Everything You Need to Know About Offer Dates

If you’re in the process of selling your home, then you’ll need to consider how you plan to review your offers. Learn more about offer dates and how they can impact the sale process below.

By Emily Southey | 12 minute read

Sellers typically have two options when it comes to reviewing offers: to review offers as they come in or to review them on an offer date. Sellers who opt to review all offers together on a set date often price their homes below market value to attract attention. They also tend to be on the market for relatively short time periods and may be more likely to attract bully offers.

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Real Estate Offer Dates Defined

Before you can decide whether reviewing offers as they come in or on an offer review date is right for you, we must first define the term “offer date.” In real estate, the offer date, or offer review date, is the specific day and time that the seller has chosen to review all buyer offers that have been made on their home. The offer review date is made public so buyers are aware of this deadline. From there, interested parties must submit their offers by the deadline. While many sellers choose to honour their offer review dates, they are under no obligation to do so. Even if the seller sets an offer review date, they still retain the right to accept an early or pre-emptive offer (also known as a bully offer). Further, it’s worth noting that even if a seller sticks by their offer review date, they are not obligated to accept an offer on this date. It simply means that they will review all offers on this date. 

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Why are offer review dates useful? For sellers, an offer date in which they review all offers at the same time enables them to better compare the offers and possibly make a more informed decision. It may also have the added benefit of adding a sense of urgency, which could increase the competition and lead to multiple offers. Buyers can also benefit from an offer review date. For example, an offer date may give them more time to tour the home, decide whether to make an offer, and come up with an effective offer strategy that increases their odds of winning the home. Offer dates can be especially beneficial for buyers in hot seller’s markets.

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Reviewing Offers Upon Receipt versus House Offer Review Date

As mentioned above, there are two main methods by which sellers review offers: as they come in and on an offer date. Though listing practices vary by city, province, and even country, most REALTORS® will have the option to check one of two boxes when adding a listing to the Multiple Listing Service (MLS®): The seller will review offers upon receipt or the seller will review on the Offer Review Date (may review/accept sooner). We break down each practice below. 

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Reviewing offers upon receipt

When the seller decides that they will review offers upon receipt (as they come in), the implication is that they will accept the highest offer or the first offer that meets their goals. If the seller chooses not to set an offer date in a hot market, it might indicate that they do not expect to receive multiple offers on the property. There could be various reasons for this, such as the seller knowing they’ve priced their home above market value or there are elements of the home that might be undesirable to some (for example, a strange layout or noisy neighbours). When a home has no offer date, buyers are free to submit offers whenever they want. 

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While many sellers choose one option or the other for reviewing offers when listing their home, they retain the right to change their minds. This means that if they initially decide to review offers upon receipt but notice that the property is generating a lot of buzz, they can make the decision to set an offer review date. For many sellers, doing so might be in their best interests if they want to further drive competition and get the most money for their home. That said, by doing so, they run the risk of alienating certain buyers who might feel manipulated by this change in tactic.

Reviewing offers on a house offer review date

The second way a seller can review offers on their home is on an offer date. How offer review dates work is as follows: The seller decides to review all offers on a set date, which is published alongside their listing. Typically, the offer review date will be five to seven days from the date the property is listed. The purpose of this timeline is to give buyers and their REALTORS® enough time to visit the home in person and decide if they want to make an offer. If the home is priced to sell, an offer date can increase competition and lead to a higher number of offers. Even better, this increased competition may lead buyers to submit firm offers (those without contingencies) in an effort to make their offers more attractive. All of this may lead to a faster sale and allow the seller to sell the property as is, without any necessary repairs or a satisfactory home inspection. In hot real estate markets, offer dates, which by nature drive competition, can result in many offers and even a bidding war.

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The Pros and Cons of Offer Dates

To decide if setting an offer review deadline is right for you, we’ve identified the pros and cons of offer dates for sellers below. 

