Location1st.ca Toronto Real Estate Blog

Here is some background information by using an example ... buyers like a home that has a delayed bidding war date (that is you have to wait till a set date before submitting an Offer).  The asking price is $589,000 and the buyer's budget is $630,000. What should we do? First of all, I need to do a detailed CMA (comparative market analysis) to determine the value of the home.  In this case, my CMA indicates the home is worth $620,000. On the bidding war night, there are 3 competing offers (not including ours).  From my experience, each offer increases the final SOLD price of the home.  In this case, I know that each additional offer is worth $10,000***. So if there are 4 offers, the final selling price will be approximately $630,000 ($589,000 plus 4 x 10,000).   My clients don't want to pay $630,000, but want to try and submit an Offer at $600,000. What happens?  The home sells for $631,000 and the clients are disappointed, but are ready to...

When I meet buyers, I often hear them say they don't want to see a home if there is a "bidding war" (aka multiple offers) First of all, what is a "bidding war ... in the Greater Toronto Area (GTA), one marketing strategy is to delay reviewing offers until a future date in time. For instance, a home comes on the market, you see the home today and like it and want to submit an Offer to buy it, but the home has a delayed offer strategy and is not reviewing offers until one week later. The purpose of this strategy is create a bidding war. The Seller wants multiple buyers to bid on the home at the same time. Whether or not, the successful buyer is overpaying for a home, really depends on the initial asking price. For instance, let's say the home above is asking $599,000 and is reviewing offers in one week. On the Offer review date, the Sellers sells the home for $650,000. Did the buyers overpay? Based on the asking price, the answer is yes, but the right question...