The property was listed on the MLS on Wednesday. Showings were restricted to no sooner than the open house on Sunday at noon. In the remarks, we are told Offers will be presented to the Seller on Tuesday at 10:00 AM. What’s the objective?
If the objective is to give the listing firm a leg up on the competition to attract a buyer and earn more money, data exists to show this does or does not work. (I hope the data proves this is not the result.) If the objective is to give buyers a fair opportunity to get their offer considered, or if the objective is to give the sellers more offers to consider, the empirical evidence has not been gathered.
Retail business with thousands, and thousands of potential buyers for a limited product can prove the limited window of buying opportunity increases demand and subsequently price. (Thing Black Friday) The data base is big enough and the evidence is solid for comparison to sales with or without the limitations. That’s not true for real estate. Even in a Seller’s market like we just experienced we probably can not ( I doubt we have tried) accurately measure the effect on price or demand.
The real estate industry works in part because it has the means to expose individual properties to a mass market of buyers…many who are qualified, motivated, and NOT in the community. A limited window of opportunity may corral a few folks who are nearby at that moment. Those who are not nearby are eliminated; they are effectively blocked from the property.
If this method of squeezing the market to a tiny window of a few hours of time is more advantageous to the Seller and not detrimental to the marketplace, where’s the evidence?