The Ontario Real Estate Association says the Liberal Party of Canada’s housing plan “would criminalize the ability for hardworking Canadians to choose how to sell their homes, by regulating real estate practices through the Criminal Code.” OREA’s statement, posted on its website with a photo of a jail cell, takes aim at the Liberal election promise to ban blind bidding during a real estate transaction.

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“You cannot fix Canada’s housing crisis by denying millions of hardworking families the choice of how to sell their home and by pitting homeowners against buyers. In fact, this plan would have the opposite effect – negatively impacting Canada’s housing market and making home ownership even more unaffordable,” says David Oikle, president of OREA, in a statement.

“Open auctions are the norm in Australia and New Zealand, where sellers overwhelmingly choose to use an open process. Auction fever creates a three-ring circus on front lawns, as hopeful buyers crowd in front of a home with a live auctioneer, or online, and the bidding begins. Far from making homes more affordable, auctions can drive prices higher, and dangerously push buyers to make rushed decisions involving tens of thousands of dollars in just minutes,” says OREA.

The Liberal Housing Plan includes creating a “Home Buyers Bill of Rights” that would ensure “the process of buying a home is fair, open and transparent. It would include banning blind bidding, which prevents bidders from knowing the bids of other prospective buyers; establishing a legal right to a home inspection; “ensuring total transparency on the history of recent house sale prices on title searches;” and “requiring real estate agents to disclose to all participants in a transaction when they are involved in both sides of a potential sale.”

Kevin Crigger, president of the Toronto Regional Real Estate Board, says in a statement that “consumer choice and consumer privacy should be paramount in shaping government policy. Federal public policy should recognize the right that consumers have to privacy and should allow them to consent to the disclosure of personal information, instead of penalizing home buyers and sellers. Punishing home buyers and sellers for wanting to keep their financial decisions private for the largest transaction of their lives is a substantial overreach of the government.”

But Toronto real estate broker Philip Kocev of iPro Realty says, “In my view, OREA and TRREB’s approach has been an irresponsible and narrow-minded response to a very real consumer concern….Offer transparency can be simple. In Ontario, we can utilize our current regulated offer process – with tweaks to allow Realtors to be able to communicate what the top offer is to the seller – which may include price or other terms (price is not always the leading factor for a seller). All participants would know what the leading offer is (versus the current system where they need to guess) and be given an opportunity to improve their offer or walk away.

“OREA and TRREB keep saying that with transparency buyers lose confidentiality. That is simply not true. The identity of the buyer or any of their personal information would never be disclosed. Only the terms of the leading offer would be,” he says.

“At the end of the day, transparency alone won’t solve Canada’s housing affordability crisis or stop price growth. There will still be disappointed buyers and there will still only be one successful buyer, but buyers won’t feel like it was a rigged game, were not given an opportunity to bid again or weren’t even in the running and their offer was just being used to scare other bidders into paying more,” says Kocev.

The complete Liberal Housing Plan is here.

CREA’s election page with the association’s policy recommendations and links to all the party’s platforms is here.

49 COMMENTS

  1. Ok I get it that your buyers low offer was not accepted and you are upset. I can not remember talking to a buyer that had their offer accepted in a multi offer situation be upset. Some of you on here feel that the government should be telling us what to do in just about everything. Now you are saying that the seller should not try to get the most amount of money possible. Sorry to break the news but thats what happens in a strong sellers market. (that can be followed by a crash and price correction). Its our job when selling someone property to try to get them the most amount of money…thats why some of you get paid the big bucks. Sellers rights should not be encroached on by the idiots that seem to run all levels of government. Real estate is like the weather give it time and it will change and it will be a buyers market. Maybe when interest rates go up???Terry

  2. A Buyer Bill of Rights ?? that would dictate how the owner/seller can sell his/her own home to a total stranger. Simply absurd.
    Next the Liberals will be taxing your Principal Residence! O’h wait a minute – it’s actually in their election platform.
    This gets very little attention from people, but taxing your principal residence is way over the line for any greedy political party to consider.
    Since most people do not have large indexed pensions, the equity that homeowners build up is needed as part of their retirement plans.
    Government controls enough already and with any more control and dictating we will be on our way to the dictatorship that government is heading toward.

