Friday, October 21, 2016
How much would you go over budget to win a bidding war for your dream home? A new study of Ontario consumers, commissioned by the Real Estate Council of Ontario (RECO), found that 47% of those polled would consider paying up to 10% over their budget and 31% would consider offering 10 to 20% more to outbid the competition. In the Greater Toronto Area, where bidding wars are more likely to occur, 57% of respondents would consider offering up to 10% over budget and 38% would consider going over their budget by between 10 to 20%.
To help consumers overcome the challenges of a hot market, RECO recently launched the Be Home Smart Tour, a community outreach campaign that will travel to 13 locations across Ontario this fall and into 2017. The campaign includes an interactive display booth targeting those in the buying and/or selling stage of their lives – engaged/newly married couples, new parents and downsizing boomers.
"Our research findings make it clear that too many Ontarians may be struggling to keep a cool head in the hot and highly-competitive real estate markets that are becoming the norm," said Joe Richer, Registrar of RECO. "Buying or selling a home can be a rollercoaster of emotions. People tend to let their heart rule their heads, especially first-time buyers," he added.
In fact, the survey found that 35% of recent homebuyers said they let their emotions influence them more than they should have the last time they purchased a home. Among millennials 18 to 34 years of age, the number jumped to 42%.
"Real estate transactions can happen at lightning speed, especially in markets where there is a shortage of listings. The best way to make quick decisions in the heat of the moment is to prepare in advance," Mr. Richer said.
Upcoming stops in the RECO Be Home Smart Tour include the Zoomer Show in Toronto at the Enercare Centre on October 29 and 30 and the BabyTime Show in Toronto at the Metro Convention Centre from November 11 to 13. More shows around the province will be added in 2017. For more info, visit the video at youtube.com/recohelps.