Is the Toronto real estate market bullying you to buy your home!
While bullying on the schoolyard is frowned upon and rejected as bad behaviour, some think “bullying” in the real estate industry might be the only way to find yourself a home in popular urban areas like Toronto and Vancouver.
So what is a “bully offer”? For starters, bully offers are common in a sellers market when the demand for homes in a particular area is high. Essentially, a pre-emptive order. Since the demand for homes is so high, clients are forced even before the house is officially listed.
On the other hand, bully offers excite sellers because the buyers offer a premium to the proposed selling price. Although it might not be the highest price the sellers can eventually obtain, sellers may agree to buy the home out of surprise. In order to take advantage of bully offers, buyers should remember to keep their calm and keep their offers to themselves until the end. Bullies who are quick will be most successful. Buyers can also make unconditional offers.
As the demand for Toronto and Vancouver homes increases, these unconventional bully offers are becoming more and more common. However, not everyone is pleased. Mike Moffat of CBC reports that bully offers are confusing buyers and making housing even more unaffordable. He believes that there will be, “both political and economic problems if price out an entire generation of young families from ever owning a home.” Even some areas in rural
Ontario are feeling the pressure with these bully offers. Last year, the Ontario Real Estate Association called on the province to ban the tactic altogether.
So can we end this realestate bullying? Probably not until the market naturally turns bearish or if a long-term trend of families exiting city centres occurs.
However, while you may not like bully offers, you should be aware of this tactic as it is becoming a prevalent fixture of Canada’s real estate process.