Most real estate professionals are honest and unless there is a signed offer in place would never use the threat of a competing offer in an effort to drive up a property sales price.
But just to make sure a few bad apples don’t spoil the bunch Ontario plans to crack down on phantom bids.
The scam involves a sales agent hinting to prospective buyers there are other bids as a way to coax them to bid higher.“You say, ‘We’re expecting another offer. I do have another offer. You may want to go back to your client and make sure this is their best offer’,” says said Joseph Richer, registrar of RECO. “You are suggesting there might be competing offers when there may or may not be.”
With the new rules, “You cannot suggest or even imply that you have an offer unless you have one in writing, signed sealed and ready to be delivered,” said Richer, while adding there have been very few formal complaints about phantom bidding over the years.
Read the full article here.
So the Canadian dollar is in the toilet now which means buying stuff here in some other currencies gets you a nice 25% discount compared to a year ago.
And yet who’s driving up prices on the east side of Vancouver? Local buyers according to some realtors.
“We had 20 people in the city who would have paid asking price and 10 who wrote offers and were willing to pay more,” said Rockel of Macdonald Realty Ltd.
She said no overseas buyers were involved in the final offers.
The big news was the property that got 31 offers:
Meanwhile, Vancouver realtors are still agog over the 31 offers that were received for a home at 3 East 60th Ave. in South Vancouver which was listed at $899,000 and went on sale 10 days ago.
“It was for sale on the Tuesday and by the Friday we took offers,” said Sebastien Albrecht, a realtor with Royal Lepage.
“I’ve seen multiple offers on properties — the most being 10 or 12 — I don’t think any of us have seen 31 before. It’s the talk of the town among realtors,” said Albrecht.
He said he couldn’t disclose the selling price because the property was in probate, which would have to be cleared before the sale could be finalized.
Not mentioned in that article is the fact that the asking price on that property was $30,000 under assessed, but still that’s a lot of bids.