Posted 10.7.12 @ 13:40 by: Staff

When it comes to Oakville homes for sale, bidding wars are inevitable. With so many luxury homes for sale, Oakville is a hotspot for buyers coming in from all over the GTA. But what you do need to know is that how you’re selling your home or buying one will affect what kind of rules you have to follow. If you’re not working with an Oakville luxury realtor (don’t do this!), you’re going to have a different set of rules than if you’re a real estate agent that is selling through the MLS. Private sellers and realtors alike are still going to need to know how to respond to a bidding war.

What is a Bidding War?

They’re simply just multiple offers that are coming in at around the same time for a property:

Buyer A bids $624,000 on a property that’s listed at $624,000 at 12pm.

Buyer B bids $629,000 on the same property at 1pm.

Buyer C bids $630,000 on the same property at 1:15pm.

Buyer B bids again, this time for $650,000 ten minutes later.

No buyer will know exactly how much or the conditions that the other buyers have attached to their bids.

If you were selling this piece of  luxury real estate and you jumped on the first offer of $624,000, you would have received your asking price. If you waited about an hour and a half, you would receive $26,000 over asking price. But it doesn’t always work this way, and it could backfire on you. You don’t have to wait until a certain time to entertain offers on Oakville homes for sale; it will just depend on the way the home is sold.

Will My Offer Be Disclosed to Other Buyers?

If you’re dealing with a private sale, a private seller can show one bidder’s bid to another. If you’re working with an agent however (representing the seller), they can tell you how many offers have been received. The luxury realtor handling the sale will have a moral obligation not to disclose information about bids. If you’re a buyer, as long as the bid hasn’t been formally presented (by email, fax or delivery) you’ll still be able to pull out of the running if you decide not to bid on a home.

How Do Bidding Wars Go Bad?

If you’re trying to buy a house, you may end up getting above and beyond emotionally invested in a property and paying $26,000 more than the asking price (or more!), but you’ll get the house you want. If you’re buying or selling luxury Oakville homes, you’re going to want to make sure you have the right Oakville luxury realtor working for you. We have a lot of experience and can help you make sure you get the right price for the right house, whether you’re selling or buying it.

Visit our Oakville homes for sale page today to find the perfect Oakville home for you! http://www.goodalemillerteam.com/Homes.aspx

Pertinent and insightful information on Oakville real estate as well as commentary on current events in our community.