How Do Bidding Wars Work In Toronto?
Wednesday May 25th, 2022
Are you ready to buy a home but you are worried about the multiple offer process? I'm Meegan Dennie, a realtor with Bosley Real Estate, in the very competitive market of Toronto and In this video I am going to explain to you how the multiple offer process works so you can relax and focus on selecting the properties you want to see!
- Multiple Offers a.k.a bidding wars, can happen at any time and on any property that is listed for sale or for lease. I’ve seen properties that have been listed for sale or rent for 3 or 4 weeks with no recent offers and all of a sudden, there are 2 offers placed within a 24 hour period.
- Multiple offers will likely happen more often than not when supply is low and demand is high.
- They can also happen quite frequently if there is something special about a property. For example, it has a great view of the lake or maybe it has a large terrace, or it’s the penthouse.. Something that would appeal to the masses.
- You can also try to create a multiple offer situation if you list a property for sale or lease at a lower price than market value. This is the most common strategy used for sellers in the greater Toronto area and is usually accompanied by an offer date.
- When there is an offer date, the listing agent usually asks for the offers by a specific time on that date and they will present all offers to the owners
- We are ONLY allowed to know how many offers have been registered
- We are not allowed to know the contents and details of any other offers so that no one has an advantage. They call this a “level playing field”
- Usually you as a buyer will submit your best offer. That means your highest price.
- You will submit your Best offer and if there is a clear winner, the listing agent will work with that offer. They may negotiate further or just accept it.
- There are cases where 2 or more of the offers may be close in value and the listing agent will call those buyers agents back and ask if the buyers want to improve their offer.
- The HARDEST part about this all is that we STILL have no idea what the other offer looks like and how close or far apart we are from the others. We are going in blind.
- If you really want the house, often times, the buyer will find a way to improve their offer in some way. Usually they add extra money and or reduce conditions, and or change the closing date. Whatever makes your offer more favourable or appealing.
- I always try to help my clients decide by presenting a question like, If you lost out on this property to the other offer by five or ten thousand more dollars, will you be ok with that?
- The point is, if someone lost out to another offer by $2000, that would likely sting a bit. BELIEVE ME, It’s happened!!!
- I try to get you to think about what the MAX is you want to pay for this property and what won;t sting too bad the next day when you see the sold price, if you did not get it. But also, I don't want you to regret paying that extra five or ten thousand either. It’s a balance.
Watch my next video for all details about what a successful offer looks like in a competitive market! Watch my next video called: How To Compete In A Sellers Market: Successful Offer for more details. There are some really great tips that can help you get that house!
Don’t hesitate to call me for anything real estate related In Toronto or the GTA.