Kiyoko Fujimura

Buzzbuzzhome Corp.
May 13, 2010

Bidding wars are incredibly stressful for buyers racing to find a home. And you’d think that sellers would love the offers coming in. But it can be stressful for them too. After all, they’re leaving all but one buyer out in the cold.

So one agent has developed a strategy to allow sellers to have their cake and eat it too. The cake being the high price that results from bidding wars. The eating part is the ability to do it without killing the dreams of potential purchasers.

The agent listed the project at $539,000 and noted that the “buy it tonight” price was $590,000. That price was determined by the seller’s answer to the agent’s question, “What would your dream selling price be?”

It sounds like ebay to me…where you can either wait for the auction to end and see if you won, or simply pay a premium to avoid the stress of potentially losing out to another buyer. And for a lot of Toronto properties these days, it seems like an inevitable auction.

And, lo and behold, someone bought it! It’s definitely a strategy which responds to buyers’ demand right now. Bidding wars can leave a couple disheartened and angry (not to mention back to the drawing board for finding a home).

The only problem with this strategy is that it might not be somewhat misleading.

…no other terms were mentioned in the advertisement, so if a buyer brought in a full price offer, but with a closing date two years from now, and with a very low deposit, this would clearly not be what the seller had intended. In addition, what would occur if two buyers came with similar offers on the same evening.

Meh, whatever. If some buyer thinks that putting their signature on the ad is enough to get that house in the bag tonight, then they’re probably not intelligent purchasers. There are always contingencies. In my humble opinion, this sounds like a great way to avoid the multiple offer process and getting the selling price they wanted.

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