Toronto Home Buyers and Bidding Wars
Here’s an interesting article from The Globe and Mail, that speaks of human nature and real estate. Globe and Mail – February 25, 2016
Several points I’ve gathered from it, and a few of my own thrown in:
- Timing can be strange – a home can sit on the market for some time without any offers, when an offer is finally received, multiple others follow
- For a house on the market that’s attracting great interest (due to it’s ideal location, size condition, etc…) the Buyer’s Agent often ask to ‘keep posted’, while the Buyers consider if they will submit an offer. If there are no other offers, Buyers wonder if it’s 1. good luck (no competition), or 2. something wrong with the house? Once an offer is registered (officially signed and noted) by another Buyer, the Buyers then want to give their offer
- I find this an interesting phenomenon that I see all the time: Buyers like a property enough to consider an offer, but want to ‘wait’ and watch what happens. When another Buyer comes into the picture, it motivates them to submit their offer – immediately creating a ‘multiple offer/bidding’ situation
- It’s often expected/assumed that the more offers to compete with, the higher the final sales price – there’s always exceptions, whether there’s 2 or 25 offers
- When listing a house for sale, Owners should give it the best effort from the beginning:
- price it right for the market, determined with the help of their Realtor, not an ’emotionally-attached to the house’ price
- make the required small repairs so the house will present at it’s best
- Having to re-list a house a second time could lead to reduced sales price
Selling your home can be a good experience, especially if it receives a great price with the least stress/hassle to you. For Buyers, bidding wars are not ideal but it’s possible to reduce the stress involved with some preparations and new perspectives.
If you would like some guidance with a home sale or purchase, or other real estate situation, please contact us anytime. Christine Ng, Broker firstname.lastname@example.org Royal Lepage Signature Realty.
Photo from the Globe and Mail