This is straight from the HUD playbook. When Housing and Urban Development lists one of their homes for sale on the MLS, they have a requirement that says they will not review or accept any offers until the 10th day. The idea is to give as many buyers an opportunity to not only see it but to prepare an offer before the 10th day. If they don’t have any offers then they go day-to-day.
Well, I’ve now seen several resale and short sale listings in the Phoenix MLS that are using this very same tactic. It’s a good idea if the situation is correct. For example, if the list price is below the Fair Market Value (or CMA or BPO) than you have a situation where you can have multiple offers, driving the price up in a 2003-style bidding war. You as the seller can use the tactic to your advantage to get a higher price. As the buyer you will want to keep your emotional distance from the property since there is a chance you will be out bid (again get a CMA or BPO).