The Federal Government has announced a ban on blind bidding, which is set to begin in April of 2023! What does this mean for you as a buyer or seller in the market?
Currently, offers are kept private by law from other buyers, the substance of the offer; price, dates, conditions, etc. With the ban on blind bidding, buyers will be able to see all the details of other offers and sellers will be able to choose how they want to sell their homes! Let’s explore each scenario!
During an open bid (auction style), buyers will:
- know exactly how much they win or lose by
- know how much they need to bid more to win
- can see the other bids, emotion gets involved, competitive to win
- similar to a blind bidding war, except you now know exactly how much you need to throw down, but so do all other buyers!
During an open bid, sellers:
- probably need to have all home inspections and information accurately provided before the auction
- have to decide whether the price is the most important thing or are the terms & conditions, closing date, etc
- Will they have to decide whether they have to accept the auction price if that is not what they want?
At this moment right now, we don’t know what the process of this looks like logistically and we are unclear about the technology that will be used to handle it. There are many questions to be answered such as, can the seller refuse to sell it at the auction price? What if the buyer’s financing doesn’t get approved? Is there any protection for the buyer?
Overall, I think it’s good to have more transparency, but the results will more or less be the same, just done differently! When there is short supply and high demand, the price is going to keep going up!
Are you for or against the ban on blind bidding? Leave a comment below and let me know your thoughts & why!
📲 647-504-0690
📧 steven@mistersauga.ca