Most sellers are elated at the prospect of dozens of buyers financially genuflecting on their doorstep.
Most buyers are either self medicating or seriously considering some derivative due to the stress involved with the inherent blind bidding process.
How much is enough? 5% over? 25% over? Even higher? This is but one of the many negative ramifications besieging buyers and brokers.
Attached below is an editorial detailing some of the pit falls endemic to a very dated procurement process. Surely there is room for some structural improvement.
Article: End blind-bidding to end house-price insanity
There is no doubt that Blind Bidding is a massive conundrum!
Unquestionably the lack of transparency has repeatedly caused unwarranted prices hikes in numerous neighbourhoods across the country, none more so than price hikes experienced throughout the lower mainland of Vancouver and the Toronto basin.
Much of this irrational disparity in bidding prices could easily be mitigated if the Federal Government mandated that all homes require a qualified AIC appraisal. This is particularly true for homes sold under the auspices of multiple offers.
Banks and buyers would be better protected financially, knowing that their purchased property is reflective of the current value of a similar homes in that specific neighbourhood. The fact that an AIC appraisal is a legal instrument focused almost entirely on the concept of value, adds instant legal creditability to the pending real estate transaction.
Lenders could require, that if the buyer absolutely wants a specific property, that their down-payment shadows that added level of risk.
This financial reality (appraisal) contrasts significantly from a home inspection form that is filled with pages of indemnification regarding the competency of the inspection.
Discover the difference in service, product knowledge and professionalism at Heritage Caledon Realty Inc. and Accurate Appraisals.