  3. When I sell something, I want the most money I can get, as soon as possible, unless selling to a friend or relative, at least one I like.

    When I’m trying to purchase something, I want to pay the least amount possible…period, unless there is only one such item left, and I can’t live without it, and fifty others want it. Then I might pay as much as my then current level of stupidity allows…until I run out of money. Ah don’t need no guvment burocrat to tell me wut ta do, Mr. Rogers won’t’ch be ma friend? It’s my money. I’ll spend it any which way I like, especially if I can get some other equally stupid person to pay what I want for something “I” have for sale. Ya can’t fix stupid.

    Canada is still a so-called free country with a market economy, which is slowly being changed into a command economy by the Marxists infecting our education system which turns out guvment burocrats and too many sleazy politicians by the boatload. It’s happening right under our noses in a slow, methodical, creeping kind of manner. That’s why it’s called creeping socialism.

    Keep on electing left-leaning politicians/governments, and we will get what we deserve. Nothing’s free. It just seems that way…wait until you see your buying power erode. Everything the guvment takes over ends up costing many times more than if produced by the private sector. Efficiency is a dirty word for guvment burocrats. Equity, now that’s better…for all at the bottom of the barrel.

    Maybe the out-of-touch-with-the-common man/woman man-child will get his elitist ass kicked out of power next month. Who in his/her right mind would vote for a part-time, substitute drama teacher with two years only under his belt in the House of Commons, and expect a Federal leader of substance and common sense? Apparently many of us. Bamboozled by looks, charm, and all ’round bullshit in a nice-looking (that’s debatable from a man’s perspective) selfi-mad package driven by the leftist media…again.

    Watershed elections determine who gets kicked out, not who gets elected. Next month’s is a watershed election. Let’s see if Canadians are over Trudeaumania 2.0.

    Turdeuamania 0.0 would be more like it.

  4. Doesn’t matter what the product – you can’t expect Daddy or Mommy (Politicians) to change the rules of every game you feel you are losing. The younger generations (under 50) need to learn that in this big, old, mean World!
    Want to change the game? You have two tools – attached to the ends of your legs, put one in front of the other. Slowly your reality will change, and you won’t spend too much in this scenario.
    Eventually, you will learn the process or become educated in the real world.
    Darwin knew something – he was much brighter than some of our politicians.

  5. You all claim to be in real estate but you have never had a buyer say I/we would have paid that much when they lost out. What do YOU tell them that is professional. Suck it up Princess there are always more to bid on. Who says the buyers will lose out, there is a very good chance another buyer would pay more if they knew what the competing/winning bid is and the seller is throwing that money away. I would never suggest an open auction on the front lawn but if someone is actually putting an offer in writing they deserve to know what else is happening from other bids. If done by email as everyone seems to be doing today then only the basic terms are needed to inform bidders. It should always be pointed out the Seller has the right to take whatever offer they want as they own the property. Kocev had a lot of good points and the members should be polled on this.

    • Well somebody decided to pay more didn’t they?

      If a buyer would have paid more in a multiple offer scenario, then pay it!

      Why do they deserve to have the option to pay more because they can afford more but want to sit back and beat out the person who opted to go all out?

      How then is the rights of that topped up buyer equal to the buyer that can afford more as in someone who doesn;tneed financing orneeds the house for their family, but sits in wait?

      How exactly do the geniuses behind and for this expect this would work? Buyer 1 submits an offer of $1,000,000, buyer 2, 20 minuts later submits and offer of $1,120,000 giving the seller 15 minutes to decide. Or what are the numerous consequences to the seller and buyers,especially buyer 2, if buyer 2 says. oh hey I was going to offer $1,120,000 I think I’ll just sit back and watch the fireworks, maybe save a few bucks?

      People are just not putting much though into this!

      • Where is it written that a buyer has the right to know what another buyer thinks a property is worth ? It’s worth what any particular given buyer thinks it’s worth. No one else’s business in my opinion.
        
        Does this process work backwards? I guess I did it all wrong for decades.

