Some real estate agents may recommend that people in Ontario sell their homes in a bidding war. The common thought is that bidding wars bring the highest price for real estate because the home is only available to potential buyers for a limited amount of time, and competition drives the price up quickly. However, some consumer advocates urge sellers to explore all of their options before settling for bidding wars which don’t always get the best price for a home.
One real estate agent discovered that sellers who market their homes the traditional way often have more success in making a sale. They also tend to get a higher price for their homes than those who use bidding wars. While some think that bidding wars may bring record prices for homes, it is important to remember that appraisals keep the price of any home from becoming too high for financing to be approved
Bidding wars limit the amount of time interested buyers can examine and consider the house. This scenario immediately reduces the number of potential buyers, any of whom may be out of town or considering other properties at the moment. In addition, many people do not enjoy the stress of a bidding war and prefer to avoid the unpleasant experience of wasting hours waiting, only to learn that someone else won the war.
When people in Ontario are ready to sell their homes, they usually have many questions. Whether they chose to try a bidding war or to list their homes in the traditional way, the advice of a lawyer may become invaluable. A real estate lawyer will take care of the documentation, filing and transfers necessary, as well as keeping the seller informed and aware at every step of the way to make the process as smooth and stress-free as possible.
Source: The Huffington Post, “Why You Shouldn’t Sell Your House In A Bidding War“, Nathan Dautovich, Accessed on Dec. 22, 2016