New buying phenomenon throws rules out the window

In the superheated Toronto market, you have the good in demand for properties, the bad in heightened competition, and as for the down-right ugly…
“It’s absolute mayhem out there,” said agent David Fleming. “It’s the Wild West… I would estimate that in the freehold market, a third (of all offers) are bully offers. It’s very frustrating.”
Bully bids, of course, involve buyers attempting to circumvent the bidding frenzy of offer night by enticing sellers enough to accept an early – and hopefully more attractive – offer. But these types of bids tend to create animosity as buyers and investors fight for an increasingly short supply of properties in the city.
“It’s difficult to get a decent house in the central core without encountering competition,” said Realtor Marie Natscheff, who added that bully bids are especially common in the detached market in central Toronto.

“We certainly don’t like (bully bids) because it creates a lot of hard feelings. It comes in late at night, your clients aren’t expecting it. It makes it difficult for people to compete.”
Fleming says many listing agents will try to inform everyone who has “expressed interest” in the property that an early bid has been registered. But that really doesn’t give those interested parties the necessary notice to seriously consider the property.
“It feels great if you win,” added Natscheff. “But let’s say you’re just thinking about a property. It oftentimes doesn’t give you enough time to think or get your ducks in a row.”
But the Real Estate Council of Ontario hasn’t yet caught on to this phenomenon, so there aren’t any rules in place that govern bully bids. What it really comes down to, according to Fleming, is integrity.
“If someone sets an offer date, you should keep it,” he added. “We’re never going to find rules that satisfy both buyers and sellers.”

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Investment Hot Spots:
Parry Island, St. Vincent, Wilberforce, Dundela, Brant


  • by will 2015-04-29 10:11:18 PM

    Isn't this the way real estate is supposed to work? You put your property on the market and someone makes an offer? Sometimes it's the first visitor. Early bird gets the worm.
    I get people put an offer date down but who really cares when they expect to get thier bids by.

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address


Is a T.O foreign sales tax a good idea?