Bidding War Gone Bad: True Story
Grace Chan
Helping you Build Wealth & Freedom through Real Estate | Toronto, NYC, Vancouver | Pre-Construction & Luxury Real Estate
This is a story about what happened to me and my buyer client this weekend.?
??It’s NOT the story about a semi-detached home that was listed for $799k, where there were 19 offers on offer night resulting in 18 losers, and 1 winner paying $1.1M for the home. Although, this too is a true story of a home that recently sold, the tale of what I am about to tell you will be a valuable lesson for both the buy and sell side:
??This is a story about a bidding war that only had one offer — supposedly two. It’s about a property that was perfect for my buyer. It was an excellent property & location that had been on the market for longer than it should. It had not been sold even with a price reduction.
??It’s Friday Night, we see the place. The place is perfect. It checks off all the boxes. My client LOVES the place and wants to put in an offer.
??It’s Saturday, and after a morning of doing due diligence and assembling the right team in place for my client, I reach out to the Listing Agent to get a feel of the situation, asking the right questions in order to properly strategize and position ourselves. And one of the many questions I always ask is if there are any offers, a number a Seller’s Agent must disclose – and he replied NONE.?
??Click here to read the full story: https://bit.ly/3yEyKOv?
?? (or L!NK IN Bi0 to gracemchan.com/blog) ??
??Shortly after our conversation, I get a note in the late afternoon from the Seller’s agent letting me know that an offer from another party ‘may’ be coming. Now from my interactions with this agent from the moment I had booked the appointment, the timing, and the correspondence, something seemed a bit off about this Agent even though he is very experienced and was a Broker of Record for a fair-sized team of Realtors.
??Then shortly after, I get an update from this agent that another offer has come in – with a 9 pm irrevocable! I step away from making & eating dinner finalize & submit the offer. It’s 7 pm, and I’m mildly annoyed that the thought that I have to eat my dinner cold and still feeling something was “off,” I ask the Seller agent to show proof that there had been an offer registered and then submit our offer at 8 pm (also with a 9 pm irrevocable).?
?It’s now after 10 pm, and after repeated texts, calls and emails to the Listing Agent about confirming receipt of the offer and requesting proof of registered offers –? no response.?
??Was I ghosted by the Listing Agent? Because I see from my email tracker that the Listing agent had opened up my emails before 9 pm. Our offer is now null and void. And this Agent had completely violated RECO Laws.
??Sunday morning: seller agent calls to apologize, tells me he fell asleep by accident, and that he is calling the other party the same thing after we speak. I play along, sympathize and thank the Seller Agent for the update – even though I’m fully aware that this agent is completely lying about the other offer (there was none), and falling asleep when there are “two” offers on the table for his seller (highly unlikely).
??About 8 minutes later, the Listing agent calls back to say that the other party will not be resubmitting an offer.?
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???It’s the afternoon, I re-submit the offer, and Listing Agent the properly registers and negotiates.?
??Result? I secure the property below the asking price for my client before the Oscars.
??I could have told the Listing Agent (also a? Broker of Record)? that I had knowledge and proof of exactly what time he opened up my emails, and I could have filed a complaint to RECO – but I didn’t.?
??The Bank of Canada decided to hold its interest rate this March so interest rates did not go up.? This hold in interest is going to bring buyers & sellers off of the sidelines leading to an increase in Toronto’s real estate market resulting in bidding wars again.?
??Moral of the story for everyone?
??Be careful during offers and work with a professional with systems in place so that you don’t get scammed. This is a story of a bidding war gone wrong – for the Sell Side. This would have been a legal nightmare for the Seller Agent (also Broker of Record)? if I decided to report this incident.?
??AND most importantly….NO ONE messes with Grace M Chan (i.e. you want me on your side).
??Don't take any chances, and work with a real estate professional (like me) so that you don’t get scammed
?? Follow me @gracemchan and let's make sure you come out on top!
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