There’ve been a lot of articles on blogs, in the news (Toronto Star, Wall Street Journal, and any number of Blogs) about the homes on Perth and Galley that recently sold for much a lot than their original list price.
Lots of opinions about them too.
I have a strong opinion, but I’m here to make sure that you, as a buyer, don’t fall into the same trap that the “reported” 60+ other potential buyers did when trying to buy these properties in the hot west end of Toronto.
How you ask? Well, there are a number of things that you can do. Here are a few of the best ones…
- Use a local agent who knows what the house is probably worth
- Review a list of comparable properties that have sold
- Decide things ahead of time, so you’re not caught up in the moment
- Know the number of offers at the time of your offer presentation
- Know your financial limits!!! We all have them.
- Ask your real estate salesperson for their opinion during the process
- There are many others…
As a seller, if you’re using this tactic, you don’t want to list your home too far below what you think the market price is either. According to some reports there were over 400 people through the open houses for these properties and they had over 100 showings with agents.
I’m not saying that this will happen to you, but here’s why you should be concerned.
- You’re life will basically be in chaos while your home is listed (back to back showings)
- You may have to move out while your home is for sale (to allow for the showings)
- It’ll be hard to keep your home clean and staged for selling,
- It’ll also be hard to keep items in your home safe,
- There are many other reasons…
The whole “Stimulating a Bidding War” is a lot more than just under pricing a property, and as someone who has used the strategy I can say that it often works. It’s not a guarantee, but under pricing by 2-3% and using the rest of the strategy has been a solid tactic that’s been used by real estate salespeople for more than a decade in the west end.