Author: Dale Biason, Salesperson, Royal LePage Signature Realty and Director on the Rockwood Homeowners' Association
It is definitely a seller’s market. With very few homes on the market, properties are being sold quickly as buyer’s rush to secure a purchase in a very competitive environment.
There are so few listings that the majority of properties that come on the market are being auctioned to the highest bidder in what real estate agents refer to as “A Call For Offers.”
A call works like this: when the listing is posted, it includes a date that the seller will review any offers. On the date that the offer is reviewed, the seller hopes that there will be more than one offer to initiate a bidding war. With few listings, this is almost a guaranteed. This being said, sometimes homes do not draw many offers or any at all as the buyers are not prepared to pay more than the asking prices. In other words, the price is already at or above market value. The trick is that the listing price needs to be less than the anticipated purchase price or market value to create more interest and therefore more offers.
For the seller who is eager to take an offer, they may also accept a Bully offer prior to the offer date. In this case, the Seller advises in advance that he may consider a pre-emptive offer, otherwise, all agents who have shown or booked an appointment must be advised that the offer date has changed.
In the case of multiple offers, a seller can expect a firm offer, without conditions on financing or inspection, if a pre-sale inspection report for is provided to prospective buyers to review before submitting an offer.
According to the Toronto Real Estate Board, there were only 977 active listings in all of Peel this March, which was down 10 percent from the 1085 at the same time last year. The number of days on the market also declined from 24 to 14. Not surprisingly, the ask to sell ratio has increased from 98 percent to 100.2 percent and March is just the start of the spring selling season.
This year, we are seeing offers come in more than 10 percent over asking price with as many as 30 buyers competing for the same property. The problem with this lop sided market is that there is no inventory. Lack of available properties is creating a frenzy for those looking to move.
Generally, agents advise their clients to sell before they buy. In this market, a seller might be better advised to buy first, unless their expectations for price are unreasonable or if there are other issues which might prevent a quick sale.
It is definitely a seller’s market. With very few homes on the market, properties are being sold quickly as buyer’s rush to secure a purchase in a very competitive environment.
There are so few listings that the majority of properties that come on the market are being auctioned to the highest bidder in what real estate agents refer to as “A Call For Offers.”
A call works like this: when the listing is posted, it includes a date that the seller will review any offers. On the date that the offer is reviewed, the seller hopes that there will be more than one offer to initiate a bidding war. With few listings, this is almost a guaranteed. This being said, sometimes homes do not draw many offers or any at all as the buyers are not prepared to pay more than the asking prices. In other words, the price is already at or above market value. The trick is that the listing price needs to be less than the anticipated purchase price or market value to create more interest and therefore more offers.
For the seller who is eager to take an offer, they may also accept a Bully offer prior to the offer date. In this case, the Seller advises in advance that he may consider a pre-emptive offer, otherwise, all agents who have shown or booked an appointment must be advised that the offer date has changed.
In the case of multiple offers, a seller can expect a firm offer, without conditions on financing or inspection, if a pre-sale inspection report for is provided to prospective buyers to review before submitting an offer.
According to the Toronto Real Estate Board, there were only 977 active listings in all of Peel this March, which was down 10 percent from the 1085 at the same time last year. The number of days on the market also declined from 24 to 14. Not surprisingly, the ask to sell ratio has increased from 98 percent to 100.2 percent and March is just the start of the spring selling season.
This year, we are seeing offers come in more than 10 percent over asking price with as many as 30 buyers competing for the same property. The problem with this lop sided market is that there is no inventory. Lack of available properties is creating a frenzy for those looking to move.
Generally, agents advise their clients to sell before they buy. In this market, a seller might be better advised to buy first, unless their expectations for price are unreasonable or if there are other issues which might prevent a quick sale.
This article was originally published in the Summer 2016 issue of the Rockwood Homeowners' Association quarterly newsletter, The Rockwood Times.
