One of the main struggles in the real estate market is the confusion around ‘bidding wars’.
Buyers don’t know what to offer, and sellers are not always looking at offers with identical terms. We have experienced first-hand the frustration of buyers who will avoid properties with ‘offer dates’, or offer lower than their true limit because of the expectation of ‘games’.
An open and transparent bidding environment means that prospective buyers always know what the high bid is, and in turn can confidently put their best numbers forward knowing that they aren’t overpaying, but also ensuring their best offer is submitted.
MultiBID properties solely revolve around a singular variable: price. With all other details predetermined and fully disclosed, buyers gain assurance in the property’s quality, while sellers can expect an immediate closure of the transaction as soon as the MultiBID process concludes.
Many listings in Ontario are competing already – they are just silent. By showing the leading price, all potential buyers stay involved, and sellers can ensure they get the best price for their property.
In addition to the main benefit of open bidding, why someone should use MultiBID varies on your role within a certain transaction. Consider the following:
Buyer Benefits
– Open Bidding. A transparent and controlled means of fairly bidding on a property.
– Exact knowledge of how much more it takes to purchase the bidding that you’re bidding on.
– Exact knowledge of how much you did not purchase a certain property for.
– Strengthened home valuation when your lender sends an appraiser to determine market value.
– Increased confidence in competing on a property with an open-bidding system.
Seller Benefits
– More interested buyers willing to compete on your property.
– Increased potential of finding that one perfect buyer.
– Benefit of buyer competition which could drive up sale price.
– Comfort in knowing that your property obtained the highest possible price in an open market.
Listing Agent Benefits
– Greatly reduced risk of professional complaints for biased or mishandling of multiple offers.
– Increased opportunity for double ended commissions.
– Strong value add for your services which can assist in protecting your commission rate.
– Ability to prepare and present a Sellers Agreement in advance of the bidding event to Buyers.
– Eliminates the need for timely multiple offer reviews and lengthy negotiations.
– Best overall odds of achieving the highest possible sale price without offer manipulation.
Buyer Agent Benefits
– Able to inform your clients exactly how much more is needed to buy the property.
– Highly increases buyer confidence in their purchase. No second guessing if they overpaid.
– Eliminates buyer blow-back “if they knew” how much was needed to secure the property.
– Only prepare an offer once you know your client is guaranteed the sale.
– Allows you more time to focus on property valuation and client discussions.
