{"id":1489,"date":"2022-04-05T17:09:56","date_gmt":"2022-04-05T17:09:56","guid":{"rendered":"https:\/\/dev.wahi.com\/wp\/?p=1489"},"modified":"2024-03-20T12:43:34","modified_gmt":"2024-03-20T12:43:34","slug":"real-estate-bidding-war","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/what-is-a-real-estate-bidding-war","title":{"rendered":"What is a Real Estate Bidding War?"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”55px||5px||false|false” global_colors_info=”{}” custom_margin__hover_enabled=”off|desktop”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”2rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”2.5rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||37px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||32px|||” global_colors_info=”{}”]
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<\/at-text>In today\u2019s hot real estate market bidding wars have become the norm, particularly in Canada\u2019s major cities. Find out what you can expect when multiple buyers compete for the same property and how to ensure you pay a fair price.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>[\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.18rem” custom_margin=”||6px|||” global_colors_info=”{}”]

By Christopher Brown | 5 minute read<\/p>[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width_tablet=”” width_phone=”100%” width_last_edited=”on|phone” max_width_tablet=”” max_width_phone=”100%” max_width_last_edited=”on|phone” custom_padding=”0px||0px||true|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_padding=”1px|||||” border_radii=”on|32px|32px|32px|32px” border_radii_tablet=”on|32px|32px|32px|32px” border_radii_phone=”on|0px|0px|0px|0px” border_radii_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”49px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” custom_padding=”||38px|||” header_2_font_size_tablet=”36px” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”1.3em” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

Entering the Canadian housing market for the first time can be an eye-opening experience. The market for homes in some neighbourhoods is fast-paced, eliciting bids from multiple buyers at once. It can be a lot to handle for novices and real estate<\/a> veterans alike.\u00a0<\/p>\n

–<\/span><\/p>\n

Making an Offer<\/h2>\n

Making an offer on a home is intimidating and exhilarating. Though your REALTOR\u00ae will be there to ensure the accuracy of your paperwork and consult you on your bidding strategy, there remains a lot of uncertainty.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

Putting in an offer is about much more than drawing up the necessary paperwork. You\u2019ll need to factor in current market conditions in the immediate neighbourhood, and bid high or low accordingly. You\u2019ll also need to come prepared to provide a down payment as well as secure financing. It\u2019s prudent to get pre-approved for a mortgage well before you even begin the homebuying process.<\/p>\n

\u00a0–<\/span><\/p>\n

Once you\u2019ve settled on the price and have the paperwork drawn up, your REALTOR\u00ae will submit it to the necessary parties and notify you of the success or failure of your offer. You should be prepared to negotiate and establish firm boundaries on those negotiations ahead of time.<\/p>[\/et_pb_text][et_pb_image src=”https:\/\/wahi.com\/wp\/wp-content\/uploads\/2022\/11\/iStock-1144821348.jpg” alt=”multiple offers in a real estate bidding war” title_text=”multiple offers in a real estate bidding war” align=”center” _builder_version=”4.18.0″ _module_preset=”default” max_width=”800px” module_alignment=”center” custom_margin=”||61px|||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” custom_padding=”||38px|||” header_2_font_size_tablet=”36px” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”1.3em” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

Multiple Offers<\/h2>\n

Before we dive into bidding wars, it\u2019s important to differentiate them from multiple offer situations. The term \u201cmultiple offers\u201d is used to describe any real estate asset that has received two or more written offers to purchase the property. In the case of multiple offers, each offer is presented to the seller leaving them to choose between accepting one, rejecting all of them, or submitting a counteroffer.\u00a0<\/p>\n

–<\/span><\/p>\n

Bidding Wars<\/h2>\n

The term \u201cbidding war\u201d is used to describe a situation involving multiple buyers competing for the same property by incrementally outbidding each other. This happens a lot in fast-paced Canadian real estate markets and has the potential to drive up the property\u2019s asking price.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

Bidding wars start when a seller uses the leverage of a multiple offer situation to encourage potential buyers to compete with one another. Bidding wars can happen incredibly fast, with incremental increases flying in from all sides until only the highest bidder remains.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

Bidding wars are a legal way for a seller to get the most money from their property. Some can even see homes selling for much higher than the initial asking price.<\/p>[\/et_pb_text][et_pb_image src=”https:\/\/wahi.com\/wp\/wp-content\/uploads\/2022\/11\/iStock-1156471893.jpg” alt=”bully offers” title_text=”bully offers” align=”center” _builder_version=”4.18.0″ _module_preset=”default” max_width=”800px” module_alignment=”center” custom_margin=”||61px|||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” custom_padding=”||38px|||” header_2_font_size_tablet=”36px” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”1.3em” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