        When working for a buyer I made sure first before we went house hunting that I had it in writing from their financial rep exactly what the buyer was “qualified” to spend.

        That figure might not be the same number the buyer felt comfortable spending. Two completely different topics. Just because he can doesn’t mean he should.

        Choose a number to spend that you are comfortable with, and if you don’t get xyz property for that amount decide ahead of time that you will look for another property.

        The current situation is a plan to implode, to self-destruct. The bubble will burst one way or another and who will be left looking for a place to bury the ashes of a transaction gone bust. When was it that common-sense blew out the window?

        No house is worth more than you can afford or the price you are comfortable paying. It’s true that some buyers want to bargain and feel they accomplished oneupmanship. Others don’t think through the long-term consequences, such as when their mortgage comes due and their house is worth much less than they paid for it, the market having tilted, and requires a current appraisal to renew because the then current value cannot be supported.

        I always told buyers to consider if they would be upset if their offer was not accepted. Offer your best supportable decision price the first time around and if that doesn’t work be prepared to start house hunting again.

        Always have a backup plan B. No house is ever worth the stress being caused by the wild wild west marketeering happening in today’s real estate world. And it’s happening in all age groups.

        Someone might recall in the early 1980’s in a market area that later became part of my farm where a doctor had allegedly turned down a 600k offer on his MLS listing. The market dropped quickly. He had bought a new house months earlier, unconditionally. He received no more offers and saw no point in reducing his asking price. The market continued to drop.

        Months later when he had to accept much less, he wanted to sue his listing agent for not “forcing” him to accept that what he called dreadful 600k offer months earlier. Imagine that! How foolish that well-educated owner sounded. As a new agent it sounded like a horror story. Word on the street was that he ended up losing both houses and bought a condo apartment in Toronto.

        The real estate world can be so wonderful and often is. But sometimes foolishness is blinding.

        Carolyne L 🍁

        • Why is this topic all about money being the accepted driving force in real estate transactions?

          There are so many reps speaking on REM who should know that the accepted offer might not necessarily have anything to do with price in the end all.

          Only the seller should know why he is selling. That’s no one’s business. Likewise offers involved are no one’s business except the seller, his rep and the particular buyer.

          The sacredness of privacy is being destroyed. The sale might be estate related, relocation related, power of sale related. Each transaction is different and each must be treated accordingly.

          How can the current article discussion benefit anyone involved in the process?

          Carolyne L 🍁

  6. I’ve been in the business long enough to have worked with open bidding and closed bidding – in the 80’s and 90’s multiple offers were often presented one after the other by the respective agents – sometimes in front of each other and sometimes not – this is no longer done with agents e nailing over their offer to a listing agent who forwards them to their client and indeed in cases only discussing it and preparing sign backs by phone/messenger etc.

    I am a sellers agent and the responsibility is to my client – and I definitely find the system now is better. Bid losers can quickly determine show far out they were and a buyer pays what they can afford and the true value they placed in a home. Once the own the house they quickly want the open bidding they were advocating be changed to closed bidding.

    I do believe buyer beware – often buyers have 10 days to make an offer so if they are serious make sure you thoroughly examine the property before deciding what to pay.

    By the way if you have a single offer how many times do sellers send it back to get more even if the opening offer is in the range they indicated they would sell for ???? So good agents still squeeze for their clients.

  7. It is simply amazing that a government that ignores the law requiring open rendering, that refuses to disclose the terms of contracts it grants unilaterally, that requires blind binding when tendering fir contracts is suddenly all about full disclosure to all parties – if the government practiced what it is advocating others do it would save hundreds of millions if not billions of dollars. But now they want open auctions designed to develop competition when the real problem is simple economics” law of supply and demand where govt takes more and more measures restricting supply while inflating the economy and devaluation the dollar which is driving prices upward –

  8. the government continues the bandaid approach and distract from the real failure here which is …supply.

    before covid, with the influx to people moving into the GTA immigration etc. they needed 50 000 housing starts per year to keep up with the demand. at that time they were only at 30000. So why can China build a 60 story building in 19 days but it takes 7 1/2 years to get zoning approval to break ground on a 4 story appratment complex?

