[URBAN NOTE] "Toronto realtors warned on handling of pre-emptive offers in red-hot market"
The Toronto Star's Tess Kalinowski reports on one new pitfall of the Toronto real estate market.
It’s not enough that Toronto area home-buyers are facing competition so fierce that list prices have become virtually meaningless and bully or pre-emptive offers are increasingly the norm.
Now there’s an added twist.
Some sellers’ agents say they will no longer notify other interested consumers when their client decides to entertain a pre-emptive bid, and not wait for the date they set to consider all offers.
Ontario’s real estate rules require the property seller’s brokerage to notify all other interested buyers that a “bully” offer, usually well over the asking price for the property, is being considered.
That notice allows other consumers to compete for the same property if they want to.
But, in the super-heated Toronto-area market, some brokers are including a line in their listings saying they reserve the right to accept pre-emptive offers without notice.
It’s not enough that Toronto area home-buyers are facing competition so fierce that list prices have become virtually meaningless and bully or pre-emptive offers are increasingly the norm.
Now there’s an added twist.
Some sellers’ agents say they will no longer notify other interested consumers when their client decides to entertain a pre-emptive bid, and not wait for the date they set to consider all offers.
Ontario’s real estate rules require the property seller’s brokerage to notify all other interested buyers that a “bully” offer, usually well over the asking price for the property, is being considered.
That notice allows other consumers to compete for the same property if they want to.
But, in the super-heated Toronto-area market, some brokers are including a line in their listings saying they reserve the right to accept pre-emptive offers without notice.