If you’ve ever been in a competitive bidding situation when buying or selling, you may have wished you could’ve known what the other buyers were willing to pay or, as a seller, wished you could’ve told the other buyers what the highest bid was so that they might’ve been willing to go higher to win.  Anyone familiar with that situation?  Well, guess what?  New rules for Ontario real estate will now allow for that very situation as long as everyone agrees, in writing.  A seller will have the ability to set up the offer process to allow for “open bids” but, at the same time, can change their mind at any time.  A buyer also has the right to choose not to participate if they feel this is not in the best interest of their purchase.

Why is this happening?  The government feels it is a way to reduce rampant overbidding in real estate and help reduce prices.  They say that transparency in the bidding process will help bring down the skyrocketing price of homes.  Our governing body, RECO, states there’s little research to support that theory and, in fact, there are countries where the opposite holds true.  Open bidding, in my opinion, could lead to negative effects for sellers and buyers.  This will be an interesting time as we bring about these changes and experience the outcomes. 

Speaking of changes, there are more being introduced, including what will be termed “designated representation” versus “multiple representation” in some cases – I will cover this topic in my next blog.  In the meantime, if you need any clarification on any of this, please feel free to reach out to our team, myself or our Broker/Trainer, Torrin Fee, for further clarification.  We are always here and happy to help or educate.    

Warm regards, 

Lynn Fee