  9. Need to remember that the house doesn’t always go to the highest bidder/offer. there are situations where a client would take less money for a family to move into their home vs the builder who would bulldoze the property the day after closing. I do agree with some of the comments that the marketing strategy of significantly underpricing property below market value creates the optics that homes are selling for incredible amounts above asking when in reality the homes are actually selling close to market value.

  10. The real estate market ahs gone through several cycles where it’s a Buyer’s market and then a Seller’s market, and this is just one more of these situations where the Sellers are on top. In fact, the escalation in prices was very similar from 1972 to 1973 and again from 1987 to 1988 to what we are seeing today. This is not news, nor is some proposal from a government trying to say they know how to regulate the free market.

    There is only one issue involved as has been the case in every other similar cycle: the significant imbalance between supply and demand. There are just 2 ways to deal with that situation: 1. Increase the supply, or 2. Decrease the demand.

    Increased pricing is the way the system works to decrease the demand. There are hundreds of potential home buyers who have simply reached the conclusion they cannot afford to own their home and have resigned themselves to be renters for the foreseeable future. However, the government (and no political party is talking about this aspect) has about 250,000 immigrants lined up to come to Canada as soon as the borders are opened, and the stated level of immigration is 400,000 per year for the next 3 years. The fact is the country simply does not have the capacity to build the necessary housing to support this level of immigration. Let me state that I am 110% in support of immigration, but it needs to be done in concert with our ability to provide the necessary housing because this is not a country where you can live in a tent 12 months of the year.

    And that brings me to the supply side. The fact is that our society has created an environment where getting a university education is on every parent’s agenda, but we have university educated people driving taxis. It’s nice to say we’re going to build a huge number of new homes over the next 5 or 10 years, but it’s entirely different thing to actually build them. This country is massively short of skilled tradespeople. There simply are not enough electricians, plumbers, bricklayers, framing carpenters, finishing carpenters, sheet metal workers, HVAC installers, roofers, etc. to build the homes to support those looking for new homes.

    And then there’s the government red tape involved in developing land and building homes. A federal infrastructure program to facilitate those municipal needs that go along with new housing would be helpful. Today, there is almost $70K of the cost of a new $700K home taken up with “red tape”. I’m not saying elements such as water treatment capacity, sewage treatment, fire and police services, space for parkland, and many other components are not important, but these all add a lot of cost to a new home. And, then we have the $60K in GST and PST in Ontario. Of course COVID has complicated the supply side by limiting the amount of raw and semi-finished materials that are available to build homes. It is responsible for driving the cost of home construction up significantly, but there are signs that is starting to return to normalcy.

    So, let’s see a some politicians address these issues at the ground level rather than spouting broad-based missives with little reality behind them.

    Home inspections are another whole topic.

  11. I believe in transparency in so far as bidding. Also, I think that sellers should have an inspection done before they list. If there are major issues they either fix them or disclose so the buyers can decide if they will move forward.

    Full disclosure of how many offers are received and once all offers are in hand then disclose the offer amounts to everyone and let people revamp their bids. Let this process happen only once in the bidding process and that way in my opinion the buyers will feel as if they had a fair chance. This way people don’t have to start off with crazy overpriced bids knowing they will have a second kick at the can.

    • Unless it’s an estate or court ordered sale I’m going to sqeeeze the seller and give them the least amount of time to consider the offer, why? because common law says that my client has the right when bargaining to look out for themself first.

  12. Bidding Wars are a temporary market aberration. This weird concept of Controlling Bidding Wars, is the product of an election campaign. It will not fix the core issue – Prices that have run too far ahead of the generational ability to enter the housing market.

    Owning a home is often a goal, not just for wealth accumulation – but for family, for stability, for nesting. Owning a home starts as a dream with a plan. And Dreams must have at lest a chance of coming true. For it is ‘hope of dreams coming true’ that builds systems of safety and all the other nasty and/or wonderful things we’ve come to see as social comforts.

    That prices ran so far, so fast is the single issue. The “market” might fix that, but with much pain. Politicians could have stepped in with a Serious Style of Spec Tax to at least slow down the all too fast ‘Step-Ups’, and the “Specs” too. But they didn’t. And they still are not. Why?

