Mutiple Offers & Bidding Wars

By: Michelle Makos

Mutiple Offers & Bidding Wars

Tags: Mutiple Offers, Bidding Wars, First Time Home Buyers

It has been a while since I reached out but figured now is as good as time as any !!  The market is getting crazy again and if you are a First Time Buyer you need to understand.  Homes are being sold well above asking.  The list price is NOT the price they are going to sell for.  Many times, especially right now, the Listing Agents are holding offers and creating massive bidding wars.  We are seeing it daily and if you are signed up for StreetMatch you will see now start to see the SOLD prices are above asking.

So here is what Buyers need to understand;  I am not going to pull punches here so if you want to read about "any offer is acceptable" you may not want to continue reading.  IN THIS MARKET, if you seriously are not interested in the property and you are not even pre-approved , do not put in offer under asking full of conditions.  Do you know what you are doing?  You are making it harder for the people who are putting in market value offers in multiples to win at a reasonable price because Listing Agents can use these "crappy" offers and keep messaging Buyer Agents saying - another offer received.  We don't know when we are representing Buyers what the other offers are so Buyers get perplexed and frustrated and bump up their price because they are tired of losing. So please work with a Realtor® who is well informed of the street prices and last sales that will guide you honestly.

It isn't always about winning ... it is about getting a home that is fair market value.  Yes -  sometimes you will pay a little more because it checks all the boxes and is in the perfect neighbourhood etc., but let's stay grounded here and go in as informed buyers.  I am seeing some crazy things.

One property 27 offers - $150K over asking price - Another one 6 offers - $60K over asking.  Speak to your Realtor® before you waste your time to see what the recent sales are and see if this home is priced for a "bidding explosion".   Then make a decision whether or not you are still interested and whether or not, if you were in a bidding situation, how much higher could you go to stay within your BOUNDARIES.  Don't be house poor.  Be house wise !!  '

Maybe you need to look in a lower price range so you can compete in multiple offers instead of looking at your top price and be disappointed when you don't win.

The market is ON FIRE !!!   Bank of Canada reduced rate yesterday which will also fuel this even more.  If you are thinking of  making a move, use a professional and get the guidance you need.  Selling is easy right now.  Buying is a challenge.  To learn more or if you have any questions, I am always a phone call, text or email away !!!  I always enjoy speaking to you.  I have a great Mortgage Broker and Lawyer that will help make our journey smooth and informed. 

That's your market minute :)   
Cheers
Michelle