There are a couple of words in the real estate industry that are gaining traction in this current seller’s real estate market. These two words are quickly becoming words that can cause panic, frustration and oftentimes, heartbreak for many. Can you guess what the words are before I state them?  That is correct- “Bidding War”

What exactly is a bidding war?  

We are here to educate you and also provide some guidance enabling YOU, our client, to make informed and educated decisions. 

Before we get into exactly what a bidding war is, understanding why they often happen is imperative. The real estate market in our area of Port Perry and the southern portion of Kawartha Lakes is currently a seller’s market. This occurs when the demand for homes outnumbers the supply of homes available for sale. The number of buyers wanting to purchase property outnumbers the availability of suitable homes available for sale, pushing potential buyers to compete with one another to secure their purchase. This event is called a bidding war. 

We have been having numerous in depth conversations with both our sellers and buyers educating, counselling, consoling and just listening. Seller’s can only hope to receive multiple offers on their property. But from a buyer’s perspective it can be an extremely emotional, draining and frustrating experience. 

Part of our role as Realtors is to approach each situation (purchase or sale) as objectively as possible. This includes the process of negotiating and/or “bidding” for a property. We believe in properly educating our clients before they enter into the market. In this complex real estate market there are a number of factors to consider. 

As a buyer, 

Know Your Budget and Stick To It: Knowing how much you can spend on a home is critical. Working hand in hand with your lender to know your pre-approval and consulting with them each step of the way is vital in today’s environment. 

Build Your Strategy: With the help of our team, determine what factors are important both to you and in securing a home. In a seller’s market having few or no conditions in your offer can work in your favour but being diligent to make sure your questions are answered prior to submitting an offer is needed. Flexibility of closing date or the list of inclusions can sometimes help secure you the home. Have a team of experts in your corner: home inspector, lender, solicitor, to ensure that all questions and concerns are alleviated prior to submitting an offer to purchase.

Remember, even in a seller’s market, the perfect home for you is out there, it just may take some time and a whole lot of patience.

As a seller, 

Know Where You Are Moving: As a seller, you are also potentially turning into a buyer and the above tips apply. Know where you are moving to prior to putting your house on the market (if you are able). Our experience and knowledgeable  team can help you in determining which path is right for you.This will allow for ease of mind moving forward. If you are planning on renting, secure a rental. Rental accommodations are slim in our area and are often going above market rents. 

Multiple Offers Are Not Guaranteed: While in today’s environment they are common, we must all remember the definition of Market Value. 

Market Value is defined as the highest price paid in terms of money that a property will bring if exposed for sale on the open market by a willing seller, allowing a reasonable time to find a willing buyer, both having full knowledge of all the uses and purposes for which the property is adapted and for which it is capable of being used, neither party acting under compulsion and both exercising intelligent judgement.

Repair/Replace or Disclose: With the increase of unconditional offers, repairing/replacing or disclosing any items of potential concern helps to alleviate issues prior to closing or after. This is no different from any other time you sell- but in today’s market, with buyers often having limited time inside your home, it is even more crucial. 

Our team will strategize with you to determine the best customized plan to ultimately meet your goals and get you SOLD.

Today’s real estate landscape is constantly changing. Watching and understanding the daily, weekly and monthly statistics is vital to understanding the market and our housing environment. Let a member of  Puckrin & Latreille Real Estate Team educate and help you make informed decisions to Live, Play and Invest today and in the future.

published on February 18, 2021

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