Post # 91
Congrats on your bid being accepted!
Buying and selling in a hot market is a bit of a crapshoot. I doubt your agent could move the needle much, as long as the sellers were happy with what you offered.
But, I don’t believe that you were offering too little earlier. Housing markets aren’t necessarily rational. For example, it took us 3 losing bids before we had an offer accepted. The first home we lost ended up selling for 1.45 million, which was 250k above our bid. But guess what, it’s valued lower than the home we did buy, for 1.3 million. Sadly, 150k is just noise or rounding error in this market. In the Bay Area in the 2014 to 2017 timeframe, there were a lot of cash buyers who just desperately needed to park their money somewhere outside of China. They made remote bids via agents who were authorized to offer anything it took to win, regardless of actual value of the home. That has lessened to some degree, but the Bay Area has no shortage of families who make 300k and above to keep the demand going. The market is still crazy expensive but irrational overbidding has reduced somewhat.
Post # 92
Congratulations, how exctiing! What area did you end up in?
Post # 93
those days were wild. It was the same way in Vancouver BC. I have seen offers where the buyer left the price blank and put a clause in their contract that said they would beat the highest offer in a mulitple offer situation by $500,000.
A lot of people really needed their cash all cleaned up and a lot of sellers hit the jackpot because of it.
Post # 94
we are in etobicoke by the lake, which is where we wanted to stay 🙂
Post # 95
WOW!! that is what I feel like is happening here in toronto now. A awful bungalow that didn’t even have photos of the inside because it was so gross sold for $900K yesterday, and it was a complete tear down. Its scary, but great if your the seller. They arent helping the situation here by continuing to make getting a mortgage easier and easier for people.
Post # 96
augstbabie78 : They arent helping the situation here by continuing to make getting a mortgage easier and easier for people.
Sounds a bit familiar and terrifying. This is exactly what caused the recession in 2008. Yikes.
Post # 97
Oh wow! Congrats! Sadly, just moved out of that area (Long Branch) to one of my other favourite neighbourhoods. Very happy for you! Awesome area… and definitely a hot spot now!
Post # 98
I’ve been thinking that too. These housing prices are inflating rapidly. And there’s never a guarantee that they will hold their value.
Post # 99
and I wonder how these homes are appraising for the sale price if people are paying $50-250K over asking. How are people even getting mortages?
I would steer clear of purchasing a house until the market corrects itself. It does not seem like a good investment at this particular time.
Post # 100
It may also help to note that some seller’s realtors will price homes lower than market price as a strategy. It’s meant to create greater interest and is a tactic to create a multiple offer situation. For example, if a house is priced at $800k but fair market value and similar homes are going for $1 mil, then that price brings a lot of attention. People are hoping to get a deal which means you end up with several offers and since no one knows what anyone else is offering, they will do the best they can, which generally bumps up all the bids. If the winning bid is $1.05 mil, then they technically paid $250k above asking BUT from a market perspective, they only paid $50k above FMV if that makes sense. Therefore, the bank will still likely fund the sale.
Post # 101
LOL I’m an agent in a NYC suburb. I know exactly what I’m talking about. I do this for a living