing NoteFor Multiple Offers Training Video
Always follow TRESA (Trust in Real Estate Services Act) guidelines. If you are the designated listing agent, you must act in the seller’s best interest at all times. If discussions with buyers shift into advisory territory, present the RECO Information Guide. If you are hosting the listing but not the designated agent, you are providing service to the seller and may still provide the guide to visiting buyers for clarity.