Why Wait for the Offer Review Date

The purchase process can be a real pain sometimes, but there are strategies that can be used to keep some order in the chaos.  Avoiding an offer for a day or two is sometimes the best option to cool the rush and position your offer.  I'll do my best to explain. 

Demand vs Inventory 

When interest rates are low, more and more buyers enter the housing market and crunch inventory that may already be critically low.  Any buyer looking for a home will have an eye on the market, and most homes will receive multiple offers.  The questions are how many offers will a home receive, and what can be done to best them? 

The Frenzy of Multiple Offers

When a buyer plans to make an offer on a home, the amount of competition that they face will influence their offer. If a listing broker already has 1 offer on a property, the 2nd and 3rd buyers will make incredibly strong offers. If a listing broker already has 5, 6, 10 offers, people go crazy. Sometimes rushing to put an offer in the listing broker's hands just kicks off the bidding war early and waiting may offer additional insight on how many buyers viewed the house, how many offers are in, what terms are on top, etc. That patience and data often comes in handy when writing a winning offer.    

The Review Date 

I love review dates.  They allow the seller some calming control over their schedule and the date and time that they will sit down to carefully review offers, and they are great for buyers. Some buyers and agents focus on the negative of an offer review date and worry that more time will only lead to more offers. While that is possible, an offer review date also allows more time for buyers to view multiple properties, carefully consider their options, and put together an offer that works for them.  Buyers do need to be aware that sellers are under no obligation to honor the review date, so there's always a risk that the seller could accept an irresistible offer before the review date.  Each buyer’s agent should keep up open communication with the listing agent to ensure that they are aware of any changes to the review date and time.

Breathing Room to Continue the Hunt

Holding off on an offer also gives you time to continue the search.  Maybe something will pop up that will be an even better fit.  Perhaps you'll find another house or two that you're equally happy with.  By holding off for a day or two, you buy yourself additional time and little peace of mind.