Bidding Wars are still a reality in the Hot Toronto Real Estate Market, and one of the most common questions that I get from my buyer clients is – How do I know that there aren’t any phantom offers?
The reality is that they may never know and one of the main reasons is that each individual offer is a binding legal contract and confidential. I am of the opinion that most real estate agents out there are ethical and follow the rules. Unfortunately, that answer doesn’t always give my clients the confidence that they are looking for.
Luckily there’s been a recent change to the rules that we all have to follow. All listing agents must now keep copies of all the offers that are registered on a property. What this means to potential buyers, is that there will be evidence of the offers, and when challenged through the legal system, they may be able to know that all the offers were “real”.
Here are some ways that I make sure that there aren’t any phantom offers…
- I work in a great brokerage – we’ve got an offer conveyance procedure, and it is in every listing package.
- If I am the listing agent, and I have a client who’d like to buy the property I always refer the buyer client to another agent. We can represent both the seller and a buyer, but I prefer to do it this way to avoid any confusion.
- I always check if the listing agent has their own offer
- I always find out how many other offers there are, and often ask which brokerages they are from
All of things add up to “steps in the right direction”. Industry wide changes are difficult and take a lot of time to implement, but I think that this most recent change should help give buyers and sellers more confidence that phantom offers rarely (if ever) exist…
If you are looking to buy or sell property in the Toronto Real Estate Market, just pick up the phone and give me a call at 416-671-5775