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Are Toronto Homes Being Priced For Bidding Wars? Diane Plant, Broker
Are Toronto Homes Being Priced For Bidding Wars?
 
 Buyers are frustrated and so are their real estate agents. I have been a Broker in Toronto for 26 years and I have witnessed many market changes and trends. Bidding wars are everyday occurances now in the negotiating process.
 Pricing a home was always based on fair market value. How was this established? Recent sales of similar homes, on streets surrounding the property to be listed gave the agent a reasonable price at which to offer the home for sale. 
 
Today, homes in the "hot pockets" of Toronto are often priced $100,000.00 under the fair market value. If in week one a home is priced at $749,000.00 and sells for $850,000, in week two a similar home is priced at $755,000.00 and sells for $860,000. The following week another house is listed and sells in the same price range. These three sales would establish the fair market value. However, the next home to come on the market is once again priced at $760,000.00.  All these sale prices were a reuslt of a bidding war.This would give Buyers and Agents a clear indication that the home is priced below fair market value. Buyers and Agents have to realize that an offer on the home will go way above the asking price, ... more

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