Toronto Has a Real Estate Problem – We Have A Solution.
Look, I’m a college educated university dropout and have been in the Toronto Real Estate game for nearly a decade. It doesn’t take a genius to see that we have a problem. I can tell you that there’s no government intervention that’s going to cool the Toronto Real Estate market. Any efforts made by the Feds is going to be like pouring a thimble full of water on a forest fire.
Feds, you really want to cool the market and kill the local economy? Hike rates. You’re a one trick pony and unfortunately your pony sucks. Sure it’ll take buyers out of the market but absolutely crush homeowners with variable rate mortgages at the same time.
Let’s instead look within the Real Estate industry and ask forward thinking pros like us what we think and let me tell you, our solution will work and you don’t need a well funded Federal think-tank to come up with it.
Adopt a new system where Buyers get only one shot at buying the home of their dreams and get rid of the ridiculous closed bidding system. Open bid, one shot. You get the home or you don’t. This would make the role of the Buyer agent more important and get us to really dig deep to fine tune our pricing strategies. On the listing side the focus would shift from administering the reams of paperwork that show up on offer day (which the listing brokerage is now required to keep) to purely focus on marketing, pricing and promotion.
Could be auction style or via an electronic submission system. Whatever it it, we need to start thinking about a real solution. Explaining to a Buyer what it means when listing agents saying “ya you’re close but you need to come up” is getting a bit painful on the Buyer side. This ambiguity is forcing Buyers to make irrational decisions just to stop the bleeding. Nobody wins there. The listing agent thinks they’re working in the best interest of the Seller but that Seller is going to turn into a Buyer at some point and just give that money back (if not more) to another Seller further perpetuating the problem.
Let’s find a way to clean up our own mess, shall we?