Ep. 105 – How an Irrevocable Period Affects a Seller

Ep. 105 – How an Irrevocable Period Affects a Seller

January 31, 2020 0 By Luis Garrison


– Today’s video is for sellers. I’m continuing the
conversation on irrevocability, but this time, I wanna
focus on what it means when you’re selling a property, how you can use it to your advantage, and when not to be pushed around. Quick recap in case you
missed last week’s episode, the irrevocable period
is the length of time a buyer’s offer is
valid before it expires. So for you the seller,
it’s the amount of time you have to think about the offer before deciding what to do with it. If I were to make a long story short, the quick explanation would be that you want to see an offer with as long an irrevocable
period as possible. Why? You can accept as quickly as you’d like regardless of how long
the irrevocable period is, but an extended irrevocable period can provide a number
of advantages for you. One is that it just gives
you time to breathe, think clearly, consult with your agent, and people whose opinions
are important to you and go over the offer to
see if there are areas where you’d like to make
some changes and negotiate. If the offer has some conditions in it, you’ll have time to consider
the repercussions of them, and whether you’re comfortable
working with an offer that has them in it in the first place. Another advantage is that there would be extra time for hopefully some other offers to come in and you now have
a multiple-offer situation without planning for one. Having more than one offer
puts you at a huge advantage as you can dictate terms
much more easily considering that there are competing
offers for your property. A longer irrevocable period
is a prime opportunity for a great real estate agent to try and induce multiple offers. An offer presented with a
very short irrevocable period is a tactic used by a buyer
to put you, the seller, under some pressure to make a decision. Now, remember, you have what they want, so unless you’ve been on the market for a very long period of time and you really want what
they’re offering you, then there’s likely not a reason to panic or be desperate when
deliberating the offer. If you have a very desirable property, don’t let your yourself be pushed around. (upbeat music)
I’m Jamie Harnish, Toronto Real Estate Navigator
with Bosley Real Estate. As always, thank you
so much for your time. I appreciate you watching,
and I hope to see you again. Take care.