    And now they want to govern how in a ‘free market economy’ a private citizen can “market & sell” their biggest asset? Scary. And of zero value in fixing the price, savings, earnings gap.

    Yes TRREB, Yes OREA bang the drum. Bang it Loud. This blame on Bidding Wars is not a solution. But will be a defining problem as a look-back.

  13. Ban “blind-bidding”….best news I’ve heard in a long while, and before you jump all over me, I am a realtor!

  14. So let me understand this. They all stand for transparency and full disclosure. But when it comes to the most important thing $$$$ they fold like cheap tents and look the other way. Punishing first time buyers by using this blind binding archaic system.
    What a bunch of hypocrites. Many times I have felt that the vendor would have achieved a higher price
    had the bidding been open.
    We now finally have the moment to make changes and OREA and CREA decide to protest against the governments initiative and want us to help them? So all along they’ve been silent by not responding to numerous requests from agents to make the change and yet ask us to fill out these ridiculous surveys as to “how did we do” . Well you guys suck. How’s that. They need to listen to us, not just when they want to and quit punishing the buyer(s) as they are as important to this process as is the vendor. We need transparency on this most critical matter not just all the soft stuff.
    For them to have secretly protected this ridiculous system of bidding without acknowledging their support of it to us is unbelievable.
    I’ve been in this business too long and have never ever felt that OREA and CREA ever understood how our business truly functions.
    We need this change and OREA and CREA need to step up to plate and support us the memberdhip, the buyers and the sellers. How does a seller know he got the best offer and how does the buyer know he didn’t over pay. Open bidding that’s how.
    It’s not new. It’s a system that’s been used for ever because it works.

  15. The government wants realtors to be auctioneers. Wake up realtors , such as system will destroy your value to the transaction. And stop calling it blind bidding as there is no such thing. The potential buyers know how many offers they are competing with and they know at what the time the offers will be presented . This is not blind. The government must deal with the supply issue . How about other possible remedies such as larger downpayments and more stringent qualifying standards. In North America we feel it is everyone’s right to own a home while in many European markets , home ownership is a privilege. Leave the market alone and let market forces dictate what the future will bring.

  16. From article above… “…Far from making homes more affordable, auctions can drive prices higher, and dangerously push buyers to make rushed decisions involving tens of thousands of dollars in just minutes,” says OREA.”

    Oh and 1 hr or less in the current multiple offer scenario is a standard that does not make my client make a rash/rushed decision?

    Do people in other types of auctions…art, farm equipment, estate sales…make rash decisions?

    Hahaha, OREA.

    Need I remind anyone that OREA is run by a conservative…Tim Hudak. Is this making the issue political, Tim?

    PS: I am not a Liberal supporter.

  17. Agree with Philip Kocev, Bidding should be semi open process like project tendering where each bidder knows how many bids are there and what price and terms. Bidders identity is never revealed so privacy concerns don’t arise. Trreb, orea Crea should jointly create a bidding platform of offer platform so all buyers or their agents can make offer online with details available to each bidder. Also they should make home inspection report by seller compulsory and all lenders should lend based on the inspection so many first time buyers will be spared having to do expensive repairs after purchase.

  18. As a realtor I’m taken back by the lack of action by CREA, OREA and TRREB to regulate the process of Blind Bidding. In numerous surveys and replies to them never a response !
    We handling this process very unfairly and unprofessionally in my opinion. Prices should be market prices and if someone wants to pay more then that’s fine. But stop misleading buyers with the ridiculously low selling price. Wasting everyone’s time.

  19. This idea again demonstrates that Liberals want to dismantle the free market – to their benefit – while looking like they are morally superior for doing it. Justin and his ilk believe that they can control the basic principles of supply and demand. Wait. They can. It’s called communism.

