Buyer Burnout in a Competitive Market
I have assisted buyers for quite some time (since 1988) and in a
market such as the Toronto market, bidding wars are common. This is
due to the fact that, in the most desired neighbourhoods, demand is
always higher than supply and putting a property up for sale with an
offer date is (if it can be successful done) a benefit that the listing
agent must consider providing for his seller client. However, this
creates a stressful buying environment for the buyer and quite a few
buyers, after a run in with the 'offer date' experience, end up
winded, disillusioned and consider backing away from the market.
The statistic that has been appearing on government and lending
institution sites (when referring to Toronto's growth) refers to the fact
that we need 39,000 new residences annually. We will, in a stable
market, always be in a situation of demand being greater than supply.
Thus the annual increases will continue and there will be the
occasional bidding war. However, the biggest error a buyer makes is to
let this dishearten them and to 'temporarily' remove themselves from
Removing yourself from the process accomplishes three destructive
things: it reinforces the pattern of letting a negative immobilize you, it
stops your growing knowledge of the market that pertains specifically
to you and it increases the cost of the real estate that you will want to
purchase when you re-enter the market ( as the annual increases will
not stop and wait for you ).
My personal philosophy is that nothing that is antagonistically forced
ever has a positive outcome. You seek my assistance to
give you a clear and solid understanding of the market as it pertains to
your needs and desires. There is a fine balance in pursuing a desired
outcome with a clear understanding of the situation as opposed to an
aggressive push for a 'must have' goal. The latter will either give you
what you had to have (but at quite a cost) or it will burn you out.
Let's take a moment to examine the 'dreaded' offer date scenario. The
asking price seldom has any credence in this market. It is the selling
price that matters as this is the market value. Market value is what the
buyer is willing to pay for a property that has been exposed to the
buying public for a proper length of time and which has been
purchased without any forms of duress on the seller or buyer. When
we examine that definition we do see that in a bidding war with little
supply there is duress on the buyer. The best approach is to decide on
a strategy around a price that you are willing to pay based on market
value. Those who get overly aggressive usually wake up the next day
In most of these cases the seller may as well be asking one dollar as
the asking price is never indicative of true value. Whenever I email
you a potential property I am seldom sending it based on the price
alone. I am sending it because I believe it may be of interest to you
and it is within the perimeters we have discussed. If it is of interest
then we look at the property and begin a discussion of its true value.
This is the primary distinguishing factor of the professional approach;
my ability to assess the true value and, should you decide to make an
offer, to then further assess the situation in which we will be
submitting the offer in order to negotiate effectively on your behalf.
My clear focus is to guide you through this process so that the outcome
is to your benefit on terms you can sleep with.
It is my core belief that, if you wish to make a move in the real estate
market, never stop looking and never stop the deepening education
that comes as a result of the viewings, questions, answers and
discussions that come with the process. It may not be continual bliss,
but it is what is best.
Ultimately, when it is meant to happen, the right house will present
itself, you will be prepared and I will secure the purchase for you.
I am devoted to my responsibilities in the team that is you and I. One
of those responsibilities is to remind and encourage you to stay as
devoted as I am to your goal of owning the property you've desired.