Minimize the costs of bidding wars

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Most Canadians know it's a better idea to stick to their budgets than get sucked into a bidding war, according to data from the Bank of Montreal.

Figures from the BMO Home Buying Report, which polled 2,000 adult Canadians, show that only 28 percent of homebuyers are willing to fight over a property. This number was higher for first-time homebuyers, with 39 percent saying they'd be willing to enter a bidding war over a home.

Data also shows that bidding wars were more likely to occur in Toronto, Vancouver and Calgary. In fact, a quarter of home sellers in Calgary said they purposefully under-priced their properties in an attempt to spur competition among homebuyers. Continue reading

How to stay cool, competitive in a real estate bidding war

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Maybe you know the feeling: After touring available homes on the market, there is one that stands out. You know it the second you walk in the door, and as you walk from room to room, you can't help but see yourself and your family living here. No home before or since compares to it – the ultimate dream home – and if the price is right, it's time to make an offer.

Under normal circumstances, this process is stressful enough. We practically jump out of our skin every time the phone rings, willing every call to be good or bad news simply to put us out of our misery. Unfortunately, the call isn't always good or bad – sometimes, the forecast remains uncertain. Oftentimes, the call comes with news that a bidding war has begun. Do you know how to keep your cool?

According to an article in The Globe and Mail, there are a few steps hopeful homebuyers can take to ensure they stay calm, collected and competitive in a bidding war. Rather than bidding more than necessary simply for the sake of winning, experts give the following tips to people as the bids heat up: Continue reading