  20. House prices up 40% commission rates unchanged, 40% increase on a sale for agents/brokers. Unreal! $50K for a few hours work, they sell before “hitting the market tomorrow”. Blind biding is criminal when you have selling agent LIE “WE HAVE SEVERAL STRONG BIDS DO YOU WANT TO TOP UP YOUR OFFER” when in fact only 2 offers exist, one below list and one over. In this case the already winning bid put another $25k on the table for nothing. That is why consumers need protection. And the right to a Home Inspection is a MUST. Do all agents lease their Mercedes & Porsche without a test drive? But expect you to spend $1M plus without an inspection? You can turn in your leased car but you and the bank own the house that may have issues or in need of repairs the buyer cant afford. Bring on Legislation

    • Please stick to the topic, I’m guessing you are not a realtor as there are many inaccurate and exaggerated comments made. I do not want to spend time exposing your inaccuracies, but this legislation or something similar is needed in bidding wars.

      • The persons not wrong, I have 2 jobs, a realtor and salary job… I make note selling a free houses (maybe collectively 80hrs straight of work for one house) than working 2000 hrs (collectively) of work from my salary job (40hrs/wk, 50 wks).

        • so, you didn’t take any courses to be a Realtor? No on going education? No continuing learning everything there is to know to sell real estate? If you are counting the hours you work on a transaction as the total hours for that sale, you are clearly missing the mark, and could be why the public thinks Realtors don’t earn their commission. I can assure you I do. I do not want to be an auctioneer selling homes. I believe that this too shall pass. This market will not last forever.

  21. Last I checked not all homes sold with multiple offers. I don’t see how open bidding will work if nobody wants to bid. This market is unprecedented so many homes are selling over asking with multiple offers, but they were also underpriced. Go back to 2018 you were lucky if you sold your home let alone get multiple offers. Once the dust settles we will be back to normal conditions with one offer negotiations to under asking. Prime minister JT is acting like then premier KW did in early 2017, we all know how that went. Don’t mess with the real estate market it will only bite you in the backside.

  22. Good comments by Philip Kocev. TTREB (and others) really need to stop playing the ridiculous privacy card. There is no privacy issue here. Open vs. closed bidding should quite obviously not be mandated – sellers have rights too.

  23. Unfortunately this is a supply/demand issue. There was no word of implementing a bidding process when it was a buyers market. The vocal cry comes from the failed bids on properties where the buyers all entered the bidding process eyes open and accepting the process, until it didn’t work the way they wished. A sense of entitlement doesn’t carry any validity. The solution is greater supply to achieve balance. In a country like Canada with thousands of square miles of open land, at least we may have options. In European countries where land is limited and at a premium they have adapted in different ways, multigenerational housing, smaller units, and housing built on municipal leased land have all provided affordable options. Predicting the future is the key and we can look at many different models globally to give direction.

  24. I agree with Philip Kocev of iPro Realty. Keep it simple. And a home inspection should be part of the APS.

    • It will be the future. Mandated home inspections before a property us put up for sale. Requirement in UK. Must meet certain standards as to utilities and structural integrity. Obviously in Canada not meeting the insulation factor is what concerns potential sellers and Realtors with respect to older homes.

      • There would have to be one heck of an exclusion list for this since no one will want to pay for a an inspection on a tear down. Developers, contractors, renovating owners and some flippers often don’t care. These types, expecially the last 3, have the deepest pockets and contribute to the improbable bids of competitors. A government should not be dictating to these people that they must first determine by a third party the state of the property they wish to buy especially since they may be more knowledgable than the 3rd party.

        Instituting mandatory inspections will either require the seller provide the inspection or leave the property on the open market for a specified number of days. Imagine the impossibiity during the pandemic of 5 or more serious buyers needing to perform a 3 hour inspection on a property taking bids in 5-7 days and the reduction in potential buyers that would cause.

        Just as the attempt to make energy tests mandatory failed, an attempt at this would be met with swift backlash since it would place the rights of buyers and sellers at inequitable situation.

    • If Justin decides home inspections are mandatory, how does he dictate to a provincial government that controls real estate organizations. If he could there is nothing to stop a buyer from omitting a home inspection on an offer. A seller would prefer a clean unconditional offer. We have that exact situation happening every day. Justin should not meddle in other people’s business. He likes to bribe us with our own money

      • if the Government make any of this mandatory, it will encourage Sellers to sell privately to not have to follow any of these rules.

