A few cries from people that lost out in multiple offers about the “unfair” practices during bidding wars. Calls for RECO to step in and have agents disclose offer particulars to everyone in order to make the offer process “fair” to all. Calls for the government to step in and force home prices down to make them affordable for all. This is ludicrous and I’ll tell you why below:
First of all, the bidding war is not 6 year old, house league soccer where everyone wins and nobody keeps score. You’re in a battle to purchase a home. You need to get creative and present your best offer that would be acceptable to the seller. Why should a seller be forced to take less than they should in a free market? If the home you want to purchase is out of your league, you may want to consider a different league to play in. Now we are hearing “it’s the listing agent’s fault”. How is it the agent’s fault when the agent is in a binding contract to represent the seller and follow a code of conduct to operate ethically and in the best interest of their client? It’s up to the buyer agent to represent the buyer and try to get them a deal. It is NOT the responsibility of the listing agent to make sure all bidders go home with a participation award. Do we have some bad apples in this industry? Yes we do. Punishing sellers for this is not the answer. The answer is for Brokerages to step up and fire agents that don't abide by the Code of Ethics and remove them from the industry. The answer is for RECO to step up and terminate registrations and revoke licenses of those found guilty of improper behaviour.
Now we get to the government stepping in. Approximately 75% of Canadians own homes. Since three or four that don’t are whining about not having an inferior offer accepted, do we really need to take it out on the overwhelming majority that own homes? Think about how ridiculous this request is. These people want the government to step in and lower the values of homes so more can afford it. What happens to homeowners that have mortgages on their place? They will owe more than what their home is worth. What happens to banks? What happens to CMHC? What happens to property taxes? What happens to the HST people paid on new builds at the higher price? Everyone would be under water. How would this play out? Would any sane person even consider this? Probably not, but the government just might. Do you see how ridiculous this request to lower home values is? Do you see the domino effect that could follow? Let’s hope for some sanity and for someone to do a story on the reality of stupid requests put out in interviews by the CBC.
Maybe the CBC needs to question WHY the offers of these individuals was not accepted. Did they not offer more than the best offer? Did they have conditions that would have made other offers stand out as a better option? Did they not have an adequate deposit? Did their agent do a good job in representing the offer and the potential for them to be able to close? Was the closing date acceptable to the seller? Why weren't the agents that represented the parties involved asked for an interview? Why did the potential purchaser insist on leaving their names out if he/she wanted answers? It would have been prudent to speak to the agents to see why the sellers turned down the offers wouldn't it? So many questions were left unanswered in the articles published by CBC. For a true picture on what occurred, and why the buyer's offer was not accepted, we need to know the answers to these questions. WIthout it, the articles weren't even worth the time it took to read them.