There’s a date for offers
It’s been a fixture of the Toronto real estate scene for about twenty years. A new listing comes on, folks stream through the open house. The number one question… “When’s the offer date?” The surprise is how few buyers actually have a sense of the statistics behind multiple offers.
Do they all sell in multiples?
Multiple offers frequently make up more than half of the sales in “hot” downtown areas. In other parts of central Toronto, between 25% to 40% of sales go over asking during busy times of the year. In quiet times, or in “sleepy” areas (if you can find one), the percentage of multiple offers can fall to about 10% of sales.
How high do they go?
If you’re going to take part in a bidding war, this is an essential statistic that your agent should give you for your specific market niche. The chart above is based on 40 central Toronto houses that sold in multiple offers last week. Half of those bidding wars produced a sale price less than 10% above the listing price. But another third of them actually went 16% or more over.
Do your homework
Play out the scenarios: if two people are bidding, how high could it go? What about six people competing? As a rule of thumb, the more buyers attracted to a property, the higher the final result will be.
At the end of the day, don’t forget that other group of potential sales waiting for you to discover them… the ones that won’t go in a bidding war. They just need that “one” buyer.
If you’re thinking of selling your home or purchasing one, a good agent will provide guidance on pricing and timing strategy. We’d be happy to help. You can email us, or feel free to call James and Joanne at 416-483-8000.