How to Sell Your Condo and Buy a House: BIDDING WARS
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You may or may not have experienced a bidding war when you bought your condo, however, when you are shopping for a house in Toronto, bidding wars are a reality that just about everyone has to deal with.
First of all, bidding wars are extremely common in Torontoâ€™s best neighbourhoods. Even though people like to think that bidding wars are a relatively new phenomenon in Toronto, the reality is they have been happening for decades. Competition and real estate go hand in hand in Toronto.
Secondly, there are no set rules of how a bidding war is structured. The only thing you as a potential buyer will know is how many offers you are bidding against. This makes it absolutely crucial to have an experienced buyers agent on your side to guide you through the process.
My first expert tip for surviving a bidding war is to collect as much information before you put in an offer as possible. Find out exactly how many offers there are, how many other comparable properties are on the market, and know both the market value of the house is, and also know what the value of the house is to you.
My second tip is to always come with your strongest offer up front. Many buyers think that they will always be given a second chance to improve their offer, so they hold back some of their cards, only to be disappointed when a seller elects to go with someone elseâ€™s offer. Never assume that there will be a second round of bidding.
Recently I had a couple of clients who were putting an offer in on a house against 5 other offers. After the first round of bidding they narrowed it down to my clients and one other buyer. My clients ended up not getting the house because they were out-bid by around $20K.
Just a week later another house came up on the market around the corner from that house and they ended up being the only offer that came in on the house. So they got a very similar house for about $80K less than what the previous house sold for!
The moral of the story is be patient and you will find the right property!
I hope you learned something about Â bidding wars in real estate today. Check out my website or contact me for more information.