    • I agree with Phillip Kocev of Pro Realty. Really frustrating to have Buyers who want a home, but we have no idea what to bid. Go $200K over ask and not get it or have they spent $100K more than they needed. Blind bidding is completely unfair to buyers and drives up the cost of the homes. Sellers are making out like bandits. They should get a fair price for their home, but buyers should not be put in the position of paying a ridiculous price with no inspection or financial clause.

  25. It appears Justin is getting desperate. Seller’s currently have the right to choose how they sell their property. The Government should not dictate this. Buyer’s should also not be forced to disclose their bids – and other details of their offer.

    Perhaps, someone may want to inform Justin that no amount of home buyers programs and new regulations will make homes more affordable. We need red tape cut or eliminated at all levels of Government. While parts of the Green Belt are important and need to be protected, the majority of it needs to be reviewed and new boundaries drawn. Telling farmers they can’t sell their land to a developer is lunacy – how did we get here? Oh, yeah, that was another Liberal Government. The same folks whom are pro-immigration also seem opposed to any new building or expansion to accommodate the 200k+ new immigrants annually. I am pro-immigration, but also pro-development. You can’t have it both ways…

  26. In my experience this will help greatly to reduce ridiculous over bidding, and unrealistic increase in house prices.

    • In your experience? Have you worked real estate in an open bidding environment, perhaps in Australia or New Zealand to gain this experience? Or were you an auctioneer?

      In the real world, price correlation is not absolute either way. I just watched one live on the new home auction service in Ottawa yesterday. Buyers caught in the game, outdoing each others’ bids under an imposed 5-minute timer, until the final purchase price was $115,000 higher than the auction company paid for the property 3 months ago – and Ottawa prices have been declining over the past 3 months. Others on this site have sold under market value. The sample set is still too small to draw firm conclusions regarding correlation of process to sale prices.

      There are two separate issues people are confusing here as well: 1. open vs closed “bidding” (offer transparency), and 2. regulated/managed bidding (offer process) vs. real-time bidding (online auction, auctioneer on the lawn…)

      I believe a managed offer process leads to more sale price (market value) consistency than a real-time process, and open bidding vs. closed bidding likely has little impact on average sale prices (market value) in a managed process. I think the process options ranked by market value consistency (and therefore integrity) are likely:

      1. open bidding in a managed process
      2. closed bidding in a managed process
      3. closed bidding in a real-time process
      4. open bidding in a real-time process

      Thoughts, anyone?

      • The Liberal proposal allows for transparency within the confines of the parties involved in the transaction. This is not a privacy issue…that’s a red herring!

  27. Until now I’ve never seen see eye to eye with OREA,’s political screeds.

    What is wrong with people? Where are the bill of rights for sellers? Not all markets are hot or even hot all the time putting them at the mercy of buyers.

    Sure some buyers are complaining mightily that they want to know what PRICE they’re bidding against – yes it is in their minds all about price – but where are the rights of the buyers who may be maxing out their bid and don’t want to telegrapgh to the rest they can simply be outbid by a few bucks and what is to stop a buck at a time drawn out process? more legislation?

    How about a seller who chooses a lower bid maybe because the buyer or their agent was an ahole? It happens, then what’s next, legislate mandatory acceptance of highest and best?

    As well, buyers with conditions unless the rest of the offer is so sweetened that the seller can’t resist, will have no chance nor will they have a chance against the buyer who says, I want this property and can afford to out-auction the rest by 10’000s of thousands, then what? legislation to cap an offer price? Buyers know the drill, put in your best offer and call it a day, stop playing games hoping that your lowball offer is incontention and hoping for 2nd and 3rd rounds to try to out manoeuvre serious bidders. And to the agents who encourage this game – you are asking for a solution to a problem you are perpetuating.

    And these same buyers certainly don’t care about the feelings of losing buyers when they’re in the seller seat.

    No legislation is going to change human nature and help losing buyers feel better. Every agent has had buyers who claim to not be so attached to a property only to cry after losing it that it was their forever home.

    This isjuststupid pandering to the squeaky wheel!

    • Seller can still refuse to sell to the highest bidder, that right is absolute. Even in large projects its not lowest bidder who wins all the time, it all depends on conditions attached with offer

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