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The pros of offer dates

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• Increased competition: Setting an offer date often generates increased buyer competition for a property, which may result in more offers at higher prices. 
• Firm offers: With increased competition comes more attractive offers. For this reason, offer dates may result in offers with little to no contingencies. For example, to make their offers stand out, buyers may be willing to waive home inspection or appraisal contingencies. Firm offers are usually preferred by sellers as it makes for a less complicated and faster selling process.
• The seller has more control over the timeline of the sale: By setting an offer date, the seller has control over when the home hits the market and when offers will be reviewed. Reviewing all offers on a set date and time allows them to focus on other matters, such as packing and moving, in the interim. 
• The seller is not obligated to stick with the offer date: A major perk of the offer review date is that the seller still has the right to change their mind and accept an early offer (should one come in that is enticing). Plus, early offers tend to be pretty lucrative (read: well over asking) as bully buyers know it’ll take an above-average offer to convince the seller to abandon all other offers.

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The cons of offer dates

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• There is no guarantee of multiple offers: Although you may increase your odds of getting multiple offers by setting an offer date, there is no guarantee of this. In fact, you aren’t even guaranteed to receive a single offer. Even in a hot market, if the home isn’t priced to sell or is marketed incorrectly, a seller might discover no offers on the offer date. 
• Buyers may get tired of offer dates: Some buyers might feel manipulated by offer dates, especially if they have tried and failed to purchase a home multiple times before (even after waiving basic contingencies like the home inspection). The result? You might receive fewer offers as buyers who would have otherwise submitted an offer are turned off by the offer review date. 
• If other listings have the same offer date, you may receive fewer offers: If other homes in your neighbourhood (especially those similar to yours) have the same offer review date as you, it could force buyers to choose between the homes, as they can only bid on one. This could result in far fewer offers on your home. While such a blunder can be easily avoided, sellers and their REALTORS® must take the time to research any offer review dates of similar homes in the area.
• Some buyers may not have the patience to wait until the offer review date: In a hot market with lots of competition, some buyers might be turned off by the prospect of having to wait a week to have their offer reviewed. Instead, they may choose to submit an offer on a house where the seller is reviewing offers upon receipt. 
• If the seller accepts an early offer, they risk upsetting buyers and their REALTORS®: Accepting an offer early, while the right of the seller, is not good practice. At a minimum, the seller’s REALTOR® should contact all buyers who have shown interest in the home to inform them that the seller is considering accepting an early offer. The purpose of this is to give other buyers the chance to submit an offer of their own. Again, the seller is under no obligation to do this, but it is a sign of respect. Accepting a bully offer without notifying prospective clients can upset a whole pool of buyers and their REALTORS®.

Tips on How to Navigate Offer Dates

Make navigating the offer review date process easier by following the expert tips below. 

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Before deciding on an offer review date, consider whether it’s a hot seller’s market

Offer review dates are most common in seller’s markets. In hot real estate markets, they offer benefits to both buyers and sellers. For sellers, they can drive competition and allow them more time to carefully evaluate all offers, and for buyers, it gives them more time to visit homes and craft effective offer strategies. 

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Remember that the offer review date is not a hard date

As mentioned above, the offer review date is not set in stone. Even if a seller chooses to set an offer date, it doesn’t mean they cannot accept an early offer. If an early offer comes in that exceeds your expectations and meets your home sale goals, you have the right to accept it and forgo the offer date completely. 

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Choose the right date

Deciding to set an offer review date is only the first step. From there, you need to decide what day and time are right for you. Remember, most offer dates are between five and seven days from the listing date. This time frame should always include a weekend to give more buyers the chance to visit your home. Further, you must research other homes for sale nearby and make sure your offer review date does not conflict with any others. In addition, if it’s a seller’s market, you can likely expect to receive multiple offers. Make sure your review date works with your schedule (that is, that you will have enough time to dedicate to reviewing offers on the date you set). 

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Remember your goals for the home sale 

Anytime you review an offer, but especially if you’re reviewing many at once, make sure to keep your home sale goals at the front of your mind. Think carefully about what your ideal offer looks like before the offer review date and discuss these expectations with your REALTOR®. 

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Set realistic expectations about other buyers

Having realistic expectations surrounding the offer review date is important. Just because offer dates tend to drive competition doesn’t mean that you are guaranteed multiple offers. Receiving multiple offers ultimately depends on many factors, like the current market conditions and the listing price. Be sure to speak with a real estate professional about what to expect on the offer date. 

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Prepare to negotiate 

Just because you set an offer review date and (maybe) received multiple offers, doesn’t mean the perfect offer will fall into your lap. Sellers should still be prepared to negotiate with buyers to get what they want. Again, having a REALTOR® by your side who is an expert in negotiation will come in handy.