When housing is scarce and certain neighbourhoods are highly sought after, receiving multiple offers (when a home has more than one registered offer) on your Toronto home is quite common.
With the popularity of condos being built in Toronto, detached and semi-detached houses are becoming more sought after because of their scarcity in the Toronto core neighbourhoods. The price and availability of houses for sale in the Toronto real estate market indicates an increasing seller's market.
In a “seller's market”, homeowners may price their real estate property below market value to attract multiple offers. The hope is that prospective buyers will enter into a bidding war and the seller will get to choose which offer to accept, sometimes receiving above asking price. Case in point: the example of the Willowdale bungalow which sold in March 2012 for $1,180,800 - $421,800 over the asking price.
Multiple offers in Toronto real estate resulting in competitive bidding wars are becoming quite commonplace and can be very tiring for both the seller and the buyer.
When you are looking to win a bidding war in a seller's market, it is imperative you try to look the most appealing to the buyer. It is wrong to think that the highest bidder always wins. There are many factors to consider; more appealing closing dates, lack of conditions, deposit size/availability and other terms can be more appealing to the seller. Having minimal or no conditions on the sale is often what can win you the home. It's also up to the talent of your Toronto Real Estate Agent when the offer gets put on the table and how great a presenter and negotiator your agent is.
When buyers see a home listed below what the market calls for, it often attracts eager potential buyers who know the home is priced undervalue. Buyers are more apt to offering more than asking when they know the Toronto real estate property was priced fair or below market value to begin with.
People who are selling their real estate in Toronto have dealt with multiple offers by advertising that they will accept offers on a certain date. This gives prospective buyers a chance to put together an offer and allows the seller a specific date – if they choose to accept – for the sale.
Multiple offer situations are stressful to both the seller and the buyer, so it is good to know what you are getting yourself into. With my expertise, negotiating skills and experience I can provide advice to make the sale or purchase of your Toronto home as stress-free as possible.
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