Winning in a Multiple Offer Toronto

When making a multiple offer on a property we have a form available to Realtors, for the seller to sign, that they have actually seen your offer to purchase.  You will know for certain your offer has been presented.



This may not necessarily get you a sign back, or counter offer, but at least will know for sure that they have been presented with your offer.

I recommend making your offer in person, not by fax or email,  I expect you to be standing nearby, waiting anxiously and including a Letter of Capacity from your bank, that you have the funds available to close on this purchase.

This will make a big difference when compared to other people who are all conditional upon financing and have other obstacles to overcome, like the sale of a property. You can firmly give a date for moving in.

I would like to work with you to make it simple to get your next home.

Give me a call 647 218 2414

Manufacturing Multiple Offer Senarios

Is it possible to create a situation guaranteed to create a multiple offer Bidding War?

The Toronto real estate market continues to inflame the talking heads screaming about the "end of times" and collapsing values.

Interest Rates will rise but are flat.  Rates have move from 2.5% Variables to Buyers selecting 3.15% five year terms. Has inventory [the number of detached homes in central Toronto] increased? New Buyers arrive every month both from job migration in Canada and those new to Canada. All this adds to the competitive mix.

When pricing a house we take into consideration; proximity to the subject property [your house] How recently the sale occurred, How many improvements and upgrades had been made to that home and ultimately demand for that property in Bloor west, Roncesvalles Village or will you live west and drive from the Kingsway or Markland Wood. See Comparable Market Evaluation.  Access to transit and community have moved up in importance compared to commuting times, gasoline prices and traffic.

So, If we price this property within 2% of where we expect the offers to conclude, and we select a price that is a rounded number [online shoppers are looking for $600 to $650; not $628 to $647,888.]  Do this and you have missed an entire buyer category that may have looked at you but you did not round up or down to catch both the upper and lower limits.  

Some are creating hype in the neighbourhood with POCKET LISTINGS, signs that tease with Coming Soon. This is all to attraction more drive by traffic before the event occurs. Now lets hold offers for 3 or four days prior to examining all the Bidders.  What if Others are making Bully Offers;  take me now. You may not get it later. 

Are the Buyers falling for this?  Or Do you as an informed consumer say; "That house is priced $100,000 below the last sale. I know there will be a bidding war and I will not go that far past their expectation" . I have also had and advocate the "There will be another house equally suitable."  

Some SELLERS have an expectation that sealed bids will somehow appear in their mailbox at 10:00 PM at night.  Drivers (REALTORS) will stealthily approach and drop their 11 page document with a Confirmation of Representation and You have seen my Offer and rejected it page. SERIOUSLY. Some doors no longer have a mail slot. This is simply not happening. Agents call and Register their offer with the Listing Brokerage.  Offers are presented (usually in person) in the order of registration.  Enough copies are on hand for acceptance and signatures. 

The agent has a responsibility to present all offers to you. You have the option of Signing back, rejecting or accepting the offer. Sometimes you have good offers on the table and your agent sends them all away for a final round [to top up your best bid] and no one returns.  Sometimes the appointed offer time arrives and passes, unanswered.

Can you create a Bidding War?   Although there may be multiple potential buyers for that property, each house is unique and may just not create that multiple offer scenario.  You are better off pricing the home properly for sale, than undervaluing your largest asset hoping for enthusiastic Buyers.  Most of all remember, Your home must pass inspection and appraisal post the sale and prior to closing.

Lets Talk 

Holy Sh**! I would have paid that

When you are in a multiple offer situation and you are unclear of your direction;  here is some wonderful advice I recently absorbed.    

• Is you offer so good that the Buyer's will Say   Holy Sh**!
• Once you find out how much the house sold for, Is your response "Holy Sh**! I would have paid that!

In an effort to Aide transparency  RECO is amending and adding clauses to REBBA

 On April 18, 2013, the Minister of Consumer Services proposed new legislative amendments to the Real Estate and Business Brokers Act, 2002 (REBBA) through the Stronger Protection for Ontario Consumers Act. This proposed legislation would apply new rules for the real estate sector that would affect both REALTORS® and consumers.The proposed legislation consist of:

• Requiring real estate salespeople and brokers acting on behalf of a buyer to only present offers in writing

• Requiring the brokerage acting for the seller to retain copies of all written offers received, providing clarity for buyers and sellers

• Allowing home sellers and buyers to negotiate a combination of fees and commissions with a real estate professional, tailoring the cost with the services consumers want

For more information regarding the proposed amendments, please visit: http://news.ontario.ca/mcs/en/2013/04/strengthening-protection-for-home-buyers-and-sellers.html 

In a recent Multiple offer situation;  once we selected the final bid, I had  copies of the other offers to display to the BIDDER. There is nothing wrong with honesty and disclosure.

What do you think?

Will you write offers differently?