News

SEND YOUR NEWSWORTHY VIDEOS TO VIDEOS@NEWSTALK1010.COM

Anger After Couple Pays $90-Thousand Above Asking For Home As Sole Bidders

Posted By: Michelle Rosa · 7/5/2012 6:08:00 AM

If you've ever purchased a house or a condo, you know how financially stressful it can be, but what if you learned you overbid by $90-thousand and yours was the only offer?

That happened to the clients of a Toronto real estate agent who's calling for more transparency in the entire process, specifically, in bidding wars.

Josie Stern tells the Star, that it should be mandatory for listing agents to provide potential buyers with a roster of all brokers and agents making offers on the same property and that should be done before any offers are presented. In this specific case, she believes there were three bidders interested in the midtown property.

When her clients' bid had been accepted about 10 minutes later, Josie Stern realized that something wasn't right. She eventually convinced the listing agent and the sellers to accept a bid of $45-thousand over asking for the near $1-million home.

Stern also wants to fight against what she calls "double-end" deals by agents acting as the listing agent, but then represent a buyer who has the advantage of having an agent who knows exactly what offers are on the table.

Leave a comment:

showing all comments · Subscribe to comments
  1. screighton posted on 07/05/2012 07:56 AM
    Why not just make it illegal to offer more than the listing price and stop bidding wars cold in there tracks?
  2. DaveD_5468 posted on 07/05/2012 08:56 AM
    What made the agent think there were three bidders? Sounds like somebody lied to somebody. And I guess the couple didn't actually pay $90K over listing price if they negotiated it down to $45K over list.
  3. Rob posted on 07/05/2012 09:13 AM
    It sounds to me like the purchasing agent did a bad job, and should have advised her clients better. Not all agents are good and here is an example of a bad purchasing agent.
  4. Aleksandar Filipov posted on 07/05/2012 01:00 PM
    I am a Realtor and I go through these situations all the time. Sometimes I am on the buying end, and sometimes I am on the selling end of a bidding war.

    Its not fun. when I am the selling side in the bidding war, I am very very careful to make sure that I am very clear how many offers there are and not giving out false impressions as my licence is on the line. I would never risk my licence to create a fake bidding war.

    When I am on the buyers end, I make it very clear to the selling agent that I want to know how many offers there are on the table (Signed and submitted). Sometimes I even ask who the other agents are that have submitted offers. There are no clear rules on bidding wars. Agents with experience can see when something is fishy. Always have an agent on your side that knows what they are doing.

    With these new companies coming out that allow you to sell your house on your own without an agent.... the Sh. is gonna hit the fan and home owners will be looking at paying for lawsuits instead of a commission to a professional that knows what they are doing. Watch and see..
  5. al posted on 07/05/2012 02:17 PM
    my buying agent wrote in our offer that all other offers be disclosed after the deal was accepted to ensure this did not happen. problem solved?
    1. Aleksandar Filipov posted on 07/06/2012 10:52 AM
      @al @al

      Problem not solved.
      Reason: Good luck having an agent that just lost the bidding war leave his offer containing his clients personal information at the table to later be given to the winning bidder.

      We (agents) are not allowed to give out our clients personal information to anyone including a winning bidder. What the agents agree on has nothing to do with losing bids and therefore do not have to comply with anything.

      99% of the time, the losing bidders will take there offers away if they lose not leaving anything behind at the table.

      Its kind of like poker... You won't know if someone bluffed and by how much.
showing all comments

Videos

Trending