According to the survey, only 22 percent of Canadians are interested and willing to get their dream home by engaging in a bidding war. Of these people, half said they were willing to pay up to 110 percent of the asking price. A quarter said they would pay up to 120 percent.
Those in Manitoba and Saskatchewan were the most willing to bid for their homes. About 32 percent said they would enter a bidding war.
In Ontario, 28% of respondents said they would be willing to enter into a bidding war, while in Alberta, 28 percent were.
In BC, 22 percent of those who took the survey were willing to enter a bidding war, followed by those in Atlantic Canada (13%) and finally Quebec (10%).
The study further suggested that just over half (52%) of Canadians would be ready to pay somewhere between 100 percent to 110 percent of the asking price.
Twenty-seven percent of Canadians went so far as to say they would pay up to 120 percent of the asking price in order to get their dream home.
While bidding wars are becoming increasingly common, particularly in hot spots like certain Vancouver areas, including Kitsilano homes for sale, most experts say that the most bidding wards take place on listings that are already under the market price.
So when a Kitsilano condos for sale is listed at ten to fifteen percent of the market price then you are going to get a bidding war. This doesn’t however necessarily mean you are paying too much when you offer more than what the home is listed for.
Always make sure that you have your financing in place before entering a bidding war and be aware than independent appraisals can effect your financing should you bid too far over the appraised price.