Posted 5.30.13 @ 10:45
Ontario is moving to put a stop to “phantom bids”, in a move that would allow sellers to custom fit how much they pay in fees to agents, depending on what they actually need from a realtor. This way if you’re buying or selling a home you’ll be able to make sure that you’re getting what you need from your Oakville luxury realtor (us!) without having to bundle in a lot of services that you just don’t need. A lot of the new rules will be a repeat of what’s already in the RECO rules (Real Estate Council of Ontario), but they’ll also put a stop to phantom bids.
What are Phantom Bids?
Phantom bids are a nice way of saying fake bids. If a house or even an antique is up for auction, some people related to the auction house or the seller will use these to get people excited about a hum-drum property. A lot of buyers will see that the price of the house has gone up by $100,000, that must mean it’s desirable, right?! Wrong. It’s a dirty trick that’s used by people who can’t figure out how to sell a home any other way, and the last thing you want when you’re buying a home is worrying about if the person you’re bidding against is real or a phantom.
Are Phantom Bids a Problem?
They’re apparently enough of a problem throughout Ontario that this law may pass. The Star ran a poll about 5 years ago with 30 randomly selected realtors from around the area; over 2/3rds of them believed that there was some phantom bidding happening throughout the market.
The last thing buyers need to worry about is getting into a bidding war with themselves – imagine bidding on luxury Oakville homes for sale and paying double just because someone was unscrupulous! It’s just not acceptable, even if it only happens 1% of the time.
How Will They Stop Phantom Bids?
The new proposed legislation will make it so that all new offers on a property have to be received in writing – meaning you can’t just phone in your bid. This might slow things down a little, but it’s better to be safer than sorry when it comes to this sort of thing. A more transparent bidding process benefits just about everyone – except for the scammers. Buyers and sellers both will have a better choice when it comes to what they pay and what they get, and it might even spur a little extra creativity in the market.
Spring has sprung, are you ready to buy Oakville luxury real estate? This is the busiest time of year, which means you might have more options than you can shake a stick at. We’re the Goodale Miller team and we’re here to help you buy or sell; give us a call today and see how you can save!