It’s unsurprising that, in Toronto’s hyper-heated market, bidding wars are essentially part of the home-buying process. But what about the newest phenomenon: bully bids?
Bully offers are gaining prevalence as buyers attempt to circumvent the exhausting bidding wars and jump straight to their top price for a property.
“It’s hard to work in this market when there are bully offers all over the place,” says Toronto Realtor David Fleming. “It happens all the time, and it’s frustrating for the buyers when a listing comes out with offers coming out next Tuesday. Then all of a sudden there’s a bully offer…”
Fleming says the problem isn’t so prevalent in the outlying areas of the GTA or in Toronto’s condo market. But for the single-family homes, which are difficult to come by in the first place, bully bids are becoming more and more commonplace.
“The sellers have the final say,” he explains. “You can say ‘no bully offers’ on the MLS listing, but you can’t stop someone from submitting one and you can’t stop your sellers from looking at it.”
Bully offers also drive property prices up higher and faster; another thing that Fleming says is unavoidable.
“The market in Toronto will continue to do what it’s done: go up,” he says. “I don’t think it’s unrealistic or surprising, and with the lack of available homes and low interest rates and the net migration; I think that’s what going to happen this fall – prices will increase across the board.”
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