Happy Thanksgiving! Fall 2019 has been active as September year over year results saw an increase in sales volumes and prices across all types of housing in Toronto compared to last year.
Given the tight housing supply, the days on market (DOM) decreased and multiple offers aka bidding wars are common. As with every war, there are casualties. This week I had buyer clients make an offer against 6 other parties. After the first round, we were told that the seller would be accepting an offer from another party.
Less than 2 hours after being notified that the sellers accepted another offer, the listing agent called me to let me know that the “winning” buyer wanted to back out of the deal even though that buyer already provided a bank draft for the deposit and the offer did not contain any conditions (ie. the deal was firm). Ouch! While my clients were disappointed and were walking wounded, the “winning” buyer was headed for critical care.
My understanding is that the “winning” buyer’s offer was way more than the next highest offer. So even after signing over the deposit to the seller, there was still a shortfall between the 2 top offers. As such, the “winning” buyer will likely face a lawsuit for the difference in selling price plus legal costs.
All to say, when I advise clients going into a bidding war, we walk through different pricing scenarios, play devil’s advocate to sanity check the price and take time to process so we have at least one night to sleep on a reserve price that makes us comfortable. In the end, it ensures that we are fully prepared and committed to the transaction before the gloves come off on offer day.
3 things I’m noodling through:
- I’m celebrating Thanksgiving with my family and there will be 38 in total. I normally make mashed potatoes for up to 12 people but am worried that scaling it up will result in a goopy and gummy mess. Do you have any tips for making delicious mash for an extra-large gathering?
- Many of you have probably read reports that reducing meat consumption, especially beef can reduce greenhouse gas emissions. I love meat and also vegetables but really hated the ‘veggie’ burgers of yore that tried to be a meat imitation but never come close to it. We recently tried the Beyond Meat burger at A&W and it’s actually pretty good for a fast food burger however I don’t think it can replace a hand-ground gourmet burger yet. I came across a show hosted by chef, Roy Choi which takes a look at the development of the Beyond Meat burger. Worth checking out: https://www.pbs.org/video/delicious-and-sustainable/ Can’t wait for them to develop a grilled ribeye steak replacement!
- I’m looking at my front lawn and I’m pleased to say it’s looking decent. However my backyard is another story. The garden is finally taking shape. Although I resodded several years ago, the grass looks terrible as I’m suspecting cinch bugs are making minced meat out of my backyard. Do you have recommendations on how to patch a lawn without having to resod?
Feel free to call me when you have a question or concern regarding the housing market, buying or selling a home, or anything else that’s real estate related. Even if you have no plans to move in the foreseeable future, you can consider me your source for real estate answers and advice.