With the recent uprising trend in bidding wars, it is surprising that tougher rules have not been introduced to regulate the bidding process. A recent surge in cases being called in to the Real Estate Council of Ontario shows that both those who have won and lost bidding wars have fallen victim to unfair processes.
One Toronto agent shared her story of how her clients paid $90,000 over asking price on a house with no rival bids. Prior to the offer presentation, realtor Josie Stern was told that there were three interested bidders, only to find shortly after that her clients’ bid was the winning bid – no late nights of bids or counter bids. As it turns out, her clients were the only interested bidders and they had fallen victim to an unfair bidding process. Although Josie eventually convinced to lower the sales price to just $45,000 over asking price, be forewarned that there may be a potential for loopholes in the bidding process.
The main takeaway is this – always ask the listing agent to provide you with a list of all brokers and sales representatives’ names making offers on a particular property before the offer presentation begins.
[To see full article published on Moneyville.ca on July 4, 2012: Click Here]