First-Time Buyers More Likely to End up in Bidding War!

First-time buyers more likely to get into a bidding war according to BMO survey

By Monika Warzecha

Battle of the Badges 2011 Flickr Photo By ClaireWilliamsPhotographyConsidering all the many stresses that go into the buying a home – getting approved for a mortgage, picking the right property, and putting a massive amount of money on the line – one of the most trying experiences a would-be buyer can have is entering a bidding war.

And according to a new BMO Home Buying Report, it looks like a significant amount of Canadians just refuse to take part in these tense exercises in one-upmanship.

When it comes to competitive bids in 2013, 72 per cent of Canadians said they were unwilling to enter a bidding war when making an offer on a home.

However, first-time buyers were a bit more eager to get the property of their dreams by going to battle: 39 per cent were willing to enter a bidding war, compared to 28 per cent of total buyers.

The people of the Prairies were the most likely to get caught up in multiple-offer situations. About 35 per cent of home-hunters in Manitoba and Saskatchewan said they’d be willing to get into a bidding war. On the other side of the country, only 21 per cent of Quebeckers were willing to do battle, the lowest provincial average altogether.

Unsurprisingly, Torontonians proved to be sneakiest out of all the other city-dwellers, with 25 per cent of owners willing to under-price their homes to spur competition. Vancouver and Calgary followed at 17 per cent and 12 per cent respectively.

When it comes to budget, Canadians proved to be a sensible lot: the majority of likely buyers (58 per cent) intend to set a budget and stick to it. First-time buyers similarly said they wanted to stick to a budget, with 59 per cent saying they won’t likely go over a fixed priced. Which begs the question: wouldn’t getting into bidding war be a great way to blow a budget?

For more details on the survey, conducted by Pollara, check out the table below…

BMO bidding war survey

 

For more info on how to win or avoid a bidding war on your next home purchase, or to find out how to sell your home in a bidding war, email Kyle Bouchard, Real Estate Broker: biddingwarspecialist@kylebouchard.ca

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