March 31, 2021
As a Realtor, I have been listening to my clients’ concerns and try to find solutions.
Among the many factors for incredible rising house prices in Ontario, especially in and around GTA, one major contributor could be the blind-bidding process.
In many cases, we see the Asking price being much below the actual market value that creates competition among the buyers. Since no one knows what the other offers are, so everyone tries to make the best and highest offer. Eventually, the house Sold price is much higher than the asking price, sometimes hundreds of thousands more.
In the end, the Selling agent proudly posts that he/she was able to sell it that much higher than the asking price, which was already below market value.
Such practice is not good even for the Realtors, as their buyer clients get frustrated after losing several attempts to buy a house for themselves.
It also gives rise to incorrect stats reporting the difference between the asking and selling price.
You may click on the link at the end to see a Globe and Mail article referring to a BMO report calling on the policymakers to necessary actions to cool off the housing market.
This false competition is not good for the market and eventually gives reasons for calls for the government to take some serious actions.
We have been hearing recent talks about laying a capital-gain tax on a principal residence, which is exempt from such tax.
Such a tax would be a disaster for everyone, especially for seniors who heavily rely on their biggest asset in life, their home.
A one-sided housing market, either sellers’ market or buyers’ market, is not good for anyone. An ideal market is a balanced market for all, including buyers and sellers as well as the Realtors.
I hope my fellow Realtors would think long-term and help educate their clients and bring about a level field for everyone.
Take care of yourselves and follow the safety precautions defined by healthcare professionals.
Please pray for the safety of all and seeing an end to the COVID-19 pandemic soon.
#BeSafeAndHelpOthersBeSafe
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A. Q. Mufti
