How to Circumvent/by-pass bidding wars!

[LordWanker]

Any ideas on how to beat this extremely unfair practice?

It is not really unfair as no one is forcing you to participate. As mentioned in previous posts, do your homework on the neighbourhoods you want to live in and go from there.

 

[Therion]

The actual value for a home is what it was paid for. If someone paid $80k over asking then that is the price they felt the home is worth.

That's silly. Many things are not worth what people pay for them. Bid-up penny stocks come to mind. It's the same thing for houses. If numerous houses in an area go for $500k and someone gets caught up in the heat of the bidding war and pays $575k for a house, that doesn't mean that the house is worth that much, because likely you would be unable to turn around and sell it for the same amount.

I know you're a real estate agent and you're biased, but you have to be objective.

As to the OP's question, wait a year or two. You'll be able to buy most houses in the GTA for probably a $100k less than what they're going for now.

 

[myblissfulhome]

That's silly. Many things are not worth what people pay for them. Bid-up penny stocks come to mind. It's the same thing for houses. If numerous houses in an area go for $500k and someone gets caught up in the heat of the bidding war and pays $575k for a house, that doesn't mean that the house is worth that much, because likely you would be unable to turn around and sell it for the same amount.

I know you're a real estate agent and you're biased, but you have to be objective.

As to the OP's question, wait a year or two. You'll be able to buy most houses in the GTA for probably a $100k less than what they're going for now.

When list price is considered area solds are looked at first. The sale price of a home which sold recently takes precedence in shaping over all value considerations. This mean if someone felt that a property was worth $500k then all properties that are to be sold in the general vicinity will gauge their list price based on this fact. The closer and similar to the home sold the more it effects the price point.

Realtors didn't invent retail and so setting a list price of a home follows some similar guidelines. Such as: you will most likely find a home listed for $439,000 vs a home listed for $437,532. The average Buyer looking to move their family takes in many other considerations. You will notice that there are specific school districts that they want their kids to be in and so must live within specific boundaries. We find that this immediately prepares the Buyer to consider paying more if push comes to shove. If you are trying to only consider dollars and cents then you would be more inline with investment real estate where money is the primary focus.

You may also want to consider that we do this for a living day in and day out / 7 days a week. This give us a unique perspective that one can just pickup from public portals or the general media. We also represent both buyer, sellers and investors. Each have their own motivations which ultimately effect value.

Real estate does follow cycles but is unpredictable in terms of it's fluctuations. I have been hearing about the condo bust for the last 6 years. Of course prices will drop at some point but they will also rise again at some point. When is the time to buy? Consider both mortgage rates and the price of the home as paying a little less with a high interest rate will cost much more in the long run. Other than that...there is no magic crystal ball so take your time and feel free to ask or voice any opinion