Bully Offers<\/h2>\n

Bully offers also bare mentioning. You may encounter a few of them if you remain active in your real estate hunt for long enough.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

Most sellers opt to hold all offers until a specified date and time to cultivate a multiple offer situation or even a bidding war. This deferred review date gives the seller\u2019s REALTOR\u00ae enough time to generate a buzz around the place.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

When someone submits a bully offer, they do so by pre-empting that established date with an aggressive offer that\u2019s significantly over the asking price and giving the seller a hard deadline. The goal of the bully offer is to use the pressure tactic to entice the seller to sell the property before any other offers are reviewed.<\/p>\n

–<\/span><\/p>\n

Special Conditions<\/h2>\n

Purchasing a home in a bidding war isn’t just about outbidding other parties. Sellers may attach special conditions to the sale of their home for a variety of reasons.\u00a0<\/p>\n

–<\/span>
Special conditions attached to a real estate deal can include who pays what closing fees, or what fixtures, appliances, and pieces of furniture come packaged with the sale of the home. Sellers may insist you waive your right to a home inspection, while buyers can add that the purchase of the property is contingent on the sale of their current home.<\/p>[\/et_pb_text][et_pb_image src=”https:\/\/wahi.com\/wp\/wp-content\/uploads\/2022\/11\/iStock-1185049571.jpg” alt=”avoiding emotional decisions” title_text=”avoiding emotional decisions” align=”center” _builder_version=”4.18.0″ _module_preset=”default” max_width=”800px” module_alignment=”center” custom_margin=”||61px|||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” custom_padding=”||38px|||” header_2_font_size_tablet=”36px” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”1.3em” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

Avoiding Emotional Decisions<\/h2>\n

There are a lot of ways emotion can factor into your decision about buying a property. Allowing yourself to become emotionally attached to a property or neighbourhood may blind you to a home\u2019s deficiencies or cause you to make an offer on a home that is well outside of your budget.\u00a0<\/p>\n

\u00a0–<\/span><\/p>\n

Here are some tips for keeping emotions out of the homebuying process.<\/p>\n

–<\/span><\/p>\n

Establish your limits.<\/h2>\n

Understand your budget by figuring out\u00a0what you can afford<\/a><\/span>, and then set a firm price cap. Avoid temptation and only view properties you can afford.<\/p>\n

–<\/span><\/p>\n

That obviously means a bigger profit if you sell. You may also qualify for a home equity line of credit, known as a HELOC, which allows you to access up to 80% of your home’s value. This is handy if you want funds available to pay for repairs or upgrades, without the high interest rate of a credit card.<\/p>\n

–<\/span><\/p>\n

Seek advice.<\/strong><\/h3>\n

The homebuying process is complex and can be confusing, so rely on your REALTOR\u00ae for their expertise, experience and perspective. Talking it over with a friend you trust may also bring greater clarity.\u00a0<\/p>\n

–<\/span><\/p>\n

See as many houses as you can.<\/b><\/h3>\n

The more familiar you become with the bidding process, the more rational you\u2019re likely to be. It\u2019s also easier to walk away from a bidding war when you have five more places to visit that day.<\/p>\n

–<\/span><\/p>\n

Take your time.<\/b><\/h3>\n

Don\u2019t let friends or family rush you, and don\u2019t rush yourself. The homebuying process is a marathon, not a sprint.<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” global_module=”1002″ saved_tabs=”all” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”100%” max_width=”100%” custom_padding=”0px||0px||true|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wadl_newsletter_signup heading_text=”Stay up to date on real estate” disclaimer_text=”By clicking \u201csubscribe\u201d you agree to receive occasional emails from Wahi. You always have the option to unsubscribe at any time if you wish.” cta_text=”Subscribe” cta_alt_text=”Subscribe” cta_success_text=”Thank you” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wadl_newsletter_signup][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”42px||42px||true|” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||17px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”2rem” header_2_line_height=”2.5rem” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” header_2_font_size_tablet=”36px” header_2_font_size_phone=”1.5rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”1.3em” header_2_line_height_phone=”2.25rem” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

How to Know What a Home is Worth<\/h2>\n

The market value of a property is based on what a buyer is willing to pay. So how do you determine what a property is worth? You can start by better understanding the factors that influence its value like size, age, condition, location, updates and upgrades, and comparable sales prices of similar homes in the neighbourhood. Other factors to consider are economic indicators \u2013 including interest rates \u2013\u00a0 and whether you\u2019re buying in a buyer\u2019s or seller\u2019s market.\u00a0<\/p>\n

–<\/span><\/p>\n

Takeaways<\/b><\/h3>\n

–<\/span><\/p>\n