Webster Dictionary defines Weary as:
1: exhausted in strength, endurance, vigour, or freshness
2: expressing or characteristic of weariness <a weary sign>
For we realtors engaged in the Toronto real estate market, now is the time when our fallback from "Oh So Unbridled Enthusiasm!" is complete and utter weariness. But who could fault our feeling a little frayed after the unrelenting
days weeks months years of bidding wars. It's happening to Buyers too. Anyone who has repeatedly pursued the purchase of property and found themselves in competition again... and again... and again... is prone to weariness.
In our current Toronto real estate climate Buyers are frequently facing the prospect of a bidding war.
So what does a Buyer do when trying to resolve how much to pay for a property?
When faced with competition against other parties, the market value of a property is no longer the direct negotiations between a Buyer and a Seller, but the end result of two or more Buyers blindly bidding against each other. Only the listing agent and Seller are privvy to the details of each offer submitted, and through their direction the process is played out until one Buyer has sufficiently impressed the delighted Seller by submitting a condition-free all-cash 'likely dramatically over the asking price' offer.
Here's a quick lesson:
In the bidding war scenario, the ultimate final sale price of a property is often precedent-setting, and equals the total sum of the following four 'values':
1) the rational prudent educated 'appraised' value the Buyers and their sales representative have established through research and experience,
2) the 'emotional premium' accorded the Buyers because the property really truly absolutely is 'the one' (think prince charming and romeo constructed of bricks and mortar),
3) the 'buyer fatigue' value that Buyers add in their desperation to secure something after an extended search. Like months and months of looking every weekend fatigue. Some of you know what I'm talking about!
4) the 'motivation value' that comes with potentially becoming, or already homeless. Like facing an imminent closing date on your own sale, or having given notice to vacate your rental. Said person(s) may or may not be sleeping on a couch in their in-laws 1980s pastel floral decorated guest bedroom.
Last night a pair of my Buyers lost out on a charming fully-renovated downtown-east semi-detached home listed at $549,900. My folks bid 12 percent over list and ended up ranking third out of eight offer submissions. It popped for about $10,000 more over their bid and now serves as the new barometer of value for this immediate location. As boo-hoo as I am, I commend my Buyers for their valiant attempt. They did everything right to secure this property but, shall I say, "T'was not to Be". As far as I'm concerned, this just means the universe has a more Perfect Property in store for them. How do I know? After twenty-one years as a realtor, it always works out in the end...even when one has moments prone to be weary.
Thank Goodness I'm an Eternal Optimist!
Are you about to embark on a property search, and want to consider all of the options available to you? Urbaneer begins your house hunt by helping you identify your needs and wants and working to match that criteria with the perfect property. Then we continue to support you every step of the way; we are as invested in your happiness as you are. We’re here to help!
Want to know more? Just email Steve@urbaneer.com or call 416-322-8000!
~ Steven and the urbaneer team
earn your trust, then your business
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage - (416) 322-8000
** Do you want a quick and easy crash course on the approaches realtors and appraisers use to establish what property is worth today? Click my HomeWatch newsletter HERE for a free informative lesson! And by all means, if you or someone you know would like to know what their Toronto property might command in today's intense market, we are here to help!
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