Real Estate Talk BIDDING WARS Will I Every Be Able To Afford To Buy?
Facebook thread:
Contributed by: Jay Lough Hayes, Sales Representative Peterborough Realty Inc. 705-772-1025
“This is hwy robbery! I had a realtor tell me to move up north when I commented on the prices. Our children and grandchildren are moving away because prices are ridiculous. I tore a strip off him. Did you see the post from one asshat in Oshawa? Bragging on FB sold a house 50k over asking. Only had one offer, bet the people who purchased it would love to know that.” “I hear ya. I am stuck in the middle of this mess. Single father trying to secure a place locally so I can continue to raise my kids (and see them regularly) in the town I was born and raised in. Losing out when I am bidding well over asking w /no conditions. Heck last one was a wartime 4 bed home w barely a basement and it went for over $500,000. My guess will turn it into a rental and rent it out for a crazy amount. So tired of it – being forced to spend 10s of thousands over asking to even have a chance. I have pretty much given up in my hometown as it is just out of control and it really is no better around the other counties.” “We have to move your way. They have made it too bloody expensive to buy anything in Durham. Even Bowmanville and Newcastle have million dollar listings.”
So, when was the last time you worked for 1 or 2 weeks at a job you’re very good at and with zero pay cheque at the end? That is exactly what far too many real estates agents are witnessing over the past months. Not just here in Peterborough but in too many locations. A friend of mine in Charlotte North Carolina is experiencing the same difficulty. Trying to guesstimate what the lucky number will be in the real estate bidding wars. What’s happening? Real estate agents have a home to list. Today’s trend is to underprice the listing, hold offers for 5-10 days and wait for the buyers to set the selling price. With anywhere between 5-50 offers coming in on one house, the “Your guess is as good as mine” adage truly applies. It’s like the Miss America pageant. Your offer must be flawless. Every bank pre-approved contestant must have an all cash offer, a huge deposit, the seller’s ideal closing date, purchase without a home inspection, and guess at the most likely end price without any idea whether their offer is the lucky winner. 36
What a terrible waste of time for both the realtors and all those buyers. Obviously if there are 16 offers on a property, 15 realtors aren’t getting paid and 15 buyers are not buying a house. Of course, the real estate agent looks like a hero selling a property for $100 +- over asking when the asking was ridiculous in the first place. Pricing a property isn’t rocket science but today, with a shortage of properties to purchase and the government trying to boost the economy with record low interest rates, no one can even guess what a buyer is willing to pay for their next home or investment property. The banks lending the money, send their appraiser to physically view the home to ensure the property is worth what that bank is about to lend on. If the appraisal comes up short, the buyer can either walk away from the deal, renegotiate the deal or put more money down to meet what the bank is lending. Today, it seems no offer is turned away by the banks. In some markets, when the buyer REALLY wants that house, they have been seen to offer the usual over asking price BUT then throw in 2 front row sea-
