In the Toronto Real Estate market we’ve had bidding wars for over 10 years now. Buyers often have to make offers on a few homes before they actually get one. Hard to believe isn’t it?
The bulk of my real estate experience is in the Toronto Real Estate market, and as a member of TREB, CREA, OREA, and RECO there are rules that I know and that all local real estate agents must follow. The rules may be different in your market, but in Toronto there are ways to make offers before the offer date…
Stimulating a bidding war and making bully offers are both complex tasks. Here’s a quick overview of both, there’s a lot more than what’s in this article to understand. Before using any of the strategies below make sure that you are using an experienced Realtor. If you need one, call me at 416-671-5775.
The overall strategy for stimulating a bidding war is to price a property 2-5% lower than what the Market Price should be, do a ton of marketing (including an open house), and pick a date and time when offers will be reviewed. It doesn’t mean that there will be a bidding war, it really depends on who is looking, what their budget is, and what they are looking for. I’ve seen plenty of listings adjusted after the offer date has passed and they eventually sell, but not in a bidding war.
If the Seller won’t look at an offer before the published offer date, you can still make one and register it with the listing agent’s brokerage. In Toronto, they have to tell everyone who makes an offer how many offers are registered on the property. Since many buyers don’t want to be involved in bidding wars, registering one early may stop a few people from even making an offer. This will reduce the number of offers on the offer date and hopefully you’ll be the only one!
If the Seller will accept an offer before the offer date, make a Bully Offer. They are typically above the asking price and have no conditions. This is not for the faint of heart. It’s quite risky, but in some cases it might just be the best thing for you.
If you’d like to discuss this more, comment below or become my client.
If you are thinking of buying or selling Toronto Real Estate, just call me at 416-671-5775