I stopped to fill up my car at a gas station recently. While I waited for the salesperson to process my bill, I asked her how cigarette sales were going. I’m not a smoker but was curious to see how the new law banning the display of cigarettes in Ontario had affected sales. Without a moment’s hesitation she said, “Actually, sales have doubled.”
This caught me by surprise and I inquired further, asking her if she knew why this was so. She replied, “It seems that people want what they cannot have.”
Her answer reminded me of a similar situation that affects home buyers in some high-demand areas in Toronto. Often, I encounter prospective buyers who decide not to proceed with a purchase simply because no one else has made an offer.
What many of these future homeowners are in essence saying is, “I will buy that house when I know somebody else wants to buy it too.” Of course, this is not what they say out loud, but it is exactly what their actions say.
How to Win the New and Revived Home Bidding Wars in Toronto
If you find yourself in a home bidding war in Toronto, don’t panic. You can win at this game. Following are some tips for doing so.
Offer High:
Make the highest offer you can afford. This is no time to try and low-ball.
Get Your Documentation in Order: This will help to ensure a speedy sale, which can be the difference between you and another home bidder.
Do not include unnecessary conditions:
Make it as easy as possible for the seller to say yes. Note: Don’t waive a home inspection, which will be discussed in just a bit. You want to make your offer attractive, but not at the expense of doing your due diligence as a home buyer.
If at all possible have the home inspection done before you make an offer. The only downside is the small cost of your inspection in the event your offer is not accepted.
The bottom line is, if the home you are considering buying meets most of your criteria regarding location, price and amenities in Toronto, then don’t wait for another buyer to outbid you. What this means is that if the condition of the home is unsatisfactory, you can still walk away and get your deposit money back.
Success in buying a great home in prime Toronto neighbourhoods comes to those who act independently — and who brave home bidding wars secure in the knowledge that they haven’t followed the crowd.
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