May 6, 2021 | Good to Know

bidding wars

Bidding Wars Continue To Drive Toronto Real Estate Prices Upwards

Toronto’s real estate market has been in multiple offers or, as the public often refers to them as “bidding wars.” Bidding wars are when more than one buyer is making an offer on a house or condo. Bidding wars are prevalent in downtown Toronto. This type of real estate market is also called a seller’s market – when the market favours the seller’s position. In other words, there are more buyers than there are sellers at any given point. The seller holds the cards or control as to what price they will accept from the buyers.

As much as bidding wars are commonplace more often than not in Toronto, there are no concerns for the buyer if they understand the process and have a fantastic real estate agent to guide them. We have some guidance for both sellers and buyers during a bidding war. Let’s get started.

Seller’s Guidance

Should you list low and generate multiple offers/bidding war, or should you list the property at what you think it’s worth? That seems to be a popular question in the office these days. There are many factors to take into consideration when referring to bidding wars. The location, the condition of the property, the price point, and most importantly, how many buyers are looking to buy in the near term? Getting the seller’s strategy correct is essential. Not all properties are positioned to sell in a bidding war or over the asking price.

When you look at new house listings coming out, at least eight out of 10 properties have an offer date. We see several pre-emptive offers or the less politically correct yet truthful term, “Bully offers,” on houses. Condos have fewer bully offers currently, yet that can change any given week due to the increasing demand for real estate in Toronto.

Toronto home sellers must consider their options when pricing their home. A professional real estate agent will guide them!

5 Tips For Selling A Toronto Condo

Buyer’s Guidance

Buying a house or condo in Toronto during a seller’s market can prove a challenge in managing stress and expectations. The best possible advice that we can provide is to work with a fantastic realtor who will give you the guidance that you need to hear. It may not be what you want to hear, but it’s going to help you win the property of your dreams in a bidding war. The best real estate agents can help position your offer to win despite the competitors and ensure that you purchase at the correct value, not overpaying needlessly! Multiple offers/bidding war is nothing to fear as long as you have the proper guidance from a seasoned professional realtor.

Looking To Buy

You will need to go in with the most amount of money you will pay for the condo or house you choose, and conditional offers will put you at a disadvantage. What’s worth noting from our experience in the Toronto real estate market is that a strong real estate agent will be an excellent communicator with you as a client and the agent representing the selling party. When a good communication dialogue is formed, it greatly increases your chance of success, and sometimes you can get the property for less than initially expected. Building connections is key in any business. We pride ourselves on this.

Selling or buying a property is an important decision that you shouldn’t take lightly. Working with a realtor who genuinely cares and looks out for their clients is essential. We are precisely this type of real estate agent. We seek to give our clients all the information they need to make the best decisions possible for themselves each step of the way. 

Let’s get started today!

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