Comments on: Bidding Wars – An Easy Fix

By: David Smeriglio

David Smeriglio — Sat, 29 Mar 2014 10:38:25 +0000

Boris,

The feeling of these article suggests that Realtors council buyers into overpaying and this is in part allowed because historical values are not openly available to the consumer. I strongly disagree with this. The role of the Realtor is to council their client exactly what they are purchasing, at what potential price based on the availability of inventory, relative condition of the home, and other market factors which contribute to pricing at that moment in time. The buyer, based on their financial situation, and based on their circumstances and experience decide what to do with that professional information.

Buyers should be signing a Buyer Agency Agreement. This document protects them against unscrupulous agents because it obliges the Realtor to behave in a manner set forth under the agency and representation lawful requirements of of the Real Estate and Business Brokers Act. It also affords them protection under the agents mandatory errors and omissions insurance.

I doubt that an experienced agent who has built a business practicing Real Estate would jeopardize their careers and reputations by willfully lying about a particular home price; especially since the buyer can obtain this information if need be, albeit at a cost up here in Canada.

Realtors do not create ‘multiple offers’ , the market does. No agent like multiple offers and hope for them. I have seen overpriced houses sell in multiple offers and the final sale-price is far less than list despite multiple offers: When inventory is low, and the house has value, there are multiple offers no matter what the price.

The buyer should do their homework when choosing and agent. If CREA and OREA are guilty of anything, it is not raising the bar for minimum requirements for becoming an agent, thus flooding the market and opening itself up to unethical individuals practicing Real Estate. (my opinion) .

By: Don

Don — Sat, 29 Mar 2014 06:29:04 +0000

what better way to get fair market value in a sellers market than having your home on the market for a minimal set period of time prior to reviewing offers!!!

thats why it is called a “SELLERS MARKET”

I would call this effective marketing and compliment any realtor representing his seller using the strategy..

By: KarenB

KarenB — Fri, 28 Mar 2014 15:21:01 +0000

Boris
First of all, I want to say that I always enjoy your blogs.
Second…I am in Winnipeg. The bidding wars have been here for many years. Here in Winnipeg, we do not have enough inventory for our growing market. The majority of REALTORS are trying their best to make sure our clients are not paying more then the property is truly valued at in this market. They are listed at fair market value and still get bidded over and above expectations. WREA is also very protective over this behavior and has set very stern standards to try and protect the consumer. This anomaly is not driven by our Realtors and sellers greed but by the market itself. If they tried to have it on a first come first serve basis as in times of a more balanced market, then it would be an unfair advantage to someone who can get the offer from their Realtors desk to the listing Realtor fastest. WE would still have multiple offers trying to win a race of time instead of money. I believe that currently, in our market, this is the fairest way to have a home sold and purchased. Any advantage obtained by the seller is given up when they in turn are in the bidding situation for their purchase. Are there times when a consumer is overpaying ? Possibly? But we will only know the answer to that when our market becomes more balanced and these home are now being resold.
My opinion …