The real estate market is buzzing here in London, Ontario! In fact, there’s so many buyers looking for properties that we have a shortage of inventory. Psst...if you’ve been thinking about putting your house up for sale, now would be a great time! We've been seeing multiple offers everywhere.
As we head into what we can only expect will be another busy summer season for real estate in London, Ontario, there’s no doubt we’re going to see some of the hottest properties attracting more than one interested buyer. If you are a house hunter who falls in love with a property but find yourself in competition with another buyer, you’re going to want to make sure your are prepared in the event that you end up in a multiple offer situation, most commonly called a bidding war.
Phantom bids (when an agent hints that there may be another offer) are dangerous as they not only encourage bidding wars, but in doing so, they also inflate homes prices, which isn’t good for anybody. You may have already heard rumours about the phantom bids that were surfacing in the real estate market in recent years, especially in Toronto. You may have even been involved in a deal where you suspect the agent representing the sellers was insinuating there were other offers coming in and felt pressured to bid higher on a property than you would have liked, never knowing if that other mysterious offer was even real. Regardless, phantom offers are a thing of the past (at least, legally).
Fortunately, the recent Ontario law that came into effect last summer (July 2015) was established as a means of protecting both sellers and buyers from potential phantom bids unethically making their way into the offer process. Now, if there is more than one offer on the table, the agent representing the listing must have all the written and signed offers before they can share with other agents and buyers that there are, in fact, competing offers on the table.
Up until that point, agents representing the sellers could imply to other agents representing the buyers that they were receiving more than one offer, without ever having to prove the existence of an actual competing offer, oftentimes setting things into a bidding frenzy. While this was most popular in hot markets like Vancouver and Toronto, there have still been some reported suspicions of this happening with real estate offers here in London, Ontario.
Making an offer on a home you have fallen in love with is already a charged and emotional process. Add the possibility of someone else potentially making a bid on the property you want only further heightens this situation. It’s also an unethical tactic on the part of the agent representing the property that, up until now, has been difficult to substantiate.
This level of transparency on the phantom offer situation is a step in the right direction, and leaves doubt at the door for both buyers and sellers alike. Goodbye phantom bids, hello real offers! Entering into a multiple offer situation or bidding war is stressful enough of a situation for buyers, but now, if you are entering into a bidding war, at least you know that there are actually other offers on the table.
As I mentioned, we are short on inventory right now in London, Ontario and there are a lot of buyers looking for properties. If you’d like to receive a FREE home evaluation and talk about listing your property, get in touch with me!
Thanks for reading,